Sir Alex Ferguson's Man Utd contract axed by INEOS as Sir Jim Ratcliffe brutally ends long-standing deal

Sir Alex Ferguson's multi-million pound contract with Manchester United has come to an end after a decision from Sir Jim Ratcliffe and INEOS.

Ferguson, United's most successful manager, retired in 2013 after 38 trophies but remained involved in the club.

A regular at games, the Scot has served as both a director and ambassador and received an annual salary.

According to The Athletic, citing 2014 accounts under the related party transactions section, Ferguson signed a deal to become a global ambassador in October 2013.

He was therefore paid £2.16 million for his services as part of a long-standing arrangement.

However, it is now reported that ties are being cut - with INEOS taking the decision due to cost-cutting measures.

Ratcliffe informed Ferguson in a face-to-face meeting and the issue is said to have been dealt with amicably with no hard feelings.

The 82-year-old will remain a non-executive director and still allowed to attend matches, but will not receive payments beyond the end of current campaign.

The move follows on from INEOS telling staff that 250 jobs were being cut back in July, free travel for staff for the FA cup final being scrapped and the Christmas party for employees also getting the boot.

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Consultancy firm Interpath Advisory were hired to advise INEOS and United on their business outgoings and came up with ways in which they could cut costs.

In a recent set of accounts, United said they expect to “realize annualized cost savings of approximately £40m to £45m" following various measures.

Ferguson, who managed United for 26 years, was the first person Ratcliffe spoke with when he agreed to purchase a stake in the club back in January.

He sat next to Ferguson in the director's box for the 2-2 draw against Spurs and spoke glowingly about his involvement in the club.

Image: Getty

“He was the first person I met when I went up there which I think was the second week of January and I had a meeting from 9am to 10am at his house and I left at 1pm," Ratcliffe told reporters in February.

"He never stopped. He’s got a lot of experience, a lot of stories to tell and a lot of thoughts about the club.

“I don’t think he has been encouraged to get involved but he is still very thoughtful about the club and he has an immense amount of experience. He really understands the values and traditions of the club and what it’s all about. He’s still fiercely competitive, Alex Ferguson.”

Bryan Robson and Andy Cole are among the other former employees who are involved with United in an ambassadorial capacity.