Dr Dan: Man United may have pulled off £7.5m FFP dodge after multiple contract developments
Man United have a questionable contract policy – but they may have avoided a financial fair play hit from Ole Gunnar Solskjaer’s dismissal.
So says finance expert and new Football Insider columnist Doctor Dan Plumley, speaking exclusively about off-pitch developments at Old Trafford.
United confirmed that Solskjaer, who signed a contract extension just four months ago, would leave the club with immediate effect on 21 November.
The Sun reported later that day that the Norwegian would pocket £7.5million in severance pay.
Ole’s staffers, Mike Phelan, Kieran McKenna, Richard Hartis and interim boss Michael Carrick were all handed new three-year deals in recent weeks.
The Daily Mail claimed on 22 November that United face paying out further ‘millions’ if they choose to give them the boot too.
Plumley questioned United’s contract policy but explains why pay-off cash may not immediately come out of the FFP budget.
“It seems counter-intuitive,” the Sheffield Hallam University expert told Football Insider correspondent Adam Williams.
“In terms of FFP, it depends on how the pay-off is made up, whether it’s one lump sum or instalments.
“The best way to arrange a contract, especially in football where managers chop and change regularly, is to put in something called ‘liquidated damages’.
“That’s a pre-determined amount of money that becomes payable if you terminate early.
“I don’t know exactly what United have done, but using liquidated damages would mean they have paid a pre-set cost.
“But that pre-set cost may be spread out over a few seasons, in which case it may not count towards FFP all at once.”
United are 8th in the table and have won just one of their last seven league matches.
Carrick did, however, beat Valencia 2-0 in his first game at the helm to secure qualification for the Champions League last-16.
In other news, pundit fears “disaster” for Man United Ed Woodward update from Sky Sports.