Manchester United handed “worsened” Premier League points deduction update after Erik ten Hag sacking

Manchester United have been handed an update on any potential Premier League points deduction following Erik ten Hag’s sacking in October.

At the end of October, Manchester United announced that they had decided to sack Erik ten Hag as the club’s manager following a 2-1 loss against West Ham United in the Premier League.

The loss had left United 14th in the competition, while they were sat 21st in the Europa League, leading many to feel that the Dutchman could not deliver despite his contract being extended in the summer.

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United then chose to hire Rúben Amorim as the side’s new head coach, with those such as Ruud van Nistelrooy and Rene Hake also departing Old Trafford as a new backroom staff was hired.

Subsequently, it was revealed that United’s decision to axe Ten Hag and his staff cost £10.4 million, including compensation for the other departing staff members. They also spent a further £11 million to release Amorim and his staff from their Sporting CP contracts.

Man United’s points deduction update

United, who are already dangerously close to tipping over the wrong side of the Premier League’s Profit and Sustainability Rules (PSR) line, had to therefore shell out over £20 million in order to change their coaching staff, prompting worries about potential PSR punishments.

It’s already been proved that the league are ready to hand out points deductions if needed, with Everton an example of this, as well as Leicester City facing potential problems next season.

Former Man City financial adviser Stefan Borson, speaking to FootballInsider, has explained that the club’s PSR position has now worsened following the October decision.

The club’s announcement of their first quarter results, ending 30 September, revealed their overall revenue fell to £143.1million, down from £157.1million for the same period last year, which came even before Ten Hag’s sacking.

“What they do is they confirm the revenue guidance and the adjusted EBITDA, so the adjusted earnings,” Borson explained.

“The problem is the adjusted earnings is adjusted for all sorts of actually relevant things for PSR. Although the adjusted earnings might not have changed, the PSR position has changed quite a bit.

“The PSR position has worsened quite a bit because they have spent something like £30 million in the first quarter, plus the period since the first quarter up to today, they have spent about £30 million on exceptional expenses.

“Those are effectively redundancies, plus the redundancy of Ten Hag and the hiring of the new manager Amorim. That totals about £30 million.”

Previous reports indicate that United are still confident that they will be able to avoid any significant punishment, although it has been stated that they may have to sell Academy players such as Marcus Rashford to make sure they are in the clear, as their sales represent pure profit on the books.

Last summer, the club sold Scott McTominay to Napoli for around £30 million, which freed up funds to bring Manuel Ugarte in from French side Paris St. Germain. Without this pure profit, the move for the Uruguayan international would not have been possible.

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