Manchester United terminates Sir Alex Ferguson's long-standing ambassadorial role

Ferguson, 82, departed Old Trafford in 2013 after an illustrious 26-year tenure at the club, during which he secured an impressive 38 trophies and solidified his reputation as one of the greatest managers of the modern era. Following his retirement, the former Aberdeen manager has continued to serve as a global club ambassador and club director for Manchester United, receiving a generous annual salary as part of his responsibilities.

But after the completion of an annual cost review overseen by INEOS and namely Sir Jim Ratcliffe, the Red Devils have chosen to now end those privileges, with a meeting between the pair said to have ended amicably as the club again tries to best balance their finances.

Manchester United's spending review sees Ferguson culled

According to The Athletic, Ferguson signed an agreement shortly after his departure back in 2013 that allowed him some compensation for his service to the club.

The report states how the Scot received £2.16 million for his services, an arrangement that continued for well over a decade.

It is a practice that has also been honoured with many other legends, which included the late Sir Bobby Charlton, former chief executive David Gill and non-executive director Michael Edelson.

Ferguson is not currently a member of the new board which was crafted by INEOS in the summer, but he is still expected to remain as a non-executive director at the club and be welcome to attend games at the Theatre of Dreams and beyond.

Get FourFourTwo Newsletter

The best features, fun and footballing quizzes, straight to your inbox every week.

Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Manchester United are still largely owned by the Glazer family, who have in the past quite clearly tried to keep Ferguson sweet.

But with INEOS's cost-cutting claiming another victim, the Red Devils are still quite clearly trying to balance the books after years of financial problems away from the pitch.

VIDEO Jim Ratcliffe's Manchester United Takeover EXPLAINEDWhat problems are still looming for INEOS?

The biggest question over the international break has been regarding the future of first-team manager, Erik ten Hag. The former Ajax boss has faced increasing pressure over his position given Manchester United's poor start to the new season.

According to a separate report from The Athletic, there is continuing talk over how the club approaches this situation, given Ten Hag would be due a hefty severance package should Manchester United chose to part with him this year.

"I don't want to answer that question. I like Erik," responded Ratcliffe when asked about Ten Hag's future earlier this month. "I think he's a very good coach but at the end of the day, it's not my call, it's the management team that's running Manchester United that have to decide how best we run the team in many different respects.

"They've not been there a long time, so they need to take stock and make some sensible decisions. Our objective is very clear – we want to take Manchester United back to where it should be, and it's not there yet, obviously – that's very clear."