Ferguson settles dispute

Manchester United manager Alex Ferguson has agreed a deal worth 2.5 million pounds (3.7 million dollars) with major United shareholder John Magnier over the breeding rights to record-breaking racehorse Rock Of Gibraltar it was revealed on Saturday.

The deal is set to be signed on Monday and will bring to an end a bitter dispute that has overshadowed United's season with constant rumours that Magnier -- the most powerful man in the world of racing -- and fellow Irishman JP McManus were building up their stake in the club so as to remove Ferguson from his post.

However the deal is believed to see Ferguson receive a lump sum which will end his association with the horse who won a record seven successive Group Ones in 2001 and 2002.

The 62-year-old Scot had claimed he was due half the lifetime breeding rights estimated in total at 250 million pounds to the Rock when he retired to stud in 2003.

Instead Magnier offered him two covering fees worth 45,000 pounds each a year as he said Ferguson had never paid anything for the horse and had been given it as a present.

Ferguson will have to pay around 400,000 pounds in legal fees out of the one off payment as he had been preparing for a court case, but doing the deal will please the Manchester United board as they had become increasingly concerned by the toll it was taking on the image of the club and its fortunes on the pitch.

According to press reports Ferguson was prepared to go to court next year but was persuaded by United's chief executive David Gill to end it as it was tearing the club apart.

Ferguson made the first peace overture when he rang 55-year-old Magnier -- who is the son-in-law of legendary Irish trainer Vincent O'Brien -- for the first time in nine months at his home in Barbados last Monday and said he was ready to draw a veil over proceedings.