Manchester United risk losing Adidas' £900m kit sponsorship if they fail to meet a minimum target this season.
The ten-year sponsorship was announced in July 2023 and is the biggest kit deal in Premier League history.
United's £90million-a-season revenue dwarfs that of their rivals and sees them continue their historic partnership with the German brand, but it could end in tears.
They are fourteenth in the Premier League and are starting to look over their shoulders after five defeats in six games.
Manager Ruben Amorim admitted the Red Devils are in a relegation battle after losing 2-0 to Newcastle at Old Trafford on Monday night – and that is the problem.
United's agreement with Adidas stipulates that the brand can halve its payments in the event of relegation and terminate them with one year's notice.
“Adidas may reduce applicable payments by 50% for one year if the men's first team does not participate in the English Premier League that year,” the club's annual report to June 30, 2024 reads.
'In addition, Adidas may terminate the agreement with 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 will not participate in the Premier League or the top flight. English league.'
If their kit sponsorship were to be halved or completely withdrawn it would be a major blow to Sir Jim Ratcliffe's reign at the club.
For a club that has never finished below eighth in the Premier League, defeat still feels like a far-fetched idea.
A buffer of seven points above eighteenth Ipsiwch also leaves the Red Devils with a comfortable lead.
The fact that relegation to the Championship is even being discussed is a clear indication of how far the 13-time Premier League champions have fallen.
Club legend Gary Neville had scathing words for the side after the 2-0 defeat to Newcastle, their third defeat at Old Trafford.
“Manchester United's confidence has been damaged,” Neville told Sky Sports. 'Newcastle hammering Manchester United. You're looking at the worst pound-for-pound football club in the country, that's how bad they are.'
And when asked if they are now in the fight to stay in the Premier League, Amorim admitted: 'That is very clear, so we have to fight. It is one of the most difficult moments in Manchester United's history and we must deal with it honestly. We have to focus on survival.
'It's a bit embarrassing to be coach of Manchester United and lose a lot of games. I think our club needs a shock and we have to understand that.'
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