Manchester United’s participation in next season’s Europa League is at risk despite their recent FA Cup victory over Manchester City.

UEFA’s regulations prohibit two teams owned by the same organization from competing in the same tournament. Both Manchester United and Nice are linked through ownership by INEOS. Sir Jim Ratcliffe’s company fully owns Nice and holds a partial stake in Manchester United.

Currently, INEOS holds a 27 percent stake in United but plans to increase its investment by £245 million, raising its ownership above 30 percent.

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This situation puts INEOS in violation of UEFA’s rules as the sole owners of Nice, which finished fifth in Ligue 1 and secured a Europa League spot.

If INEOS does not resolve this issue, one of their clubs could be relegated to the UEFA Conference League. Given Nice’s higher league finish, they would likely retain their Europa League spot, potentially relegating Manchester United.

Manchester United is not alone in facing this dilemma. Manchester City’s parent company, City Football Group, faces a similar issue with their 47 percent ownership of Spanish club Girona.

UEFA recently mandated that City Football Group reduce its stake in Girona to allow the Spanish side to compete in next season’s Champions League following their top-four finish.

The UEFA Club Financial Control Body has updated its multi-club ownership rules to prevent any form of “decisive influence” over multiple clubs participating in the same European tournament.

This requires clubs with shared ownership stakes to navigate these regulations to secure their places in European competitions.

As of now, neither Manchester United nor Nice has made a formal announcement on their next steps.

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