Man Utd Pays £14.5m Severance to Ten Hag & Staff

16th Apr, 2025

Introduction

Manchester United has officially disclosed the cost of parting ways with Erik ten Hag, his coaching team, and other key staff.
This comes from their most recent financial accounts, where the payout is listed as an “exceptional item.”
The figure is striking: £14.5 million.
Understanding this number helps shed light on United’s financial strategy, their risk tolerance, and what the club is willing to spend — even in failure.

What Man Utd Confirmed — The Severance Figures

According to United’s latest quarterly report by itv News, the club recorded £14.5 million in costs tied to dismissals.
These are listed under “exceptional items” — meaning they are not part of the club’s routine operating costs.
This total covers:

  • Erik ten Hag’s severance

  • His coaching staff’s pay-offs

  • The exit of sporting director Dan Ashworth
    By confirming this publicly, United gives fans and stakeholders a clearer view of the financial consequences of their management decisions.

Breakdown: Ten Hag vs Coaching Staff vs Ashworth

Within the £14.5 million:

  • £10.4 million was paid for Ten Hag and his coaching team.

  • £4.1 million was paid in relation to Dan Ashworth, the sporting director.
    Thus, the bulk of the cost was tied to the manager and his staff, not just Ashworth.

Some sources convert that total into euros: reports put it at about €17.5 million, reflecting currency changes.
This breakdown highlights how much United was prepared to spend simply to undo prior decisions — both on the managerial front and the sporting director level.

Why the Payout Was So High

Several factors made this severance package expensive:

  1. Contract Terms: Ten Hag had a contract running beyond the time of his dismissal, so United needed to honor the remaining value.

  2. Coaching Team Included: It wasn't just Ten Hag; the compensation covered his broader backroom staff.

  3. Sporting Director Exit: Ashworth’s departure added a sizable chunk. His hiring and exit in quick succession increased the cost.

  4. Exceptional Item Accounting: By grouping the payout under “exceptional items,” United signals this cost was non-recurring — though still significant.

These elements combined meant the exit of Ten Hag and his team was not just a sporting decision but a major financial one.

Financial Impact on Manchester United

The £14.5 million payout played a role in United’s £27.7 million loss in the quarter ending December 31, 2024.
Their revenue declined by 12% year-on-year in that period.
Interest costs on the club’s debt — including legacy debt from past takeovers — remain very high, compounding the financial strain.
Some analysts argue that the decision to sack Ten Hag was a gamble: expensive now, and only justifiable if United recovers strongly on the pitch.

What This Means for United’s Future

By confirming the payout, United sends a message: they are serious about reshaping their leadership.
But this also raises questions:

  • Can the club afford to make high-risk managerial changes often?

  • Are such payouts sustainable if performance doesn’t improve?

  • Will investors and fans accept deep financial costs if instability persists?

If United want long-term stability, they may need to balance ambition with financial prudence. Paying big for failure can’t be a repeat strategy.

Conclusion

Manchester United’s decision to pay £14.5 million to part ways with Erik ten Hag, his coaching staff, and Dan Ashworth is more than a headline — it’s a sign of the club’s willingness to spend heavily, even in disappointment.
The detailed breakdown shows where the money went and why: contractual obligations, backroom staff, and rapid turnover.
Financially, it’s a heavy blow, but for United, the real cost will be judged on whether the next hire delivers — or whether more turbulence lies ahead.

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