Erik ten Hag likely to facing a 25% reduction in pay as Manchester United manager next season if he manages to retain his position following the team’s failure to qualify for the Champions League, sources informed ESPN.
Ten Hag, who joined Old Trafford after leaving his role as Ajax head coach in May 2022 on a three-year contract, is under increasing pressure as United currently sit in seventh place in the Premier League, trailing by 16 points from a top-four spot.
The scrutiny on Ten Hag has intensified, particularly after the team’s recent collapse at Wembley, where they surrendered a 3-0 lead to Championship side Coventry City in the FA Cup semi-final.
According to sources, United’s new football leadership, led by minority owner Sir Jim Ratcliffe, has been exploring potential alternatives to Ten Hag.
However, despite the disappointing performances and Champions League elimination this season, the club is still preparing for the next season with Ten Hag at the helm.
Ten Hag, 54, like most of his senior players, has a performance-based contract at Old Trafford. Failure to secure Champions League qualification would result in a 25% reduction in salary for the season when the team does not participate in UEFA’s premier competition.
With Ten Hag currently earning £9 million-a-year ($11.2m), missing out on the Champions League next season would see his salary drop to £6.75m. Additionally, it could potentially lead to a less generous compensation package if the decision is made to terminate his contract with one year remaining this summer.
While United still have 18 points up for grabs this season, they are not mathematically out of contention for a top-four finish.
However, if they fail to secure a win against Sheffield United, their faint hopes of qualifying for the Champions League would be dashed, resulting in the confirmed 25% salary reduction for next season.