
MANCHESTER UNITED stands to forfeit £10 million in projected revenue if their current situation persists.
The Red Devils are experiencing a challenging season, currently sitting in 14th place on the Premier League table.
Ruben Amorim has yet to improve the team’s performance, with a third straight defeat on Thursday leaving United 12 points behind fourth-placed Nottingham Forest.
The likelihood of Man Utd securing a Champions League spot this season appears increasingly dim, a setback that could greatly affect the club’s financial stability.
As reported by The Times, United’s agreement with kit supplier Adidas comes with a clause that incurs a £10 MILLION penalty for each season they fail to qualify for Europe’s top competition.
This significant financial loss would be further aggravated by decreased broadcasting and matchday income.
The club faces the risk of violating Financial Fair Play (FFP) regulations and has implemented various cost-reduction strategies since the appointment of Ineos chief Sir Jim Ratcliffe.
Sun Sport disclosed that Ratcliffe and the club have reduced funding for the Association of Former Manchester United Players, a charity established in 1985 to support former players who did not benefit from today’s lucrative contracts.
Ratcliffe’s further cost-saving measures include revoking credit cards for senior staff, prohibiting private car usage by staff, and even requesting assistance from Manchester City to transport United players to the Ballon d’Or ceremony.
Manchester United is employing various strategies to lessen the impact of potential Champions League exclusion.
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The club’s annual report highlights that player salaries are contingent upon their participation in European competitions.
The report mentions, “Failing to qualify for the Champions League would result in a considerable decline in revenue for every season our men’s first team is absent from the competition.”
Ruben Amorim acknowledges the possibility of losing his job at Man Utd if results don’t improve, as fans grow increasingly ‘weary’ of the team’s persistent difficulties
“To mitigate this impact, most contracts for our men’s first team incorporate clauses for increased pay that hinge on participation in the Champions League group stage.”
Former Everton chairman Keith Wyness expressed that United is nearing the threshold regarding Profit and Sustainability regulations (PSR) and FFP.
In an interview with Football Insider, Wyness noted: “Yes, they are indeed right on that boundary concerning PSR.
“What’s intriguing is that they are listed on the New York Stock Exchange. If there is a genuine risk of them breaching PSR, it must be reported to the market.
“This scenario is quite fascinating. They’ve had a very slow start to the season.
“If they do not qualify for the Champions League next year, unless Amorim manages a significant turnaround in the second half of this season, it will heighten the concern regarding PSR.
“They find themselves in a precarious position, meaning Amorim must deliver results. There has been pressure on him since the beginning.”
United needs to enhance their performance on the field to safeguard their financial well-being.
For Amorim and his demoralized squad, the challenge continues on Monday against a rejuvenated Newcastle United side currently in good form.
The pressure remains as they will also confront Liverpool, Arsenal, and Brighton shortly after.