Manchester United face losing £50million in straight revenues because of their failure to qualify for the Champions League, finance experts have revealed.
Arsenal faces a similar fate, although the Gooners have the alternate route of winning the Europa League still to exhaust as they prepare to take their 3-1 advantage to Valencia in the away tie of the competition’s semifinals.
No guaranteed revenue outside the EPL. Arsenal is not in danger of relegation, but missing out on the Champions League is a $60 million dollar hit. That’s 3 years in a row they’ve missed. Couldn’t beat a team already relegated at home.
— turd_herder (@turd_herder) May 5, 2019
The two giants domestically are in a struggle to avoid the sixth spot which would mean going through exhaustive three rounds of Europa League qualifications instead of playing lucrative pre-season friendlies.
However, this is just the tip of the iceberg.
Manchester United topped the rankings for a second consecutive year with a 2016/17 revenue of €676.3m, the equivalent of £581m. The biggest and the richest club in the world. (deloitte) #mufc
— Red Devil Army (@wickedchandy) January 23, 2018
Dr Dan Plumley, a senior lecturer in sports business management at Sheffield Hallam University, believes that missing out on Champions League football will hurt United in many different ways.
“It’s a ballpark figure because of the way UEFA distributes the money, and that system is changing next season,” said Plumley.
“But there is nothing to suggest the market pool for English clubs will deviate that much so we can be reasonably sure that failure to qualify will cost them in the region of £50million of broadcast and prize money.”
It does not end there.
The Red Devils risk losing as much as thirty per cent of income from their Adidas kit deal as a clause in the contract entitles the sportswear giants for a discount if United don’t make it into the UCL two seasons running.
Although that is not an immediate threat but given the current scenario at Old Trafford, on and off the pitch, United should be wary.
Other than mere financial implications, Dr Dan Parnell, a senior lecturer in sports business at the University of Liverpool has stated that missing out on Europe’s premier competition will mean extra burden for the incoming director of football at Manchester United.
“The biggest clubs and best talent want to perform at the highest level,
“United aspire to return to their normal and expected operations, which typically included strategic, long-term decision-making within their recruitment departments.
“But failure to offer Champions League football to prospective playing talent will hinder the role of the future director of football who will no doubt be tasked with leading the club back into the echelons of European football.”