Agreements like the one with Adidas can have a reduction of up to 50% in the annual value or be terminated if the club moves to the 2nd division
Manchester United faces possible financial impacts related to its contracts in the event of relegation. After the defeat to Newcastle in the 2ndª fair (30.dec.2024), coach Ruben Amorim highlighted the need for structural changes. “Sometimes I talk about relegation because our club needs a shock,” he stated during the press conference.
If the club is relegated to the Championship (2nd division of English football), revenue from television broadcasting, which totaled 222 million pounds (R$1,716,060,000) in the 2023-24 season, and participation in European tournaments, which yielded a average of 55.4 million pounds (R$428,242,000) over the last 3 years, would suffer a substantial reduction.
Additionally, current position in the Premier League table impacts performance bonuses, with each position representing £3.1 million in revenue. The information was released by .
Sponsorship contracts, such as that of Adidas, can suffer a reduction of up to 50% in the annual value of 90 million pounds (R$695,700,000) or even be terminated if the club spends a season outside the Premier League. Commercial partnerships, including training shirt and sleeve sponsorships, which expire in 2025, would also be vulnerable.
Match day revenue, which reached £136 million recently, could be impacted moderately given fan loyalty and the size of Old Trafford, but adjustments to ticket prices could affect the total collected.
The 180 million pound (R$1,391,400,000) 3-year deal with Snapdragon does not include relegation clauses, but other sponsorship contracts would be subject to renegotiation. The plan to rebuild or modernize Old Trafford would also be put on hold.
Manchester United’s new co-owner, Jim Ratcliffe, intends to transform the stadium into a “Wembley of the North”but the estimated costs of 2 billion pounds (R$15,460,000,000) would depend heavily on consistent revenue and access to financing, both of which would decrease in the Championship.
Internally, the absence of relegation clauses in player contracts represents a financial challenge. The wage bill of 365 million pounds (R$2,821,450,000), combined with the drop in revenue, could make it difficult to balance the budget.
Furthermore, the loss of match day revenue and requirements to comply with the Premier League’s profitability and sustainability rules could have additional implications for the club’s financial planning.
