Why Man Utd face being hit with yearly £10m adidas penalty

Manchester United will lose £10m from their sponsorship agreement with adidas for every year they miss out on Champions League qualification.

The Red Devils penned a new 10-year deal with the German kit manufacturer ahead of the expiry of their previous contract in 2025.

That contract saw United earn £75m-a-season, while they will now pocket £90m-a-season under this new arrangement with adidas.

However, report United run the risk of losing out on £10m every year as part of a new clause in this deal. The club will instead receive only £80m for the seasons in which they do not qualify for the Champions League.

A similar clause existed in their previous contract, but United would have only been deducted 30% from their yearly amount — approximately £22m — when missing out on Champions League football for two seasons running. This never occurred in the time of the original deal, so United were never penalised.

On the flip side, United can earn up to £4.4m in bonuses with victory in the Premier League, FA Cup, Women's Super League or a UEFA competition.

United face an uphill task if they are to qualify for the 2024/25 Champions League. Though the Premier League stands to gain an extra fifth spot for next year's tournament, Erik ten Hag's side are still lagging behind in sixth. They currently sit six points behind fifth-placed Tottenham Hotspur, who have a game in hand on the Red Devils, while they are a further two points adrift of Aston Villa in fourth.

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