Man Utd ‘close to the line’ on FFP as Ten Hag compensation fee ‘confirmed’

Jason Soutar
Former Man Utd manager Erik ten Hag on the bench before a match
Former Man Utd manager Erik ten Hag on the bench before a match

Erik ten Hag will be paid ‘about £15million’ in compensation after being sacked by Manchester United, according to reports.

Man Utd sacked the Dutch manager on Monday morning following Sunday’s 2-1 Premier League defeat at West Ham.

A fourth loss in nine league matches left the Red Devils 14th in the top flight, while they have drawn all three of their opening Europa League matches, leaving them 21st in the 36-team league phase table.

Sporting Lisbon head coach Ruben Amorim will reportedly replace Ten Hag in the Old Trafford dugout after winning two Portuguese league titles in four years.

It has been reported that Amorim will not change from his 3-4-3 formation that has been so successful in Portugal, meaning big chances on the pitch are coming if he is appointed.

Man Utd will have to pay around £8.3m in compensation to land the 39-year-old and face further financial obstacles.

Reports in Portugal suggest Amorim’s coaches have release clauses worth a total of £4.1m and the Premier League giants will have to pay even more to waive the manager’s 30-day notice period.

We all know Man Utd are going to pay Sporting what they want but it is unclear when they will, with some bosses at Old Trafford eager for the Portuguese to be in charge of Sunday’s league match against Chelsea.

Regardless, changing managers will be an expensive operation and one that has left egg on the faces of the new ownership group, led by British billionaire Sir Jim Ratcliffe.

MORE ON MAN UTD FROM F365
👉 Ruben Amorim to Man Utd will delight Gary Neville as star player set to lose starting spot
👉 Manchester United still need to solve their ‘biggest problem’: Bruno Fernandes
👉 Five Sporting players Ruben Amorim should bring with him to fix Manchester United

Ratcliffe and his minions decided to trigger a 12-month extension in Ten Hag’s contract at the end of last season, rather than sack him after the club’s worst finish in Premier League history, ironically increasing his compensation package which he will receive having been sacked less than three months into 2024/25.

In a huge piece from The Athletic, it has been revealed that Man Utd are ‘close to the line on financial regulations’ after it was ‘confirmed’ they will pay Ten Hag a compensation fee in the region of £15m.

The report states:

A figure of about £15million ($19.5m) has been confirmed as accurate by people briefed on the matter, who like others in this article will remain anonymous to protect relationships. That sum, while giving pause for thought due to United’s recent record of making losses, combined with financial regulations imposed by UEFA (European football’s governing body) and the Premier League, was not considered prohibitive to a change. The cost could be swallowed if those in charge judged the sporting case compelling. And United’s positions of 14th in the 20-club Premier League and 21st in the 36-team Europa League forced the issue, in their eyes.

United staff made further background checks on Amorim more recently, were informed he would be willing to leave Sporting despite their Champions League campaign, and came to an understanding of the fee to prise him away from the Portuguese club. A release clause of around €10million (£8.3m/$10.8m) was not seen as an obstacle. Berrada is a huge admirer of Amorim and has been a key driver behind the push to appoint him at United, although it is a collective call.

The combined cost of Ten Hag’s departure and Amorim’s potential arrival does push United close to the line on financial regulations, according to those with knowledge of the situation, but Ratcliffe has privately indicated a desire to test the limits and figure out a solution later.