Manchester United may face a substantial additional compensation fee if they opt to part ways with head coach Erik ten Hag following their FA Cup triumph. The club is currently conducting a season review to determine Ten Hag’s future after their surprising victory over local rivals Manchester City at Wembley.
Last season, United finished eighth in the Premier League, their lowest position in 34 years, which would typically result in missing out on European competition. Consequently, Ten Hag faced a 25% reduction in his £9 million-a-year salary, bringing it down to £6.75 million. However, United’s 2-1 win over City secured them a Europa League spot for the next season, thus preventing a significant salary decrease for Ten Hag as per his contract terms, as reported by the Daily Mirror.
Similar to many United players, Ten Hag’s contract is structured with performance incentives tied to European competition outcomes, including the Champions League, Europa League, Europa Conference League, or no European competition at all.
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With a Europa League place now secured, any potential compensation payable to Ten Hag by United in the event of dismissal would be closer to his full £9 million-a-year salary, rather than the reduced amount that would have applied had they lost to Pep Guardiola’s side, as many anticipated.
A season review, led by Sir Jim Ratcliffe and his INEOS football operations team, is ongoing, with no specified completion date.
Ten Hag, who is halfway through his three-year contract, has already delivered two trophies for the club – the FA Cup this season and the Carabao Cup last season. Currently on holiday, the 54-year-old Dutchman is unaware of his future at the club following a challenging second campaign marked by injuries to key players.
Manchester United is scheduled to commence pre-season training in a month, with their first friendly match against Norwegian team Rosenborg set for July 15. Speculation surrounds potential replacements for Ten Hag, with names such as England manager Gareth Southgate, Thomas Tuchel, and Mauricio Pochettino being considered as options.