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Manchester United news: Club will have to pay Louis van Gaal £5m to sack him in the summer

Van Gaal will continue to be paid until the end of his contract next year

Jack de Menezes
Friday 06 May 2016 08:26 BST
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Manchester United will have to pay Louis van Gaal £5m if they sack him in the summer
Manchester United will have to pay Louis van Gaal £5m if they sack him in the summer (Getty)

Manchester United will have to pay manager Louis van Gaal £5m if they decide to sack him this summer after the details of the Dutchman’s contract at Old Trafford were revealed.

The Times obtained the financial details of Van Gaal’s contract, which has another year left to run after the end of this season, and revealed that he also stands to lose £1m in wages if United fail to secure a top-four finish this season.

It’s been widely reported that Jose Mourinho could take over if Van Gaal is dismissed in the summer given that the former Chelsea manager has his heart set on the job at Old Trafford, but Van Gaal could yet salvage his future with victory on the FA Cup final against Crystal Palace and a top-four finish to qualify for next season’s Champions League.

The contract reveals that Van Gaal is currently paid £8m-a-year, although that figure is made up of a number of performance-based rewards and other clauses. The 64-year-old is guaranteed a £3.3m salary, with and additional £2m coming in loyalty payments, £1.6m for image rights and the remaining £1.1m a reward for ensuring United qualify for the Champions League – something Van Gaal achieved last season.

Should United face the axe this summer, United will continue to pay Van Gaal his salary, including both image and loyalty bonuses, unless he takes up another job before the expiration of his contract next summer.

United are currently fifth in the Premier League table, four points behind rivals Manchester City with a game in hand. With City taking on Arsenal this weekend, a defeat for the fallen Champions League semi-finalists would open the door for either United or West Ham to seize fourth place, given the two sides meet next Tuesday in what could prove to be a Champions League shootout.

There are additional clauses in Van Gaal’s contract that can increase his £8m salary, although he is yet to trigger any during his time with the club. Van Gaal would earn £400,000 for winning the Europa League or FA Cup – something he can achieve this season – while reaching the Europa League final would have brought in £200,000, though there is no bonus for reaching the FA Cup final.

Winning either the Premier League or Champions League would have seen Van Gaal rewarded with a £1.5m payments, while finishing second would see that figure halved.

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