REPORT: Manchester United in danger of PSR breach following disappointing start to season

Manchester United reportedly face the risk of violating the Premier League’s Profit & Sustainability Rules (PSR) if they do not qualify for next season’s Champions League, Soccernet.football reports.

Missing out on Champions League football for another year could severely impact the Red Devils’ finances. Their latest annual report highlights the consequences of not qualifying for UEFA’s top competition this season.

United generated £93.1 million from Champions League broadcasting and match-day revenue in the 2018/19 season, but this figure dropped to £37.5 million in 2022/23 when they only qualified for the Europa League.

According to reports from The Times, if United fail to qualify for the Champions League next season, they would incur a £10 million penalty clause with Adidas, as stipulated in their contract. The club would also forfeit millions in broadcasting revenue and match-day income.

In September, Manchester United reported a £113.2m loss for the 2023/2024 season, marking their fifth consecutive year of net losses.

The club hasn’t turned a profit since 2019, raising concerns about potential breaches of Profitability and Sustainability Regulations (PSR).

This means United could jeopardize their ability to attract top-class players and sponsors, adding further strain to their financial position. They 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.”

Their 2024/2025 campaign has also started poorly, with only two wins from six matches. Based on their current form under Erik ten Hag, they appear likely to struggle in securing a place among Europe’s elite.