I have to say itcseems a perverse position to take when ruling out any potential managerial appointment, due to someone being under contract.
You could apply the same principle to players too, but we don't.
The best managers are nearly always tied to a contract, as are the best players and for very good reason.
Clubs who lose managers are always compensated financially, I don't see why we would limit our ability to recruit the best possible manager, due to them being on a co tract elsewhere, its limiting our competitiveness in the market.