Despite their recent FA Cup victory over Manchester City, Manchester United's spot in next season's Europa League is at risk.
The 2-1 triumph at Wembley secured their qualification for the European tournament, but UEFA's multi-club ownership rules could potentially ban the team from participating.
UEFA regulations prohibit two teams owned by the same organization from competing in the same tournament.
Manchester United and Nice are both linked through ownership by INEOS, the company headed by Sir Jim Ratcliffe.
INEOS fully owns Nice and holds a partial stake in Manchester United, currently at 27%, with plans to increase this investment to over 30% by adding £245 million.
Manchester United had announced on Christmas Eve 2023 that INEOS Chairman Sir Jim Ratcliffe would acquire up to a 25% share of the club.
However, this increase in ownership would violate UEFA's rules since INEOS already owns Nice, which finished fifth in Ligue 1, securing their own spot in the Europa League.
If INEOS cannot resolve this ownership conflict, one of the clubs might be relegated to the UEFA Conference League.
Given Nice's higher league finish (5th) compared to Manchester United's (8th), it is likely that Nice would retain their Europa League position, potentially relegating Manchester United instead.
Manchester United is not alone in facing this dilemma. Manchester City's parent company, City Football Group, faces a similar issue with their 47% ownership of Spanish club Girona.
UEFA has already mandated that City Football Group reduce its stake in Girona to allow the Spanish side to compete in the next season’s Champions League after their impressive top-four finish.
The UEFA Club Financial Control Body recently updated its multi-club ownership rules to prevent any form of "decisive influence" over multiple clubs participating in the same European tournament.
This update means that clubs with shared ownership stakes must navigate these regulations carefully to secure their places in European competitions.
As of now, neither Manchester United nor Nice has made a formal announcement regarding their next steps to address this issue.
The resolution of this conflict will determine whether Manchester United can compete in the Europa League next season or face relegation to the UEFA Conference League.