Manchester United’s once-unassailable status in English football is under scrutiny, with concerns mounting over the club’s lucrative partnership with adidas. A potential relegation from the Premier League, though still improbable, could jeopardize the record-breaking agreement.
Adidas deal: a financial powerhouse
Eighteen months ago, Manchester United renewed their kit deal with adidas, extending the partnership for another decade starting in 2025. The updated agreement, valued at an astonishing £900 million, elevated it to the most significant commercial arrangement of its kind in football.
However, clauses within the deal have drawn attention amid the team’s recent struggles. The club’s 2023/24 financial statements revealed that adidas holds protective measures should United fail to remain in the Premier League. These include reducing annual payments by half to £45 million or, in a worst-case scenario, terminating the contract with one season’s notice.
On-field struggles and relegation fears
Under Ruben Amorim’s management, optimism initially surged, particularly after an emphatic victory over Everton. That brief resurgence, however, has given way to a concerning downward spiral. With five defeats in their last six Premier League fixtures, United now find themselves just seven points above the relegation zone midway through the campaign.
Amorim has not shied away from the reality of the situation, openly acknowledging the club’s precarious position. What once seemed implausible – a relegation battle for Manchester United – has entered the realm of possibility.
The fallout of relegation
If Manchester United were to experience the unthinkable and drop out of the Premier League, the ramifications could extend far beyond the pitch. Adidas, who re-established their partnership with the club in 2015, may choose to walk away entirely or substantially decrease their financial contributions.
While such an outcome remains unlikely, the clause underscores the stakes. United’s survival in England’s top flight is crucial, not only for their sporting reputation but also for sustaining critical revenue streams that support their global standing.
As the second half of the season unfolds, Manchester United faces a dual challenge: avoiding relegation and ensuring their off-field alliances remain intact.
