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Manchester United would reportedly face a challenge in complying with the Premier League’s Profit and Sustainability Rules should they miss out on Champions League qualification.
United have endured a tumultuous start to the season that has seen them lose three of their opening six Premier League clashes.
Over the weekend, the Red Devils suffered a devastating 0-3 loss at the hands of Tottenham Hotspur that has led to renewed speculation over the future of Erik ten Hag at Old Trafford.
At the moment, United lie in 13th place in the table and are six points adrift of Unai Emery’s Aston Villa in fourth position.
Martyn Ziegler of The Times reports that United are in line to lose millions of pounds if they fail to qualify for the Champions League ahead of next season and if so, the club might find itself in trouble with PSR.
Ziegler reveals, “Manchester United face fresh Profitability and Sustainability Rules (PSR) challenges if they go another year without playing in the Champions League.”
“That [missing out on the Champions League] would result in a £10million penalty clause under United’s new deal with Adidas being invoked for 2025-26 — and for any future season they are not in the Champions League — with tens of millions more lost in broadcasting and match-day income.”
United’s annual report notes that the players currently on the club’s books receive salary increases that are dependent on whether or not the Reds are in the Champions League.
The report further mentioned, “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.”
The annual report also highlighted the drop in revenue caused by missing out on Champions League qualification. The 20-time English champions’ combined broadcasting and match day revenue totalled £75million for the 2021/22 season when they reached the Champions League Round of 16. This figure stood at £53.8m last season when Ten Hag’s men were eliminated in the group stage.
In contrast, this number fell to £37.5 million during the 2022/23 campaign when United competed in the Europa League and were eliminated in the quarter-final.
Last season, United avoided breaching PSR regulations despite reporting a huge £113.3million. Top-flight outfits are permitted a loss of up to £105m over a three-year period but according to the figures United published last month, the club are above that mark with a total in excess of £250m.
Ziegler explains that United were permitted to claim a Covid loss of £40million for the 2021/22 term. This is thought to be double all the other 19 Premier League clubs combined.
As per Ziegler, ” United claimed the £40million because of the cancellation of their summer tour and bad debts caused by a commercial partner insolvency.”
Of course, one way United can gain entry into next season’s Champions League and avoid the pressures of PSR is by winning the 2024/25 Europa League.
The Reds will undoubtedly be aiming to take a significant step towards this objective on Thursday, when they take on Portuguese giants Porto on Thursday at Estádio do Dragão.
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2024-10-01 20:00:56
