Manchester United have been informed they will need to pay Newcastle United a multi-million compensation package to appoint Eddie Howe as their next manager, with the former Magpies boss still on the Red Devils' wish-list.
Howe, who was earning £6 million a year on Tyneside, left Newcastle at the end of last season after the club finished 12th in the Premier League without silverware. His exit was only granted on the condition that any early return to management would trigger financial sanctions for his next employer.
Howe's Exit and the Compensation Clause
Newcastle told Howe he was the man to turn things around at St James' Park, but with changes to the club's transfer policy. He would have had less control over recruitment, while a younger squad would be built. Within days of pre-season, having already lost Anthony Gordon and been told Sandro Tonali would be going to Tottenham Hotspur, Howe opted against the challenge of rebuilding the Magpies.
The board accepted his decision, but the exit was not unconditional. Newcastle's stance is that they would never let a talented player walk away mid-contract to land a lucrative free transfer elsewhere, and the same applies to Howe.
Manchester United's Interest and the Cost
Howe has already turned down a job at Champions League club Lens and is on Jason Wilcox's Manchester United wish-list. The Red Devils have been told of the payment required to secure his services.
The news comes as Michael Carrick remains under pressure in the Old Trafford dugout. The Wallsend-born interim boss has told Manchester United he will do whatever is right for the club, even if that means treading water until a new manager is found.
Previous Dealings Between the Clubs
This would not be the first time Sir Jim Ratcliffe has approached Newcastle for staff. In 2024, he moved for Dan Ashworth, saying at the time: "I think it’s a bit silly, personally. I won’t get dragged into that. What I do think is completely absurd is suggesting a man who is really good at his job sits in his garden for one and a half years."
He added: "I think Dan Ashworth is a 10/10 sporting director — one of the best around. He would be very good for Manchester United. It is understandable that somebody like Dan would see the Manchester United job as a very interesting challenge at this stage of his career."
Manchester United eventually paid up for Ashworth, only to pay him off five months later in a costly affair. Newcastle also remain wary of the Red Devils' interest in Lewis Hall, who shares an agent with Howe, reinforcing their determination to stand their ground on compensation terms.
