Manchester United could suffer sponsorship income hit
Failure to qualify for next seasons UEFA Champions League will result in Manchester United losing over £20million sponsorship income from Adidas.
Manchester United's chief financial officer, Cliff Baty said that "there is a clause in the Adidas contract that applies if we are missing from the Champions League for two years in a row. An example would be if we [were due to receive] £70m [in a year], we would not receive £21m."
With Manchester United currently in sixth place in the Premier League, six points off the top four and clubs above them looking in very good shape, the loss of income is a real possibility.
Baty also said that if the club failed to make it out of the Europa League group stage this season then it would cost the club "single digit millions".
The clubs failure to qualify for Champions League this season has already impacted on their 2016-17 finances. The first-quarter revenues, up to 30 September, were down £3.4m (2.8%) to £120.2m, with matchday income also down 32.3% to £16.8m. The main reason for the reduced income was that they played three fewer home games than they did during the same period in 2015.
Manchester United executive director Ed Woodward said: "Our financial results for this quarter reflect the impact of our non-participation in the UEFA Champions League."