MU: financial catastrophe in the event of elimination in the LDC

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By: Manu Tournoux

Manchester United probably did not foresee such a scenario. Fourth and last in Group A, behind Bayern Munich, Copenhagen and Galatasaray, Erik ten Hag’s team does not have its destiny in hand, especially after the draw against the Turks on Wednesday (3-3). The Red Devils will have to beat the Bavarians on the final day while hoping for a draw between Hakim Ziyech’s teammates and the Danes. The optimism is not the most sincere, while the English could suffer serious financial consequences in the event of premature elimination in the Champions League. In a long paper, The Athletic explains that Manchester United could be sitting on lots and lots of money. In C1, the further a club goes, the more it replenishes the coffers. So, if the Red Devils got out of the groups, they would already win €9.6 million. An additional €10.6 million by going to 1/4, while a place in 1/2 is worth €12.5 million. Not to mention a final, estimated at €15.5 million. Suffice it to say that they probably won’t have this money.

So far, the Mancunian club has won “only” €3.73 million in 5 UCL days. If the English come back with their FIFA coefficient (11th) and pocket €12.5 million thanks to that, elimination from the groups would be catastrophic in terms of financial fair play (FFP). The Athletic reports that the additional revenue United would miss would harm its quest for compliance in terms of profits generated and financial stability (P&S test). This latest rule states that clubs are allowed to lose a maximum of ÂŁ105 million over 3 years, but only if up to ÂŁ90 million is covered by owners’ equity contributions. Unfortunately, Mancunian losses are already enormous (ÂŁ150 million in 2021/22 for example) and the expected gains in the Champions League should not allow them to reassure themselves economically. Among the consequences of such a shortfall: the winter transfer window. Erik ten Hag and his team could be forced to recruit cheaply, or even to recruit only with loans. Last year, MU was in roughly the same situation and had to trust Wout Weghorst and Marcel Sabitzer… two failures. Next Tuesday, December 12 is expensive.