Manchester United could be hit with a £10million penalty and face challenges around Premier League profit and sustainability rules (PSR) if they fail to qualify for next season’s Champions League. The Red Devils fell to 13th in the top-flight table on Sunday after they were humiliated 3-0 by Tottenham at Old Trafford.

Like many of the top clubs across Europe, United’s revenue is largely dependent on their performances on the pitch.

And Erik ten Hag’s side have started the season in woeful form as they have won just two of their opening six league matches. They were also held to a 1-1 draw by FC Twente in the Europa League last month.

According to The Times, United’s official kit supplier Adidas will invoke a £10m penalty clause if the north west giants fail to qualify for the Champions League for a second consecutive season.

The German company would then dish out the same financial sanction for any future seasons United are absent from Europe’s top-tier club competition.

The Red Devils would also miss out on 10s of million of pounds from broadcasting rights and matchday income.

United made £93.1million from the Champions League through broadcasting and matchday revenue during the 2018/19 campaign. However, the club only received £37.5m from the same sources for their Europa League endeavours during the 2022/23 season.

And with the 13-time Premier League champions used to spending big money on player signings and wages, they could face a challenge to comply with PSR rules should they fail in their attempts to return to the Champions League at the end of the season.

The losses would be offset to some extent, however, as some players would miss out on salary increases that are handed out if the team are playing in the Champions League.

United’s potential woes were laid out in their annual report. And the club explained in the document: “Failure to qualify for the Champions League would result in a material reduction in revenue for each season in which our men’s first team did not participate.

“To help mitigate this impact, the majority of playing contracts for our men’s first team include step-ups in remuneration which are contingent on participation in the group stage of the Champions League.

“Moreover, because of the prestige associated with participating in the European competitions, particularly the Champions League, failure to qualify for any European competition could negatively affect our ability to attract and retain talented players and coaching staff, as well as supporters, sponsors and other commercial partners.”

The Red Devils added: “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.”