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Sir Alex Ferguson, one of the most successful managers in world football, led Manchester United for almost 30 years from 1986 to 2013, has been an ambassador for the team ever since and will step down at the end of this season. The move continues the club’s “cost-cutting” policy, announced shortly after Britain’s richest man, Sir Jim Ratcliffe, bought a minority stake. It, like many of the club’s new owners’ previous moves, has caused controversy in the local press.
Sir Alex Ferguson's impending sacking as Manchester United's global ambassador made headlines in the football sections of almost every major British media outlet on Tuesday, including the Times, Telegraph, Guardian and Independent. The Scot, who is one of the most famous and respected managers in the world and led Manchester's top club for nearly three decades, was said to be the victim of a cost-cutting drive at the club. He will reportedly continue as a board member.
Both posts were somewhat deliberate. Ferguson received the award almost immediately after finishing a very successful coaching career. During this time, he won 38 trophies with United, including 13 English Premier League titles and two Champions League titles. According to The Times, his ambassadorial position earned him about £2 million a year. According to the newspaper's sources, Jim Ratcliffe announced his decision directly to Ferguson in a private meeting. The matter was reportedly resolved amicably, in a friendly atmosphere. The club has not provided an official comment on this matter.
The sacking of Ferguson, who has been given club legend status and a lifelong statue, is far from the first step in cutting costs.
Chemicals giant Ineos, owned by Sir Jim Ratcliffe, effectively took control of the club's football operations, paying just over £1bn for a 25% stake in February 2024. The first wave of staff cuts began in the summer, with Manchester United then deciding to make 250 staff redundant (some of whom had been with the club for decades). Around the same time, it was reported that Ineos had asked club staff to pay £20 for their bus fare to the FA Cup final at Wembley Stadium in London in order to save money. The Athletic reports that United staff have traditionally had free access to games of this magnitude.
Earlier this year, The Telegraph reported that the club was under threat of having points deducted from the English Premier League table. Losses over the last three seasons have amounted to around £312 million, and England's sustainability rules state that clubs in the top flight cannot lose more than £105 million over a three-year period. However, the club denied this possibility. This development means following financial principles.
In total, the club expects to save around £10m by suspending the ‘non-essential activities’ outlined above. At the same time, Manchester United are not skimping on activities that are considered essential for Manchester United. The club spent over £200m on new players in last summer’s transfer window (a net loss of around £100m, half of which the club covered through player sales). The figures for 2023/24 were similar. As a result, there has been a 10% increase in first-team wages and depreciation charges. (Depreciation rules allow the cost of acquired players to be taken into account on the balance sheet in equal instalments, rather than all at once, depending on the length of their contract.)
Another major area of focus has been ensuring the team's training activities remain top secret. Last week, the Daily Mail reported that a "massive white wall" had been erected outside Manchester United's Carrington base. Sources say it cost £200,000.
The team finished 8th in the last English championship (they haven't finished lower since the Premier League, in 1992). This in itself had a serious impact on profits. So one of the strongest clubs in Europe was once again excluded from the Champions League. United's season started even worse. After seven rounds, they are in 14th place, six points behind the top four in the short distance, which gives them the right to participate in the most prestigious European Cup.
Meanwhile, there is another important issue on the agenda for Manchester United. It is the need to rebuild Old Trafford, where the team has played for more than 100 years. Jim Ratcliffe himself spoke not about renovation, but about building a new stadium with a capacity of 100,000 spectators. The project, codenamed "Wembley of the North", has not yet been approved, but disagreements have already arisen over its financing. Ratcliffe, the richest man in Britain, said that a "dialogue" with government officials is needed on this issue. In other words, Ratcliffe himself, who changed his tax residency from Hampshire to Monaco in 2020, does not belong here, which means the stadium must be built at least partly with taxpayers' money.