Ten Hag leading Man Utd into financial abyss as sanctions loom

Failure to qualify for the Champions League could have dire financial consequences for Manchester United, according to a report.

The Red Devils are once again in crisis and the pressure on head coach Erik ten Hag is ramping up after three successive winless games. While the Dutchman is not under any immediate threat, he could be sacked as early as next week should results not improve against Porto and Aston Villa.

Man Utd’s new INEOS chiefs would prefer not to have to make a change after publically backing Ten Hag and handing him a fresh contract earlier this year. However, while the season is still young, they can ill afford to dither.

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That is because Man Utd’s financial situation will be massively impacted by results on the pitch. According to The Times, failure to qualify for the Champions League for the second season running could have dire consequences.

Man Utd at risk of FFP and PSR sanctions

For the past two summers, Man Utd have operated on a limited budget due to concerns over Premier League Profit and Sustainability Rules (PSR) as well as UEFA Financial Fair Play (FFP) regulations.

Despite this, the club have continued to spend lavishly on new signings. Man Utd have failed to make a profit in every financial year since 2019, which, the report claims, is putting them at grave risk of breaching PSR and FFP regulations.

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Failure to qualify for Europe’s premier competition would see Man Utd once again miss out on a lucrative revenue stream, while also making the club less attractive for new and even current players.

Given the club’s incentive-driven wage structure, players would miss out on potential pay rises. Additionally, a £10 million ‘penalty clause’ with sponsor Adidas would trigger if Man Utd failed to qualify for the Champions League once more.

There is no guarantee that a new manager will stop the rut, but Man Utd chiefs may feel compelled to act sooner rather than later given that the threat of sanctions appears to loom large.