Manchester United are, reportedly, at risk of losing at least two major sponsorship deals despite plans to increase revenue by £8million this summer.
United co-owner Sir Jim Ratcliffe has undertaken widespread cost-cutting measures at Old Trafford in his first year. The thinking behind that is that the Reds are currently walking a tightrope with the Premier League Profitabilty and Sustainability Rules (PSR).
With guaranteed qualification to the lucrative Champions League (currently) a thing of the past, sponsorship deals are becoming more important than ever to make up the financial shortfall. However, according to reports from The Telegraph, at least a couple of major sponsors are weighing-up whether or not to pull their backing out of the club.
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It is claimed their reasoning for this is due to a "changing landscape" at Old Trafford as well as the "potential effect on strategy and innovation" - amid a "feeling of not being as valued as before". Such a decision would be seen as a huge blow for United considering how difficult it can be to cultivate these lucrative sponsorship deals.
If there were to be several departing sponsors from the club, Ineos would desperately need to replace them as quickly as possible. While that is concerning, there could be an impending £8million boost to the club's coffers if separate measures go according to plan this summer. It is thought that United could be set to compete in a post-season tour of Malaysia and Hong Kong to try and boost revenue.
The Telegraph estimates that this deal could be worth as much as £8million to the Reds.
Earlier this season, the Premier League confirmed that no top-flight club had fallen foul of PSR so far. Last season, Everton (twice) and Nottingham Forest were hit with points deductions by the division's governing body.
