MANCHESTER UNITED could potentially forfeit £10 million in anticipated revenue if their current troubles persist.
The Red Devils are having a challenging season, currently placed 14th in the Premier League standings.
Ruben Amorim has not yet been able to improve the team’s performance, with a third consecutive loss on Thursday leaving Manchester United 12 points behind fourth-placed Nottingham Forest.
The possibility of Man Utd securing a Champions League spot this season appears increasingly slim, a setback that could have a profound effect on the club’s financial stability.
As per The Times, United’s agreement with kit supplier Adidas includes a penalty clause that entails a loss of £10 MILLION for each season they fail to qualify for Europe’s elite tournament.
This substantial financial hit would be exacerbated by diminished broadcasting and match-day income.
The club is in danger of violating Financial Fair Play (FFP) regulations and has initiated several cost-saving measures since the hiring of Ineos chief Sir Jim Ratcliffe.
Sun Sport revealed that Ratcliffe and the club have reduced funding for the Association of Former Manchester United Players, a charity established in 1985 to assist former players who have not profited from the lucrative contracts seen today.
Ratcliffe’s additional cost-cutting measures include canceling credit cards for senior staff, prohibiting staff from using private cars, and even requesting complimentary transport for United players to the Ballon d’Or ceremony from rival Manchester City.
Manchester United has employed various measures to cushion the impact of a potential Champions League exclusion.
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The club’s annual report reveals that player salaries fluctuate based on their involvement in European competitions.
It notes, “Failing to qualify for the Champions League would result in a significant loss of revenue for each season our men’s first team does not participate.”
“To alleviate this situation, most contracts for our men’s first team feature clauses that stipulate increased pay based on participation in the Champions League group stage.”
Former Everton chairman Keith Wyness commented that United is nearing the limit concerning Profit and Sustainability regulations (PSR) and FFP.
In statements to Football Insider, Wyness observed: “Yes, they are indeed right on that boundary concerning PSR.
“What’s noteworthy is that they are listed on the New York Stock Exchange. If there’s a legitimate risk of them breaching PSR, it will need to be disclosed to the market.
“This situation is quite compelling. They’ve begun the season sluggishly.
“If they do not qualify for the Champions League next year, unless Amorim orchestrates a significant turnaround in the latter half of this season, it will intensify the pressure regarding PSR.
“They find themselves in a precarious position, so Amorim must deliver results. There has been pressure on him from the beginning.”
United needs to enhance their performance on the pitch to safeguard their financial stability.
For Amorim and his low-morale squad, the upcoming challenge is on Monday against a revitalized Newcastle United, who are currently performing well.
The pressure continues, as they will also compete against Liverpool, Arsenal, and Brighton shortly thereafter.