Manchester United hit by brutal £10m financial penalty after Europa League final defeat

Manchester United's failure in the Europa League means they are now obliged to pay their kit provider, Adidas, a hefty £10million. The Red Devils' loss in Wednesday's final signifies two years without Champions League football, breaching their agreement.

The terms of United's contract with the German manufacturer stipulate that they cannot spend consecutive years outside Europe's premier tournament. However, a disappointing Premier League season and a defeat in the Europa League final mean the Champions League remains out of reach.

Not only will they miss out on potential revenue, but they'll also have to cough up an eight-figure sum. This is yet another financial setback for the Red Devils as they continue to decline from their former glory.

Even amidst their struggles post-Sir Alex Ferguson, they had only been without European football once - during the 2014/15 season. Next year looks set to follow suit as Ruben Amorim's side currently sit in 16th place with just one game left this season.

Despite a downturn in results and fewer trophies, United have maintained their status as a major brand, attracting commercial partners. However, this appeal is beginning to wane, reports the Mirror.

The Tezos sponsorship of the club's training kit concludes this summer, and there has been no announcement about a replacement. This could result in another lost source of revenue.

A senior figure at the club fears their sponsorship income could now plummet.

The BBC was told: "Not being a European team creates more existential issues around the whole model. It's not healthy, and people start to question whether you are still a 'big club'. But win, and it keeps the wheels spinning. The cash will be 'lifeblood' that allows them to keep trading. If not, they'll have to look at selling homegrown talent like Alejandro Garnacho and Kobbie Mainoo to give them the funds they want."

Meanwhile, Amorim previously admitted a reluctance to participate in the Champions League from a gameplay perspective, not a financial one. After his team missed out in the Europa League final with Tottenham lifting the trophy instead, Amorim has, paradoxically, gotten his wish.

Earlier, Amorim didn't rule out winning Europa League, while acknowledging the difficulties his squad would face in European challenges. "We are not ready to play in the Premier League, be competitive, and to be in the Champions League," he conceded.

"We know that, but we need to win, and we need to fight to win this competition [Europa League], to give something to our fans, and to go to the Champions League. Then we will have time to prepare the team to cope with those two competitions. So, it is a dilemma, but we want to win, of course."

United are set to undergo a squad revamp, with Amorim needing to recruit players who fit his unique system, while others are expected to leave. Recently, Matheus Cunha from Wolves and Ipswich's striker Liam Delap have been on the club's radar.

Reports suggest that, even without Champions League income, the club could proceed with both signings, which will likely total just over £90m. Additional support on the wings will also be required, as well as potential midfield options.

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