MANCHESTER UNITED is expected to miss out on £10 million in projected revenues if they continue on their current course.
The Red Devils are in poor form and are currently languishing in 14th place in the Premier League.
Ruben Amorim is yet to turn things around on the pitch with a third successive defeat on Thursday leaving United some 12 points clear of fourth-placed Nottingham Forest.
It now seems extremely unlikely that Man Utd will qualify for the Champions League this season, a failure that could have a huge impact on the club's finances.
According to The Times, United's contract with kit manufacturer Adidas includes a penalty clause that will see them lose £10 MILLION for every season they fail to qualify for Europe's elite competition.
That significant loss would be accompanied by huge losses in broadcasting and matchday revenue.
United is already flirting with breaching Financial Fair Play (FFP) rules and has undergone a number of cost-cutting measures since the arrival of Ineos chief Sir Jim Ratcliffe.
Sun Sport exclusively revealed that Ratcliffe and the club had cut funding for the Association of Former Manchester United Players, a charity founded in 1985 to help footballers of a bygone era who earned nothing like the megabucks of today's superstars.
While Ratcliffe's other cost-cutting measures include canceling senior staffers' credit cards, banning the use of private cars by staff and even asking Man City if they could give United players a lift to the Ballon d'Or in their private jet.
Manchester United has taken measures to compensate for the failure to qualify for the Champions League.
The club's annual report states that players' salaries change based on whether they participate in Europe or not.
It said: “Failure to qualify for the Champions League would result in a material reduction in revenue for each season in which our first men's team did not participate.
“To help mitigate this impact, most playing contracts for our men's first team include salary increases conditional on participation in the Champions League group stage.”
Former Everton chairman Keith Wyness has claimed United are close to compliance with the Profit and Sustainability rules (PSR) and FFP.
Speaking to Football Insider, Wyness said: “Yes, they are right on that line for PSR now.
“The interesting thing is that we know they are listed on the New York Stock Exchange. If there is a material risk that they will breach PSR obligations, this will have to be reported to the market.
“I'm very intrigued by that situation. They started the season very poorly.
“If they don't reach the Champions League next year, unless Amorim can ensure a big resurrection in the second half of the season, then that will also increase the PSR pressure.
'They are in a risky situation, so Amorim has to deliver the goods. There has been pressure on him from day one.”
United must turn their fortunes around on the pitch to save their financial situation.
For Amorim and his low self-confidence, it continues on Monday with a difficult match against an in-form Newcastle United team.
From then on it doesn't get any easier, with games against Liverpool, Arsenal and Brighton on the horizon.
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