What Erik ten Hag Manchester United sack decision means for FFP and points deduction fears

Manchester United have a major decision to make on the future of manager Erik ten Hag as the end of a difficult season draws closer.

New co-owner Sir Jim Ratcliffe and his Ineos group are beginning to transform United's footballing operations with several big changes already made. Omar Berrada will arrive as the club's new CEO this summer whilst Jason Wilcox has joined as technical director from Southampton.

United are also looking to agree compensation with Newcastle United for sporting director Dan Ashworth who is currently on gardening leave. And the future of Ten Hag hangs in the balance amid a campaign which currently sees them sit seventh in the Premier League after crashing out of Europe in the group stages. They also narrowly avoided a humiliating collapse against Coventry City in the FA Cup on Sunday.

READ MORE: Zinedine Zidane's 'stance' on next manager job

READ MORE: Who could replace Erik ten Hag at Manchester United?

One careful consideration that has to be made by United is the league's Profit and Sustainability Rules (PSR) with sacking Ten Hag and his coaching staff set to cost around £10 million, according to the Times. Rules state clubs are only allowed to lose £105m across a rolling three-year period, or £35m each season.

Punishments for breaking PSR have included points deductions with both Everton and Nottingham Forest punished this season. However, Chief Business of Football Writer for Reach PLC Dave Powell has shared why the situation at Old Trafford differs from other clubs.

“It is important to look at Manchester United’s position a little differently when it comes to PSR," he said. “The £105m upper threshold limit is only allowed based on £90m of owner funding over the three-year period, so