Sir Jim Ratcliffe reveals how Sir Alex Ferguson reacted to his £2m job being cut by INEOS

Sir Jim Ratcliffe has disclosed the manner in which Sir Alex Ferguson responded when he was informed that he would be terminated from his position as a paid employee for Manchester United.

After retiring in 2013, after having managed United for a total of 26 years and winning 38 trophies, Ferguson continued to be involved with the club in the roles of director and ambassador. He was the most successful manager in the club’s history.

Ferguson reportedly signed a contract to become a global ambassador in October of 2013, and he was paid an annual salary of £2.16 million, as stated by The Athletic, which cited 2014 accounts under the related party transactions section.

On the other hand, it was reported in October that the Ratcliffe and INEOS, who own 28.94 percent of United, were terminating the agreement as one of the many cost-cutting measures that they were taking.

During that time period, it was reported that Ratcliffe presented the information to Ferguson in a face-to-face meeting, and the decision was reached in a cordial manner. However, Ratcliffe has disclosed the specifics of the meeting in a comprehensive interview with the BBC. He also discussed how he ultimately “put the club before himself” after having a conversation with his son.

The words “I take my hat off to Alex” were spoken by Ratcliffe.

When I sat down with Alex, there were only the two of us in the room, and I told him, “Look, the club isn’t where you might think it is. As a result of the fact that it is spending more than it is earning, we are going to run into some difficulties in the end. Sincerity compels us to admit that we are unable to continue to pay you two million pounds each year.

When I told you, “I’m going to leave it with you, let you have some time to think about it,” you said.

“It was very mature and mature. However, he eventually came back three days later, after having a conversation with his son, and said, “Okay, I’m going to step away from it.” He may have been a little bit irritable at the beginning, but he eventually got it. The choice I made.

“I think it reflects really well on Alex, because he put the club before himself.”

Ferguson was the first person Ratcliffe spoke with when he agreed to purchase a stake in the club back in January 2024. The two were sitting next to one another in the director’s box for a game against Spurs. Ratcliffe decided to purchase a stake in the club.

When the Scot was asked about INEOS purchasing a stake in United, he responded by saying that he was “optimistic” about Ratcliffe’s involvement in the company.

As long as he continues to serve as a non-executive director, the 83-year-old is permitted to continue attending United games.

United is in a precarious financial situation, despite the fact that it is one of the largest clubs in the world. In the summer, 250 employees were laid off, and the club has recently stated that they anticipate “a consultation process with employees” to be followed by the elimination of an additional 150-200 positions.

The decisions that were made to reduce expenses were defended by Ratcliffe, who stated that he believes “they are necessary” in order to put the club “on to a stable footing.”

He asserted that if United had not implemented cost-cutting measures such as layoffs and other measures, the airline would have been unable to meet its financial obligations by the time Christmas rolled around.