Adidas could end £900M kit deal if Manchester United relegated

Manchester United’s £900 million kit deal with Adidas could be terminated by the German sportswear giant if the club were relegated from the Premier League, Report informs via The Telegraph.

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.

Alternatively, Adidas could reduce payments for a year by half to £45 million if United’s worst fears were realized and the club was relegated.

Ruben Amorim said it was “really clear” United were in a relegation battle after they slumped to a fifth defeat in six league games following Monday’s dire 2-0 loss at home to Newcastle.

United face league leaders Liverpool at Anfield on Sunday with the team currently in 14th position, seven points above the drop zone.

In United’s accounts to June 30 last year, which were published in September, the club document the penalties they could face under the terms of their deal with Adidas in the event of relegation.

The details read: “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.”

United signed a 10-year extension with Adidas in July 2023 that replaced their previous arrangement with the company, which was worth £750 million.

The new deal runs until June 2035 and includes a £10 million penalty in the event United fail to qualify for the Champions League this season.