Manchester United have admitted that they are at risk of breaching spending rules in a letter to fan groups, which could lead to a further increase in ticket prices and the departure of academy products.
The Premier League's Profit and Sustainability rules allow clubs to make losses up to £105m over three years.
Man United faced huge criticism when they recently decided to increase ticket prices to £66 per match, including for children, while there have been various cuts in the workforce since Sir Jim Ratcliffe's arrival as a minority shareholder.
The 20-time English champions have admitted that "difficult choices" have to be made due to the fact that the club are at risk of breaching PSR rules.
"If we do not act now, we are in danger of falling to comply with PSR/FFP requirements," the club said in a letter, which was issued in response to fans groups The 1958 and Fan Coalition 58.
"We are currently making a significant loss each year - totalling over £300m in the past three years. This is not sustainable.
"We will have to make some difficult choices. That has included a significant reduction to our workforce as well as cuts across many areas of spend across our club.
"We do not expect fans to make up all the current shortfall - but we do need to look at our ticketing strategy to ensure we are charging the right amount, and offering the right discounts, across our products for our fans."
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Will Man United sell Garnacho before end of January window?
Alejandro Garnacho was again in the starting side against Rangers in the Europa League on Thursday night, and he was the team's most productive forward player in what proved to be a 2-1 win for the Red Devils.
There is currently widespread speculation surrounding the 20-year-old's future, though, with Chelsea believed to be planning to meet with Man United to discuss his signing before the end of the winter window.
Napoli are said to have had a £40m bid for the attacker rejected at the end of last week, and the Italian team have now seemingly switched their attention to Borussia Dortmund's Karim Adeyemi.
However, Chelsea's interest is genuine, and Man United head coach Ruben Amorim refused to rule out a departure from Old Trafford when questioned on the attacker after the clash with Rangers.
"I'm focused on the games and he's here," Amorim told TNT Sports after the clash. "He's a player for Manchester United. He was really important for us today and let's see in the next days."
Any sale of Garnacho would count as pure profit under the Premier League's Profit and Sustainability rules, and financial concerns could therefore lead to him leaving before the winter market closes.
Matt Law
