Disaster for Ineos as Old Trafford job cuts do not even cover cost of sacking Erik ten Hag and Dan Ashworth

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Manchester United have confirmed the exact cost of sacking Erik ten Hag and his staff this season.

Ahead of the FA Cup final last season, reports suggested Erik ten Hag would be sacked regardless of the result.

However after Manchester United beat Manchester City at Wembley, Ineos decided to keep hold of Ten Hag and offer him a one-year contract extension.

In an interview with The Athletic, Raphael Varane said he expected Ten Hag to be sacked after explaining that he had lost his connection to the dressing room, but the Dutchman was given another chance. In hindsight, that was a big mistake.

After a poor start to the season, Ten Hag was sacked in October and replaced by Ruben Amorim. United’s new coach has now been thrown into an incredibly difficult scenario with no money to spend on new signings.

United’s PSR struggles are partly because of the money spent sacking Erik ten Hag.

How much it cost Man United to sack Erik ten Hag

Manchester United released their latest club accounts for the final three months of 2024 on Wednesday.

Within the report, the club revealed just how much compensation was paid out to sack Ten Hag and sporting director Dan Ashworth, who was only at the club for five months.

• Sir Jim Ratcliffe’s role in Dan Ashworth leaving Man United as sporting director

United paid around £2.5m to hire Ashworth, but club chiefs quickly decided that he wasn’t going to be a part of the long-term project.

United’s financial figures reveal that a staggering £14.5m was spent sacking Ten Hag and Ashworth this season.

As per the Daily Mail’s Chris Wheeler, around £4.1m of that figure was compensation paid to Ashworth despite his short stint at the club.

To add more context to those figures, Sir Jim Ratcliffe cut 250 jobs at United in July and The Guardian report that those redundancies only saved United around £10m.

Ratcliffe is planning more job cuts at United as he continues his cost-cutting measures.

How Erik ten Hag’s compensation compares to other Man United managers

The millions forked out to sack Ten Hag adds to the pile of cash spent sacking managers over the past decade.

In United’s end-of-year accounts in 2022 revealed exceptional costs of £24.7m which included compensation to Ole Gunnar Solskjaer and Ralf Rangnick and some of their backroom teams.

READ MORE: Erik ten Hag leaves door open to controversial coaching return in Netherlands after Manchester United exit as approach received

According to Sky Sports, Jose Mourinho was paid £19.6m in compensation when he was sacked in 2018.

When Louis van Gaal was sacked after the FA Cup win in 2016, BBC Sport report that United paid the Dutch manager £8.4m in compensation.