Man Utd at risk of massive penalty that would be disastrous for club as contract clause revealed

A leaked contract has revealed that Manchester United are at risk of receiving a penalty which could seriously impact the club's future.

United have had a disastrous start to the 2024/25 season, winning just three of their eight matches so far and only seven points in the Premier League.

Two 3-0 losses to rivals Liverpool and Tottenham Hotspur at Old Trafford have been the low points of the season so far and have raised questions about Erik ten Hag's role as manager of the club.

And things could get worse for United, as a new report has revealed that the club is facing a big risk of receiving a huge penalty after a clause in a sponsorship contract was leaked.

According to a report from The Times, United will be hit with Profit and Sustainability Rules (PSR) issues should they once again fail to qualify for next season's Champions League.

The club's latest annual report shows how disastrous a failure to play in the most elite European football competition for the second successive season would be financially.

With 32 Premier League matches and the majority of this season's Europa League still to be played, it remains early to assume that United won't qualify, but as it stands, they sit in the bottom half of the table and are already six points outside of the top four.

Should they miss out, it would be the first time in the Premier League era that the Red Devils have not appeared in the Champions League for back-to-back seasons.

And if this were to happen, they would be faced with a £10million penalty due to a clause in United’s new deal with Adidas being invoked for 2025-26.

This penalty will be charged each season that United do not compete in the Champions League and will add to the tens of millions more lost from broadcasting and match-day income.

Two seasons out of the competition would also mean United may struggle to comply with Uefa’s Financial Fair Play (FFP) regulations and the Premier League’s PSR.

Manchester United manager Erik ten Hag is currently facing pressure about his role at the club. (Image:Getty)

The club's annual report explains exactly how impactful this could be, and how players will be forced to take a pay cut to help lessen the blow.

It reads: “Failure to qualify for the Champions League would result in a material reduction in revenue for each season in which our men’s first team did not participate.

"To help mitigate this impact, the majority of playing contracts for our men’s first team include step-ups in remuneration which are contingent on participation in the group stage of the Champions League."