United’s struggles could come at a big cost (Picture: Getty Images)
Manchester United are facing the prospect of losing £10million every season they fail to qualify for the Champions League as per the terms of their new kit deal with Adidas.
The Red Devils have been with Adidas since leaving Nike in 2015 and their original, 10-year deal with the German company – worth £750million – will expire in just over a year’s time.
It has been a fruitful relationship, though, and terms were agreed last summer on a new, improved deal worth £90m per season that will kick in next year and last until 2035.
However, the deal will not be quite so lucrative if United fail to qualify for the Champions League, with a clause in the contract meaning the Red Devils will face a £10m penalty.
There was a similar penalty clause in the old deal but it was less strict, with United needing to fail to qualify in two consecutive seasons.
That never happened, so United have received the full £75m each season, though they did have three seasons were they failed to qualify – and it could happen again this year.
Under the old terms, United would have been hit with a 30 per cent deduction worth around £22million.
Manchester United have been with Adidas since 2015 (Picture: Getty)
But going forward, as revealed by United’s half-yearly financial results which were released this week, the price has been reduced to £10m as the penalty is now much easier to trigger.
If United fail to qualify for the Champions League this season, they will not incur the penalty as it only kicks in from 2025 onwards.
United’s financial report explained: ‘As a result of the men’s first team qualifying for the 2023-24 Champions League, no deductions are due under the original term.
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‘Under the extended term, this clause has been amended to state that a £10million deduction will be applied for each year of non-participation in the Uefa Champions League.’
But bonuses up to a maximum of £4.4million a year will be paid should either United’s men’s or women’s team win the Premier League or Women’s Super League respectively, FA Cup or continental competitions.
United are currently six points adrift of fifth-placed Tottenham – who have a game in hand – in the race to secure Champions League football for next season, with the Premier League now expected to land an extra place in the competition thanks to some excellent, coefficient-boosting results for English sides in Europe last week.
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