Manchester United is in danger of breaching the Premier League’s Profitability and Sustainability Rules if it fails to qualify for next season’s Champions League.
The Red Devils also failed to seal a place in this season’s Europe’s most prestigious club competition after finishing eighth in the Premier League last campaign, and there are already worries they will end up outside of the top four again following their early-season dismal form.
Considering the glamour that’s associated with participating in European competitions, notably the Champions League, it could negatively affect any club’s ability to attract and retain talented players and coaching staff, as well as supporters, sponsors, and other commercial partners.
According to reports, their finances will suffer a huge blow if they fail to qualify for next season’s edition of the Champions League because there’s a clause in the deal signed with the club’s kit manufacturer, Adidas, which would see the club lose £10 million ($13m) if they do not qualify.
The loss, in addition to the hefty massive income they would also lose due to broadcasting and ticket sales, implies that Manchester United will face significant difficulties when it comes to complying with the Premier League’s PSR regulations as well as UEFA’s Financial Fair Play rules.
According to a statement in the club’s latest financial report, the club’s revealed: “Failure to qualify for the Champions League would result in a material reduction in revenue for each season in which our men’s first team did not participate. To help mitigate this impact, the majority of playing contracts for our men’s first team include step-ups in remuneration, which are contingent on participation in the group stage of the Champions League.”
After last week’s 1-1 draw at Old Trafford against Twente, Erik ten Hag’s team are in action again this week when they meet Porto in the Europa League matchday two.
