Manchester United is having one of its worst seasons in decades — both on the pitch and in the balance sheet. Sitting in 16th place in the Premier League, the club is set for its lowest finish since 1990 and worst points tally of the Premier League era.
However, the Red Devils have one last shot at saving face: winning the Europa League final against Tottenham Hotspur on Wednesday. Victory would not only bring silverware but also secure a place in next season’s Champions League, which offers major financial rewards.
The Unlikely Risk: Winning Could Trigger a Debt Clause
Despite the obvious benefits of reaching the Champions League, an unusual clause in Manchester United’s bond agreements suggests that success could — in theory — lead to a financial headache.
Here’s why: United has nearly £726 million in outstanding borrowings, split across bonds, loans, and credit facilities. One key bond covenant requires the club to maintain at least £65 million in adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) over a 12-month period to avoid a potential default.
But — and here’s the twist — the club is allowed to breach this covenant up to twice, only if it fails to qualify for the Champions League. That means if United’s on-pitch performance improves while its off-pitch financial performance crumbles, it could, hypothetically, be forced to repay hundreds of millions in debt early.
But There’s (Almost) No Real Danger
This scenario is extremely unlikely. Despite reporting over £370 million in losses in the past five years, United has continued to post solid EBITDA numbers. Even in weak seasons, these figures have been helped by large non-cash adjustments like player amortisation and redundancy costs (such as payouts to fired managers).
In 2022, the club came closest to the danger zone, with EBITDA at £81 million, still comfortably above the £65 million floor. In fact, this season the club expects to post £145–160 million in adjusted EBITDA, far exceeding the trigger level for default.
A source close to the club reassured FT Alphaville that winning the Europa League — and qualifying for the Champions League — is firmly in United’s financial best interest.
So, Should United Try to Lose?
No. While the quirky clause in the bond documents technically allows failure as a form of financial cushion, the actual financial metrics suggest United is well clear of any risk — as long as revenues don’t take a huge, unexpected hit.
Even if shirt sales for players like Rasmus Højlund or André Onana have underperformed, there’s no evidence yet that income will fall so drastically as to push EBITDA below the £65 million line.
Still, it’s a strange situation: in theory, being too good at football could be expensive — but in reality, Manchester United is nowhere near that kind of trouble.
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