Shortly after his father celebrated 20 years as manager of Manchester United, Ferguson followed him into football management. In January 2007 he left Wrexham to become player-manager of fellow League Two side Peterborough United. Previous manager Keith Alexander had been sacked after a run of six straight defeats. He led the club to a 10th-placed finish in his first season of management. In his first full season of management, he took Peterborough to second place in League Two, gaining promotion. He was named League Two manager of the month for March 2008, after Peterborough won six games out of eight in the month.
On 23 October 2007, he was arrested on suspicion of assaulting his estranged wife on the driveway of his father's home in Wilmslow, Cheshire. He was released on bail. He appeared at Macclesfield Magistrates' Court on 23 January 2008 charged with common assault, to which he pleaded not guilty. On 10 April 2008 he changed his plea to guilty and was fined £1,500 and ordered to pay £200 in court costs.