MANCHESTER UNITED'S lucrative Adidas contract could be TERMINED if they are relegated from the Premier League.
Boss Ruben Amorim admitted relegation is a “possibility” after the Red Devils lost 2-0 to Newcastle on Monday.
United's leaders signed a 10-year extension with Adidas as the club's kit manufacturer in the summer of 2023.
The deal is worth £90m per season, but relegation would change things drastically.
Should the Red Devils go down, Adidas would have the option to terminate the deal with one season's notice.
Alternatively, the German manufacturer would be entitled to halve their payment for each season in which United play in the Championship.
This means that, if the Red Devils go down this season, Adidas could pay £45m next year for the 2025-26 season, instead of the full £90m.
Even if United survive, they will take a financial hit.
From next season, £10m will be deducted from the full £90m Adidas fee for every campaign in which the Red Devils are not playing in the Champions League.
As reported by the Telegraph, United's latest reports detail some of the financial risks associated with relegation.
They wrote: “Relegation from the Premier League or a general decline in the success of our men's first team, particularly in consecutive seasons, could negatively impact our ability to attract or retain talented coaching staff, as well as supporters, sponsors and other commercial partners. , which would have a material adverse effect on our business, results of operations, financial condition and cash flow.”
When asked about relegation after Monday night's match, Amorim admitted: “I think it is a possibility. We have to be clear with our fans.”
When questioned further about whether such conversations were embarrassing, he later added: “It's my fault too.
“The team is not improving. It's a bit lost at the moment and it's a bit embarrassing to be coach of Manchester United and lose a lot of games.
“I think people are tired of excuses at this club. This club needs a shock.”
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