Why Manchester United have cut £2.16m Sir Alex Ferguson contract

Manchester United legend Sir Alex Ferguson is the latest victim of Ineos cost-cutting measures after they decided to cut his £2.16 million annual contract with the club.

Since he stepped down as manager in 2013, the Scot has remained on the payroll as a global club ambassador and club director and been remunerated with an annual salary. The club's 2014 accounts state Ferguson signed an agreement on 17 October 2013 in which he became a global ambassador and received £2.16million for his services.

The Athletic say the new United part-owners informed Ferguson the club are no longer prepared to sustain his payments in a face-to-face meeting at Old Trafford. It is understood the matter has been dealt with 'amicably' and United's legendary manager will remain a non-executive director at the club and be welcome to attend games.

Since Sir Jim Ratcliffe bought a 27.7 per cent stake in United last February there have been widespread cuts to reduce costs at Old Trafford, including 250 jobs across the club, as part of a series of cost-cutting measures recommended by consultancy firm Interpath Advisory, who had been hired to review the club’s business and operational outgoings.

Senior executives have also had their access to club credit cards removed, while the club also axed free travel for staff to the FA Cup final against Man City, as well as the cancellation of the United employee Christmas party.

It hasn't stopped United from spending big in the summer transfer window though. Erik ten Hag's side were the second-highest spenders in the Premier League