03 Mar 2015 10:24:21
A question for you eds, if we don't qualify for champions league does it affect the amount of money united get from Adidas
{Ed001's Note - yes. Almost every sponsorship deal includes a sliding scale of bonus payments for European involvement. It is standard practice so it would not just be the adidas deal affected if the club failed to make the Champions League.}
03 Mar 2015 10:55:41
So potentially other than losing the 30 odd million we get from CL we could be looking at a total of almost 70-80 million of difference?
{Ed001's Note - it is more a case of not getting the extra. Though it depends on how the club have budgeted for the future, they might well have budgeted based on a top 4 finish, which would put it your way of thinking. I don't believe it would be anything like 70-80m though, more like 50-60m including the CL money.}
03 Mar 2015 10:58:43
Ed001 - in your opinion how vital is it that United don't miss out on the CL places again this year? Seen posters saying it is not that bad if we miss out but I think it would be catastrophic.
{Ed001's Note - if they have budgeted based on a top 4 finish, adding that to the issue of recruiting top talent without CL football, it would be a serious issue. You would have to pay more to attract players, but would have so much less money available. Each year you miss out makes the issue bigger and bigger. I don't believe it would be a disaster missing out, but it would certainly be a major problem that has to be rectified soon.}
03 Mar 2015 11:02:33
Cheers
{Ed001's Note - welcome.}
03 Mar 2015 11:07:06
I remember reading something about Adidas in the Telegraph that if we fail to get into the CL for two consecutive seasons it brings down their payments by a third or more for the whole deal. I don't know how certain that is and the Ed's will know more than me, but a lack of CL again could be carnage if that is true.
Just checking it says we must be in the CL by 16/17 season or 30% penalty.
03 Mar 2015 11:42:57
Thanks ED. After the blowout of transfer spending in the summer I wouldn't be surprised if the board has budgeted with the CL as a given.
{Ed001's Note - that would be the usual instance at United certainly.}
03 Mar 2015 12:04:21
At one of the recent meetings United announced they have set 2 budgets for next year, one with Champions League and one with Europa League and both would leave us in a good financial position.
So they have not budgeted with CL as a given, that would be extremely naive budgeting.
{Ed001's Note - what would happen if the club reached neither, like last season? Is it not naive to have not considered that 3rd option as well?}
03 Mar 2015 13:18:11
I did think that myself, but it appears the club are not expecting anything less than Europa League next season.
03 Mar 2015 13:19:41
You would expect any major business would have budgeted for all outcomes.