REVEALED: Why Man Utd ‚face challenge‘ to avoid PSR breach after poor start to season
Manchester United are said to be at risk of breaching the Premier League’s Profit & 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, with their latest annual report revealing the consequences of failing to qualify for UEFA’s top competition this season.
As per reports from The Times, United’s inability to qualify for the Champions League next term would lead to a £10m penalty clause with Adidas – as per their contract. The club would also miss out on millions of broadcasting funds, as well as match-day income.
United also risk damaging their ability to attract high-profile players and sponsors, further impacting their finances.
The report reveals that while United made £93.1m from Champions League broadcasting and match-day revenue in the 2018/19 season, they fell to £37.5m in 2022/23 when they only earned a spot in the Europa League.
While failure to qualify for the Champions League would result in struggle to comply to UEFA’s Financial Fair Play regulations and the Premier League’s PSR, United would also be unable to offer their players any pay rises.
The annual report reads: „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.
„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.“
United announced in September that they had accumulated a loss of £113.2m for the 2023/24 season – revealing a net loss for a fifth-successive year. In fact, the club have not made profit since 2019, increasing their chance of being at risk of PSR breaches.
They have endured a poor start to the 2024/25 campaign, taking just two wins from six fixtures, and their current form under Erik ten Hag suggests they will struggle to earn a spot amongst Europe’s best.