Manchester United relegation could put long-term Adidas deal at risk

Manchester United’s worsening start to the Premier League season has exposed the club to potentially severe financial consequences, with Adidas able to end its £900m sponsorship agreement if the club is relegated.

United have collected only eight points from their opening 10 league matches and are 18th, the first position in the relegation places. They have won just once, raising the possibility that one of the world’s biggest clubs could drop into the Championship.

The financial implications of that outcome were reported by German newspaper Bild, citing The Sun. Under the terms of United’s agreement with Adidas, the German sportswear company can terminate the partnership if the club leaves the Premier League.

The contract reportedly includes a clause allowing Adidas to end the deal by giving notice for one full season. The agreement is worth £900m in total, equivalent to about 1.03bn euros.

United extended their partnership with Adidas in 2023 for a further 10 years, meaning the deal is scheduled to run until 2035. Its average value is £90m per season, or about 107m euros.

However, termination is not the only financial risk. If Adidas chooses to maintain the agreement after relegation, United’s annual payments would be reduced by 50% for every season they remain outside the Premier League.

That would cut the club’s yearly income from £90m to £45m.

Champions League clause already costing United

The sponsorship agreement also includes a separate provision linked to Champions League participation. Adidas can reduce United’s guaranteed payments by £10m for each season in which the club does not qualify for the competition.

That clause has already been activated after United failed to play in the Champions League during the 2025-2026 season. The club has therefore already suffered part of the potential financial damage caused by its results and absence from Europe’s premier club competition.

United are one point behind 17th-placed Coventry City, with their record standing at one win, five draws and four defeats from 10 matches.

Their latest game ended in a 4-4 draw against Aston Villa. They return to action against Liverpool on 22 November, with mounting indications that a new manager could replace Michael Carrick.

The club’s league position means the consequences of the next phase of the season extend beyond sporting performance. Relegation would not only threaten United’s status in the Premier League but could also reduce or end one of their most valuable commercial partnerships.