Of course it does. Not giving him a new contract gives the perception that we have zero faith in him. Pretty poor that. Especially where our current players and potential signings are concerned. Ten Hag would have every right to talk to other clubs in order to secure his own future. It may even alter his management and make him think more short term in order to protect himself and his reputation. Just a bad environment really.
Yeah. There's two side of this argument really, which is quite nuanced unfortunately.
If we were a well run successful club with all the footballing structure in place on and off the pitch (like Madrid), we should very rightly tell ETH to honour his contract and do the best of his job in a professional and assertive manner. The issue now is that they have 'objectively' decided to stick with ETH and for the next 12 months to work, they need to plan beyond that. That will require more buy in from ETH because they need to work with the manager that has his fingerprints all over the squad.
I personally hope the new contract thing is the current 'buy in' now, which is say discussions will drag on into the season (or call if a bluff if you will) and allow INEOS to make an ultimate decision to see what the next season would look like under him in January.
However, I'll won't be surprised if they announce a new 2 year deal or something before the season starts. I wouldn't agree with it but I understand why.