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Manchester United to lose £10m for every Champions League qualification failure

Man United to lose £10m for every Champions League qualification failure
© Reuters
Manchester United will be hit with a £10m penalty for every season that they fail to qualify for the Champions League under the terms of a new kit deal with Adidas.

Manchester United will be hit with a £10m penalty for every time that they fail to qualify for the Champions League under a new agreement with kit suppliers Adidas.

Formerly guaranteed participants in Europe's premier competition, the Red Devils were unable to force their way into the 2022-23 edition but returned to the top table with a third-placed Premier League finish last season.

However, Erik ten Hag's men suffered a chastening group-stage exit, having only accumulated four points from six matches against Bayern Munich, Copenhagen and Galatasaray, thereby also missing out on a spot in the Europa League.

Back-to-back Champions League qualifications are a long shot for Ten Hag's men, who are sixth in the Premier League table with 10 games left to play and have an eight-point gap to make up to fourth-placed Aston Villa.

Furthermore, Tottenham Hotspur could open up a nine-point lead over Man United in the race for fourth if they win their game in hand, although another spot in the Champions League could open up for English teams based on UEFA coefficients.

Manchester United's Bruno Fernandes celebrates scoring their first goal with teammates on March 9, 2024© Reuters

With Arsenal, Manchester City, Liverpool, West Ham United and Aston Villa still competing on the continent, fifth place could very well suffice for CL qualification, and Man United now have another financial incentive to ensure a return to the coveted tournament.

As mentioned in their latest half-yearly financial accounts, a new 10-year kit deal with Adidas will come into effect in 2025, when their current, £750m agreement with the sportswear brand will come to an end.

The renewal is worth £90m per annum, but as part of the terms, Man United will take a £10m hit for every season that they fail to qualify for the Champions League, which represents a change to their current agreement.

At the moment, the Red Devils do not receive a financial penalty for one season of missing out on the top four, but they are hit with a sanction if they fail to qualify for two successive seasons or more.

Since the original 2015 deal came into effect, the 1999 and 2008 winners have never gone two successive seasons without finishing in the top four of the Premier League, meaning that they have not suffered that economic hit yet.

Manchester United manager Erik ten Hag pictured on February 1, 2024© Reuters

With the renewal not coming into effect until 2025, the Red Devils will also be safe from such losses this season thanks to their third-placed Premier League finish in 2022-23.

"As a result of the men's first team qualifying for the 2023-24 Champions League, no deductions are due under the original term," the financial report read.

"Under the extended term, this clause has been amended to state that a £10 million deduction will be applied for each year of non-participation in the UEFA Champions League."

On the other hand, both the men's and women's teams are in line for bonuses of up to £4.4m should they win their respective top-flight titles, FA Cup crowns or any European tournament.

Man United will bid to take another step towards FA Cup glory on Sunday, hosting Liverpool in their blockbuster quarter-final at Old Trafford.

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