Finance guru: ‘Extraordinary force majeure’ could void £8m-a-year Man United deal
Man United may be protected from a financial blow by a “force majeure” clause after they terminated their contract with Aeroflot.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the aborted deal with the state-owned Russian airline.
United have been partnered with Aeroflot for over 10 years and signed a six-year £8million-a-season renewal in 2017.
But a club spokesperson told the Daily Mail today (25 February) that the partnership has been cancelled in response to Russia’s invasion of Ukraine.
Plumley claims that the Red Devils have “done the right thing” and will not incur any significant legal or financial costs as a result.
“The upshot is no one really knows without seeing the contract,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“But you could have a force majeure clause for events that are completely left-field or extraordinary. It’s difficult to say in terms of the legal complications.
“But this is the right thing to do. A lot of Man United fans have been very vocal about this so it’s good to see the club react to that.
“This deal was expiring in 2023, so looking at the financial impact, they are relatively safe.
“United’s commercial revenues at last count were £230m, so you can take the hit. As a commercial property, they will be able to pick up another sponsor.”
Russian airlines have now been banned from most European airspace.
United flew with a different carrier when they travelled to face Atletico Madrid last Wednesday (23 February).
In other news, pundit “confident” on Harry Maguire quitting Man United after journalist’s transfer update.