Man Utd ‘in danger’ of ‘£10m penalty’ as INEOS ‘face fresh PSR challenge’ amid CL factor

According to reports, Manchester United ‘face fresh Profit and Sustainability (PSR) rules challenges’ if they miss out on next season’s Champions League.

The Premier League clubs are permitted to lose a maximum of £105m over three years, but Man Utd posted net losses of £113.2million at the end of the 2023/24 campaign.

However, unlike Everton and Nottingham Forest, the Red Devils avoided a points deduction as certain losses are deemed ‘allowable’ such as infrastructure, youth team and women’s team spending.

Last month, a club statement read: “The club remains committed to, and in compliance with, both the Premier League’s Profit and Sustainability Rules and UEFA’s Financial Fair Play Regulations.”

Man Utd were negatively impacted by their failure to qualify for the Champions League last season and a new report from The Times claims they ‘face fresh Profit and Sustainability Rules (PSR) challenges if they go another year without playing’ in the elite club competition.

READ: How Moyes, Hodgson, Mourinho, Rodgers fared after starts as bad as Ten Hag’s Man Utd

The optimism at Old Trafford raised in the summer as they had a positive transfer window, but they have endured a miserable start to the season under Erik ten Hag.

The Dutchman is among the favourites to be the next Premier League sacked as Man Utd have lost three of their opening six matches. This leaves them six points adrift of fourth-placed Chelsea.

It is noted that Man Utd are ‘in danger’ of a ‘£10m penalty’ if they miss out on the Champions League again. The report explains.

‘[Failure to qualify for 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.

‘In the 2018-19 season, United made £93.1million from the Champions League in combined broadcasting and match-day revenue when they reached the quarter-finals. However, revenue from European competition dropped by £55million to £37.5million for 2022-23, when they were in the Europa League.

‘Two seasons out of the Champions League would also mean another challenge for United to comply with Uefa’s Financial Fair Play (FFP) regulations and the Premier League’s PSR.’

United’s 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.”