MANCHESTER UNITED risk facing huge financial challenges if they go another season without Champions League football.
The Red Devils failed to earn a spot in Europe’s elite competition last season after finishing eighth in the Premier League table.
Despite enduring one of their worst campaigns, they managed to earn Europa League qualification by winning the FA Cup.
However, securing Champions League football this time around will be imperative for the club’s financial status.
Failing to finish in the top four would result in a £10million penalty clause being invoked ahead of the 2025-26 season.
When Man Utd penned a 10-year partnership extension with Adidas last summer, it was agreed that failure to qualify for the Champions League on two consecutive occasions would lead to a 30 per cent reduction in annual payments.
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United will also be penalised for every other season they fail to earn a spot.
On top of that, tens of millions more will be lost in broadcasting deals and match day revenue.
The Red Devils earned £93.1m from their 2018-19 Champions League run, which ended in the quarter-finals.
That figure dropped to £37.5m during the 2022-23 campaign, when they were in the Europa League.
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United’s latest annual report reads: “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.
“Moreover, because of the prestige associated with participating in the European competitions, particularly the Champions League, failure to qualify for any European competition could negatively affect our ability to attract and retain talented players and coaching staff, as well as supporters, sponsors and other commercial partners.”
Man Utd reported a net loss of £113.2m for the 2023/24 financial year.
It takes the club’s losses over three years to £254.7m.
While the Red Devils have to qualify for the Champions League next season, they face a huge uphill battle.
Erik ten Hag and his players have endured a poor start to the season and sit 12th in the table.
The Dutchman’s future is now in doubt, with two huge fixtures against Porto and Aston Villa scheduled for this week.
Source: Soccer - thesun.co.uk
