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Why Man United’s FFP status may mean they can’t yet afford £9m Ten Hag pay-off – explained
Manchester United Manager Erik ten Hag  during the Premier League match between Crystal Palace and Manchester United at Selhurst Park on May 06, 20...
Photo by Chloe Knott - Danehouse/Getty Images

The Premier League and UEFA’s spending controls may mean that Man United are unable to sack Erik ten Hag until after the end of the current campaign.

Manchester United will be forced to pay out the remaining 14 months of Dutchman’s contract if they dispose of his services, which looks overwhelmingly likely after his side’s 4-0 humiliation at Crystal Palace on Monday night.

The result at Selhurst Park has brought existing uncertainty around Ten Hag‘s status to a crescendo, with former club Ajax now monitoring his situation in Manchester with a view to a possible reunion.

Erik ten Hag Manager/Head Coach of Manchester United prior to the Premier League match between Chelsea FC and Manchester United at Stamford Bridge ...
Photo by Marc Atkins/Getty Images

Meanwhile, a flurry of high-profile managers have been linked with replacing him, including England’s Gareth Southgate, Brighton’s Roberto De Zerbi and outgoing Bayern boss Thomas Tuchel.

Ten Hag earns £9million per year at Old Trafford, although ESPN report that a clause in his deal means that figure will fall to £6.75m next term due to United’s failure to qualify for the Champions League.

That means that United would save £2.25m if they hold off axing their boss until after the season officially ends – and their precarious FFP status might further incentivise the club to hold out.

Could Ten Hag pay-off push Man United over the FFP edge?

If the United hierarchy decide to bin Ten Hag before the end of the campaign, his £9m pay-off will count towards this season’s domestic and European financial sustainability quotas, previously dubbed FFP.

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As quoted by Reuters, Ten Hag himself claimed that he was keen to sign a striker in January but “there [was] no space for FFP to do something.”

The same lack of FFP wiggle room may mean that Ten Hag’s severance could push them over the edge if triggered before the close of 2023-24.

Under the current Premier League system, clubs are allowed to lose up to £105m over a rolling three-year period provided £90m of that total is covered by an owner.

UEFA’s structure is even stricter, and that could still be a factor in United’s decision over Ten Hag as an unlikely victory in the FA Cup final against Man City would see them qualify for the Europa League.

What is United’s current financial position?

United have lost over £200m over the last three seasons and while their 2023-24 losses will represent an improvement on previous campaigns due to their return to Champions League football, they are still forecasted to post a deficit when they file their accounts.

INEOS Group chairman Sir Jim Ratcliffe pictured during the signing of an investment pact between chemicals group Ineos and the Antwerp harbor, Tues...
Photo credit should read DIRK WAEM/AFP via Getty Images

Dismissing Ten Hag immediately would satisfy the fans calling for his head, but the club will likely push a reduced £6.75m cost into the next three-year FFP cycle and modify next term’s budget accordingly.

There will be no lucrative Champions League football for the Red Devils next season, but a number of the club’s biggest earners are expected to leave with new part-owner Sir Jim Ratcliffe looking to cut costs across the football department and beyond.

That, in theory, will give the club the financial headroom to absorb a Ten Hag pay-off without risking a sanction from the Premier League or UEFA.

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