Manchester United’s Europa League final defeat confirms their first absence from European competition in over a decade — but that’s only part of the growing crisis, as looming struggles to comply with Profitability and Sustainability Rules cast an even darker shadow.

These days, it’s no longer shocking to imagine a club of the magnanimity of Manchester United, once the undisputed powerhouse of English football, missing out on European competition altogether. This, even in a season where the Premier League will have a record nine teams in Europe: six in the Champions League following Tottenham’s Europa League triumph, two in the Europa League thanks to Crystal Palace’s FA Cup success, and one in the Conference League.

In a March 2025 interview with BBC Sport, Manchester United co-owner Sir Jim Ratcliffe addressed the club's financial challenges, particularly concerning compliance with the Premier League's Profitability and Sustainability Rules (PSR).

"For the last seven seasons, if you include this season, the club would have lost money. Seven consecutive seasons. I think that totals about £330 million, so about a third of a billion of cash that's gone out of the club in the last four or five seasons." Said the 72-year-old, who owns 29 percent shares at the club.

Despite an expected revenue of up to £160M this year, the club is on course for a sixth consecutive year of losses, totaling £450M, as total debt, including £300M owed on transfers, has now surpassed £ 1 billion.

Last season, the club finished eighth in the Premier League, missing out on European competition. However, they secured a lifeline by defeating their city rivals, Manchester City, in the Emirates FA Cup final. This victory earned them a spot in the Europa League, while Chelsea was relegated to the Conference League, and Newcastle United missed out on Europe.

The outcome offered momentary relief from the financial weight, but the lesson went unheeded. Erik ten Hag remained at the helm, a decision that only delayed the inevitable. Three months into the new season, with the crisis deepening, the curtain finally fell on the Dutchman's tenure.

The same European ticket earned through FA Cup glory became the veil that masked a season of despair. This disguise let Ruben Amorim’s shortcomings slide, despite his troubling return of just 1.00 points per game across 27 Premier League outings.

But the final defeat to Spurs brought them crashing back to reality, and the financial repercussions will not wait. The absence from Europe spells more than just missed fixtures: it means strained partnerships, vanished incentives, and a sharp drop in revenue that will shape the club’s every move in the months ahead.

Financial Palliatives United Passed Following Europa Loss

On the night in Bilbao, United missed out on an additional £ 5 million, the prize money for winning the final, plus £ 3-4 million for qualifying for the UEFA Super Cup, and £15.6 million base fee cash for entering the Champions League.

Due to finishing in 16th place in the league, their lowest ranking in the top flight since the 1973-74 season, Manchester United are expected to earn approximately €20 million, €17.02 million less than they earned last season when they finished in eighth place.

Additionally, they will incur a £10 million penalty clause in their new deal with kit manufacturer Adidas for the 2025-26 season, as they failed to qualify for the Champions League. This penalty will also be applicable in any future season where they do not participate in UEFA's elite competition.

For a club that is struggling to balance its finances, where the gross loss of £113.2 million in the 2023-24 season has pushed their total losses to over £300 million over the past three years, missing out on European competitions, which typically provide financial assistance, highlights a challenging reality for the club.

While the technicalities of this financial information are a story for the fans and responsibilities of the management, its impact on expenditures like transfers will translate into a social problem at the club, and lack of European football will not be the only reason the club can not attract elite players.

While the technicalities of these financial figures may seem like boardroom concerns, their implications ripple far beyond balance sheets. They directly affect spending power in areas like transfers, and the resulting limitations can create deeper social tensions within the club.

Ultimately, the absence of European football won’t be the sole reason Manchester United struggles to attract elite talents, but a part of a broader, more complex issue at the club.

Top players may and will depart. Alejandro Garnacho is just a few steps away from leaving. At the same time, the duo of Christian Eriksen and Victor Lindelöf have also said their goodbyes, although the latter’s contributions are insignificant.

Bruno Fernandes is heavily linked with a move to Saudi club Al Hilal, who have tabled a lucrative offer, enough to create a distraction in the player’s camp.

The situation will also define the level of players that will be making the switch to Old Trafford this summer. Man United have been dealt a huge blow in their pursuit of Liam Delap, who has chosen their rivals, Chelsea, as they offer a more stable environment and Champions League football.

More targets are bound to prefer moves elsewhere, but even amid rejection, Ruben Amorim must find a way to get the Macunians out of the muddle, if he keeps the job in the foreseeable future.