Manchester United are said to be at risk of breaching the Premier League’s Profit and Sustainability Rules (PSR) if they fail to qualify for next season’s Champions League.
Another season without Champions League Football could prove problematic for the Red Devils’ finances as their latest annual report reveals the consequences of failing to qualify for UEFA’s top competition this season.
According to the reports of The TimesUnited’s failure to qualify for the Champions League next term would trigger a £10m penalty clause with Adidas, according to their contract. The club would also lose millions in broadcasting funds as well as match day revenue.
United also risk damaging their ability to attract high-profile players and sponsors, further affecting their finances.
The report reveals that while United made £93.1m from Champions League broadcast and matchday revenue in 2018/19, that fell to £37.5m in 2022 /23 when he won only one place in the Europa League.
While not qualifying for the Champions League would struggle to meet UEFA’s Financial Fair Play regulations and the Premier League’s PSR, united nor would they be able to offer their players any salary increases.
The annual report says: “The majority of playing contracts for our men’s first team include increases in pay which are dependent on participation in the Champions League group stage.
“Failure to qualify for any European competition could adversely affect our ability to attract and retain talented players and coaching staff, as well as fans, sponsors and other business partners.”
United announced in September that it did it racked up a loss of £113.2m for the 2023/24 season, revealing a net loss for the fifth consecutive year. In fact, the club has not made a profit since 2019, increasing its chances of being at risk of PSR breaches.
They have suffered a poor start to the 2024/25 campaign, with just two wins from six games, and their current form under Erik ten Hag suggests they will struggle to earn a place among Europe’s best.
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