Soccer

Man Utd face major financial issue if they fail to qualify for Champions League

Manchester United could miss out on important sponsorship money if they fail to claim Champions League football again for next season.

The Red Devils face missing out on Europe’s premier competition for the fourth time in several years this season.

And should they finish outside the top four this term, it would make it two consecutive years without Champions League football at Old Trafford.

Ole Gunnar Solskjaer has overseen the club’s worst start to a league season for 30 years with the team six points behind fourth-placed Chelsea and 38 behind league leaders Liverpool.

  • Leeds fans troll Man Utd with Ed Woodward chant at Old Trafford in youth game

  • Chelsea fear Liverpool will derail their Timo Werner transfer plan this summer

They are still in the Europa League but failure to secure Champions League football next season could spell big problems for Ed Woodward and the Glazers.

Sponsors are becoming more and more unwilling to back the 13-time Premier League champions, who have been way off the pace ever since Sir Alex Ferguson retired.

According to Goal, United make very little profit despite their massive revenue streams due to the cost of staff wages, transfers and debt.

And it is believed the club would immediately lose £20m from their kit deal with Adidas by not making into the Champions League next year.

  • Real Madrid eye transfer raid for Arsenal sensation Gabriel Martinelli

However, there are other contracts worth hundreds of millions that will come up for renewal in the coming years and there are other more successful teams who would gladly take them from United.

Three weeks ago, accountancy firm Deloitte published its yearly Football Money League, and made a point that should concern United's fans, owners and players.

As a result of losing Champions League football for a second consecutive season, there will be a decline in forecasted revenue to around £560-580m ($731-758m), which is down from last year's £627m ($819m).

The report adds that there is a £200m overdraft to pay off in 2025, as well as a bond of around £385m in 2027 and about £200m to pay in 2029.

Read More

Today's top football stories on Daily Star

  • Ighalo told how many goals he needs
  • Liverpool could lose Adrian
  • Barca confirm Aubameyang interest
  • Messi has 'one foot out door' at Barca

United would be able to refinance these, but with no Champions League football available, they could be forced into higher interest rates or make their wages reflect the drop in revenue.

As a result United could be forced to drastically cut back on their wage bill and transfer outlay.

Unless high salaries for players and transfer spending is significantly reduced, profit will be wiped out and the ability to service debt will be made far harder.

If United cannot offer new players higher salaries, they will then have to rely on their currently non-existent transfer expertise.

Source: Read Full Article