Ferguson signs a rolling contract
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Ferguson's previous contract ran for three years from 2002
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MANCHESTER, England (Reuters) -- Manchester United manager Sir Alex Ferguson has signed a new 12-month rolling contract, the English champions said on Wednesday.
The new contract will start from June 30, 2005.
Ferguson's previous contract, signed in 2002, ran until 2005. The 62-year-old has been at United since 1986 and has won eight league titles.
John Magnier and J.P. McManus, who hold a 25 percent stake in United through their offshore investment vehicle Cubic Expression, threatened to force an extraordinary general meeting if they did not agree with the length of Ferguson's contract.
Whether any rolling contract would start from the day Ferguson signed or from the end of his existing deal was seen as crucial to the Irish duo's position.
Reacting to the United announcement, a source close to the Irish tycoons said they were "considering their position" and would make their views known directly to the United board.
But Manchester United Chief Executive, David Gill, said: "We came up with the idea for a one-year rolling contract when discussions first commenced in Summer 2003, because we believe it reflects our total confidence in the manager and also reduces speculation about his possible retirement date.
"Sir Alex considers this arrangement to offer distinct advantages over a long and fixed-term contract in that he feels it will keep him even more motivated every season and hungry for more success over the future years.
"His fantastic record with Manchester United speaks for itself and his appetite for the game and his desire to build a new generation of world-class players at Old Trafford is undiminished. He has the Board's 100 percent support."
Ferguson said: "I'm very happy with the new contractual arrangements. It gives me strong focus on the short-term challenges in the new season ahead as well as the long-term freedom to look to improve our current squad and to win trophies both domestically and in Europe.
"The Board and, in particular, Chief Executive David Gill have demonstrated their confidence in me and support for my decision making at every level. I am enjoying the job more than ever before and I hope I can reward that confidence on the pitch."
Internal investigation
Manchester announced earlier this week they wouldl conduct an internal investigation into Sir Alex's transfer dealings in an attempt to appease Magnier and his business partner.
The Irish multi-millionaire is locked in a legal battle with his former friend, Ferguson, over a share of the stud fees in the champion racehorse Rock of Gibraltar.
Ferguson, who changed his mind about retiring in 2001, had reportedly been offered a four-year deal worth five million pounds (49.14m) a year backdated 12 months to earn the Scot a total package of 25 million pounds until Magnier intervened.
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