If the Red Devils were to ultimately be relegated, the financial losses would be enormous.
Fifty years ago, Tommy Docherty was the mastermind behind Manchester United's return to the top flight of English football. The Red Devils endured a year in the wilderness before returning to the first division. The 1974-75 season was the last time Old Trafford played in the second tier – an almost unthinkable relegation given the club's subsequent dominance in the 1990s and 2000s. But what once seemed impossible now looms as a real threat in 2025.
United have spent too much time without a figure like Alex Ferguson, too many years searching for a successor capable of restoring glory. Someone who can appoint them as an eternal favorite in every competition.
Relegation is a real possibility for Manchester United
After the final game of 2024, Ruben Amorim's side were just seven points above the relegation zone, a precarious position that underlines the mounting challenges at Old Trafford.
A possible relegation would have catastrophic consequences – not only on the pitch but also financially. The rebuilding of the stadium, the squad and the club itself would come to a sudden and devastating halt.
Manchester United's revenues from commercial and broadcast rights would plummet, with ripple effects that could threaten the Premier League's sustainability programme.
Television rights would be lost
Last season, Manchester United earned over €265 million from broadcasting, the majority of which was tied to Premier League rights, with around 27% coming from their participation in the Champions League.
However, the current season has already seen a significant drop in turnover after Manchester United failed to qualify for Europe's top competition. Even if they avoid relegation, a poor finish in the league would cost the club millions; each position lower in the ranking equates to approximately €4 million less in revenue.
Sponsorship would be scary and even cancelled
As one of the most iconic clubs in the world, Manchester United typically attracts significant interest from sponsors. Over the past two seasons they generated more than €360 million in sponsorship income. However, relegation to the Championship could seriously damage this flow.
Adidas, the club's kit sponsor until 2035, has a clause allowing it to cut payments by 50% if Manchester United lose Premier League status. Adidas could even terminate the deal completely by paying €108 million and giving one year's notice.
Further complications arise with other sponsors. Snapdragon, which paid 216 million euros to have its logo appear on Manchester United shirts for three seasons, has no similar clauses. However, the contract expires in 2025, leaving the club in a challenging position to negotiate a similar deal if relegation occurs.
Financial Sustainability Rules (PSR)
Manchester United have already suffered significant losses in the last two seasons. While they remain within the Premier League's sustainability rules, which limit losses to €126 million, relegation would subject them to the EFL's stricter financial rules. Under these rules, the maximum allowable losses drop to €100 million. Violating these limits can result in points deductions and heavy fines.
Compounding these problems is the lack of relegation clauses in player contracts. The club would likely be forced to sell several key players at discounted prices to manage their finances. As such, Amorim must complete a huge job under great pressure in the North West of England.
Original article written by Xavi Heras, translated with the help of AI and edited by Joe Brennan.
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