Man Utd face £3m compensation bill to Newcastle if they pursue Eddie Howe

Manchester United could face a compensation bill of around £3m to Newcastle United if they appoint Eddie Howe as their next manager, according to Chronicle Live, with the former Newcastle head coach understood to be on a two-man shortlist alongside ex-Germany boss Julian Nagelsmann.

Howe stepped down from his role at St. James’ Park in August after five years in charge, with Newcastle releasing a statement confirming his departure alongside backroom staff members Jason Tindall, Graeme Jones, Stephen Purches, Simon Weatherstone, and head of performance Dan Hodges. Despite leaving of his own accord, Howe had several years remaining on a contract that was extended in summer 2024, earning him roughly £6m per year — meaning a formal settlement with Newcastle would be required before he could take charge elsewhere.

Chronicle Live reports that Newcastle expect a “significant pay-out” from any club that appoints Howe, with talkSPORT placing that figure at approximately £3m. The potential liability could increase further given that United may also need to account for the release of Howe’s backroom staff, who are understood to be open to returning to management as a group.

Newcastle were reportedly reluctant to lose Howe when he informed the board of his intention to leave, but ultimately respected his decision. The club’s August statement described his contribution as “extraordinary.”

At Old Trafford, current manager Michael Carrick is expected to be given the opportunity to stabilise results before any permanent appointment is made. Carrick is set to take charge for United’s upcoming fixture against Chelsea at Stamford Bridge, with the club’s hierarchy monitoring the situation closely before committing to a managerial search.