Man Utd facing fresh PSR headache as full impact of Erik ten Hag's struggles laid bare

Manchester United have won just two Premier League games so far this season and their struggles under Erik ten Hag could land them in hot water with league officials

Manchester United are facing a fresh challenge to comply with the Premier League's Profit and Sustainability Rules.

Everton and Nottingham Forest were both deducted points last season after falling foul of the regulations. Both sides were able to stave off the threat of relegation, but the Premier League are keeping their tough financial stance in place.

United were only able to avoid a punishment themselves because league officials allowed them to claim a Covid-related loss of £40million in the latest three-year period. Such leniancy is unlikely to be allowed again.

And the Red Devils' awful start to the season under boss Erik ten Hag has put them at serious risk of falling foul of PSR. United have won just two Premier League games, with Sunday's dire defeat to Spurs leaving them 12th in the table.

If their poor form continues and they fail to qualify for the Champions League for a second successive year, a £10million penalty clause in their contract with Adidas will be activated, according to The Times. Tens of millions of pounds will also likely be lost from broadcasting and matchday income.

The clause in the contract with Adidas will then be invoked in any future season United fail to qualify for the Champions League. In the 2018/2019 campaign, United made £93.1m from the Champions League in broadcasting and matchday revenue, having reached the quarter-finals.

But that figure dropped by £55m to £37.5m for 2022-23, when they played in the Europa League. United finished eighth last season, meaning they missed out on the chance to play in Europe's premier competition this year.

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Successive seasons without Champions League football would also result in a 'materical reduction in revenue' according to United's annual report. Salary increases for their players are contingent on Champions League football to soften the financial blow.

The impact of missing out would also negatively affect United's ability to attract and retain top stars, as well as commerical partners. In September, United announced a loss of £113.2m for last season, taking the club’s losses over three years to £254.7m.

That figure is well over the Premier League’s permitted PSR limit of £105m, though United ere able to have comply with PSR by being permitted to claim a Covid loss of £40m for the 2021-22 season.

UEFA did not accept that figure though and subsequently fined them £250,000 for breaching is FFP rules. United do remain keen to comply with both the Premier League and UEFA's financial rules despite the headaches stemming from Ten Hag's struggles though.

In their annual report, United said: “The club remains committed to, and in compliance with, both the Premier League’s profit and sustainability rules and Uefa’s financial fair play regulations.”

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