Man Utd face €1 BILLION blow as club makes relegation admission

Robin Bairner

• Updated: 2 Jan 2025 05:42 CST
• 3 min read

Manchester United face the worrying prospect of losing a sponsorship deal worth more than €1 billion if the wretched Premier League form that the club is experiencing continues.

The Red Devils sacked Erik ten Hag in October but there has been no immediate upturn in the fortunes of the club following the appointment of Ruben Amorim.

Indeed, Man Utd have lost four successive games in all competitions, including three straight in the Premier League, with some critics even suggesting that they have been drawn into a relegation battle.

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Liverpool are up next for Amorim’s struggling side, and if they are to lose to their great rivals then they really could find themselves in dire straits should they lose at home to Southampton on 16 January.

The implications of relegation would be tremendous, with The Telegraph reporting that United could be left with a black hole of nearly €1.1 billion (£900 million) in their budget.

It states that there is a “doomsday scenario” that would see Man Utd have their kit deal with sportswear firm Adidas cancelled.

“Adidas has the power under the terms of its 10-year agreement with United to scrap the entire £90 million-a-year contract at one full-season’s notice if the club were to drop out of England’s top flight,” it says.

Man Utd’s relegation contingency

Manchester United have admitted that there is a provision in the deal with Adidas if they fall out of the Premier League.

The situation detailed in the Telegraph is a worst-case outcome for the Red Devils as the firm could also opt to reduce their payments by half if United find themselves in the stunning position of being in the Championship.

The club’s accounts, released at the end of September, detailed this:

“Adidas may reduce the applicable payments for a year by 50 per cent if the men’s first team is not participating in the English Premier League during that year.

“In addition, Adidas may terminate the agreement by giving one full-season’s notice if the men’s first team is relegated from the English Premier League or if it is otherwise determined that the men’s first team shall not be participating in the Premier League or the top English league.”

Man Utd signed the deal with Adidas in July 2023, which is worth a total of €1bn, yet they lose around €12m per season when they fail to qualify for the Champions League.

That, however, is the least of their worries at present as they sit just seven points clear of the Premier League’s relegation zone.