Adidas Relegation Clause Adds Pressure to Manchester United’s Season | OneFootball

Adidas Can End £900m Deal If Man United Drop Out of Premier League

Adidas Clause Piles Pressure on United

Manchester United’s financial muscle has long set them apart — but even giants can fall. As revealed in The Athletic, the club’s £900 million kit deal with Adidas contains a sobering clause: should United suffer the ignominy of relegation from the Premier League, Adidas could terminate the deal with one full season’s notice.

The new agreement, signed in July 2023, runs until June 2035 and delivers £90 million per year to the Old Trafford coffers. But the fine print is damning. “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,” reads the clause. Worse still, “Adidas may terminate the agreement by giving one full-season’s notice if the men’s first team is relegated.”

Such language, more commonly associated with clubs fighting for survival than with one of England’s most historic institutions, now casts a long shadow over the season.

United’s Fragile League Standing

Ruben Amorim’s recent comments made headlines: “It was really clear United were in a relegation battle,” he said, following a dismal 2-0 defeat at home to Newcastle — their fifth loss in six Premier League games.

United sit 14th in the table, just seven points above the drop zone, with a daunting trip to Anfield looming. For a side with Champions League ambitions, the word “relegation” now appears with worrying frequency.

Photo: IMAGO

The implications of poor form extend far beyond the pitch. The club’s accounts state: “Our performance in the Premier League directly affects… our business, results of operations, financial condition and cash flow.”

Champions League Absence Also Comes at a Cost

The Adidas clause isn’t the only financial caveat. The Athletic also revealed that United face a £10 million penalty each season they fail to qualify for the UEFA Champions League, beginning with the 2025/26 campaign.

“This clause has been amended to state that a £10 million deduction will be applied for each year of non-participation in the UEFA Champions League,” the club confirmed.

With the team currently off the pace, qualification looks uncertain — meaning that financial penalties could soon become a yearly burden.

Financial Reality of Decline

Beyond kit deals and European qualification, United’s latest financial results paint a broader picture of instability.

All of this while the club lists a catalogue of risks that could impact revenue streams — including poor performance, relegation, and commercial disengagement.

Photo IMAGO

“We cannot ensure that our men’s first team will be successful… Relegation or a general decline… may negatively affect our ability to attract or retain talented players and coaching staff, as well as supporters, sponsors and other commercial partners,” the accounts warn.

This is not just a downturn in form. It is a structural concern, one laid bare in black and white across financial ledgers.

Our View – EPL Index Analysis

This report is equal parts worrying and familiar. Years of mismanagement have created a club where success on the pitch no longer feels guaranteed — and where failure is punished not just with humiliation, but with genuine financial peril.

For many United supporters, the Adidas clause is simply the latest symbol of how far the club has fallen. Relegation once seemed an unthinkable scenario — now it has a dedicated entry in a major commercial contract. That alone is damning.

The £10 million Champions League penalties also sting. It reflects a club reliant on top-tier football just to stay financially competitive. Once, the Champions League was a stage for glory. Now, it’s a lifeline.

Sir Jim Ratcliffe’s minority investment brings hope — but unless results improve fast, the season could spiral into something more damaging than disappointment. The fixtures are getting harder, the margins thinner, and the consequences graver.

This isn’t just about form — it’s about future.