Alex Ferguson's reaction to brutal Sir Jim Ratcliffe axe from lucrative Manchester United role

Ferguson, the most successful manager in United's history, has been paid a multi-million pound annual contract as a club ambassador since stepping down as boss in 2013

Manchester United have ended Sir Alex Ferguson's multi-million pound ambassadorial role as part of major cost-cutting measures at the club.

Ferguson, the most successful manager in United's history, has been paid a multi-million pound annual contract as a club ambassador since stepping down as boss in 2013.

But Ferguson has become the most high-profile victim of Sir Jim Ratcliffe's radical overhaul of United in terms of cost-cutting.

Club sources have admitted the decision to axe Ferguson's ambassadorial role was taken in the context of Ratcliffe's huge cuts which have already seen 250 United employees lose their jobs.

United sources claim the decision was accepted amicably by Ferguson, with no acrimony between him and Ratcliffe, and that the 82-year-old will always be welcome at Old Trafford.

Sources have claimed the news was relayed to Ferguson in a face-to-face meeting with the United hierarchy and that he accepted the termination of his paid role with no rancour.

It is understood Ferguson's United ambassadorial role is one of a number of time-consuming responsibilities he is stepping back from, with the Scot turning 83 on December 31.

After calling time on his 26-and-a-half-year reign at United, in which he won 38 trophies, including 13 Premier League titles and two Champions Leagues, Ferguson was kept on as a global club ambassador and club director, for which he received a lucrative salary.

Reference to Ferguson status as a United ambassador to the club can be found in club accounts from a decade ago, where it states an agreement was reached in October 2013, in which he became a global ambassador and received £2.16million, which has continued since then.

Ferguson has also remained a director on the United's football board and regularly attends games home and away, most recently a 0-0 draw at Aston Villa on October 6.

As well as cutting jobs, Ratcliffe has taken action over the perceived largesse at United, which he and his advisors felt was holding the club back from performing to its full potential. Senior executives have had company credit cards withdrawn, while there was outrage over the removal of free travel for staff to the FA Cup final against Manchester City at Wembley back in May.

Ratcliffe is also understood to have ended a lucrative bonus payment scheme of a year's salary – capped at £50,000 - for loyal employees who reach 30 years' service with the club.

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