United could lose more than £20m in sponsorship income should they fail to finish top four
Manchester United are at risk of triggering a financial penalty in their £750m kit deal with Adidas should they fail to qualify for this season’s Champions League.
United will suffer a 30 per cent cut to their annual £75m payment from the German sportswear giant if they finish outside of the top four. This means the club will lose more than £20m in sponsorship income.
However, it’s believed the total £22.5m deduction would be spread over the full 10 years of the current contract.
United would therefore pay a catch-up penalty fee of £4.5m for the first two years of the agreement and then suffer a deduction of £2.25m from the annual £75m payment for the remainder of the contract.
Adidas is in the second season of its 10-year, £750m deal with United.
Executive vice-chairman Ed Woodward confirmed the details of the looming financial penalty to club investors on Thursday.
Despite spending close to £150m to bring in the likes of Paul Pogba, Zlatan Ibrahimovic, Henrikh Mkhitaryan, United currently sit sixth in the league– 3 points off fourth place and 17 points behind table toppers Chelsea.
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