Manchester United’s potential relegation has sparked widespread debate, with even their manager, Ruben Amorim, acknowledging the possibility. After United’s recent defeat to Newcastle, Amorim admitted relegation could happen. Meanwhile, club legend Gary Neville labeled them “the worst team in England.”
United’s loss to Newcastle marked their third consecutive home league defeat, a first since 1979, leaving them in 14th place, their lowest year-end position since 1989. With just a seven-point gap from the relegation zone and an upcoming clash against a fierce Liverpool side, the situation looks grim.
United have remained in the top flight since being promoted in 1974-75 under Tommy Docherty, following their only relegation. They have achieved massive success over the years, especially during Sir Alex Ferguson’s reign. But what would relegation mean for Manchester United?
TV Revenue Losses
Manchester United heavily relies on broadcasting revenue, earning £222m from TV deals during the 2023-24 season. This accounts for a significant part of their income, with nearly 73% coming from the Premier League. Relegation would drastically reduce these earnings, creating financial strain.
Decline in Commercial Revenue
United stands as a commercial powerhouse, generating over £300m annually in recent seasons. Relegation would not cause all sponsors to leave, but the club would struggle to negotiate lucrative deals as a Championship side.
Adidas, their kit sponsor until 2035, has the right to cut payments by 50% if United doesn’t play in the Premier League for a season. Additionally, Adidas could terminate the deal with a year’s notice if relegation occurs. Other sponsors, with contracts ending soon, may also refuse to renew deals at current rates.
Matchday Revenue Impact
Matchday revenue, tied to fan attendance, is United’s smallest revenue source but is unlikely to decline. Fans’ loyalty should keep Old Trafford packed. Relegation could even boost matchday income due to the Championship’s longer 46-game season compared to the Premier League’s 38 matches.
United’s matchday earnings of £136m per season could remain steady if the fans stay committed, despite the drop in competition level.
Star Players’ Departure
Relegation would prevent United from attracting top-tier players and retaining some of their current stars. While a few senior players might stay, others could leave.
Contracts typically include clauses for wage cuts of 30-50% in case of relegation, protecting clubs from financial losses. However, United’s base salary system complicates matters. The club’s wage bill of £365m per year, equivalent to £1m daily, could become an enormous burden.
Relegation would undoubtedly alter Manchester United’s future, both financially and competitively, creating a challenging path forward.
