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The importance of the Champions League for United

United’s quest to qualify for the Champions League remains in their hands — and they should be aided by three home fixtures — but if they weren’t previously looking over their shoulder, they certainly are now.

While qualification for Europe’s elite club competition will be invaluable when it comes to attracting players in the summer, myriad financial outcomes also depend on whether United can finish in the top four.

As per their accounts for the three months ended December 2022, United currently owe close to £1billion ($1.2bn) and the Glazer family, the club’s current owners, have not shown a desire to dip into their own pockets and bankroll the club. Instead, their controversial ownership has cost United about £1.5billion ($1.9bn) in interest, debt and other outgoings.

This puts United at a disadvantage to their domestic rivals, including Manchester City and now Newcastle United, whose owners have far deeper pockets, though Manchester United have one of the biggest revenues in club football.

In the club’s most recent set of accounts, for the three months ended December 2022, the cost of playing in the Europa League instead of the Champions League is stark.  Broadcasting revenue totalled £58.8million ($74.1m), a decrease of £27.6m ($34.8m) from the three months ended December 2021. This downfall was attributed to not participating in Europe’s elite club competition.

Had they qualified for the Champions League, the expectation was that overall revenue would be at record levels.

In their accounts for the financial year ended June 2022, United detail their combined broadcasting and matchday revenue related to European competitions as being £75million (June 2022), £73.8m (June 2021) and £20.9m (June 2020).

It is important to remember the 10-year kit deal they signed with Adidas ahead of the 2015-16 campaign includes a non-Champions League participation clause. The agreement is worth £75million ($94.5m) a year to United.  If United fail to qualify for the Champions League two seasons in a row, then the annual payment they receive from Adidas is cut by 30 per cent.  That would see the annual payment fall from £75million to £52.5m ($66.2m), a reduction of £22.5m. 

 

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