The two clauses in Man Utd’s £900million Adidas deal that could leave club’s finances in TATTERS if they are relegated
MANCHESTER UNITED’S lucrative Adidas contract could be TERMINATED if they are relegated from the Premier League.
Boss Ruben Amorim admitted that relegation is a “possibility” after the Red Devils lost 2-0 to Newcastle on Monday.
United chiefs penned a 10-year extension with Adidas as the club’s kit manufacturer in the summer of 2023.
The agreement is worth £90m per season – but relegation would drastically change matters.
Should the Red Devils go down, Adidas would possess the option to terminate the deal at just one season’s notice.
Alternatively, the German manufacturer would be within their rights to halve their payment for any season in which United are in the Championship.
This means that, should the Red Devils go down this season, next year Adidas could pay £45m for the 2025-26 campaign, rather than the full £90m.
Even if United stay up, they are set to take a financial hit.
As of next season, £10m will be deducted from the full £90m Adidas rate for any campaign in which the Red Devils are not in the Champions League.
As reported by the Telegraph, United’s latest accounts detailed some of the financial risks that would come with relegation.
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They wrote: “Relegation from the Premier League or a general decline in the success of our men’s first team, particularly in consecutive seasons, may negatively affect our ability to attract or retain talented coaching staff, as well as supporters, sponsors and other commercial partners, which would have a material adverse effect on our business, results of operations, financial condition and cash flow.”
When asked about relegation following Monday night’s match, Amorim admitted: “I think that it is a possibility. We have to be clear with our fans.”
Further quizzed if such talk was embarrassing, he later added: “It is also my fault.
“The team is not improving. It is a little bit lost in this moment and it is a bit embarrassing to be Manchester United coach and lose a lot of games.
“I think people are tired of excuses at this club. This club needs a shock.”