If things don't improve, Manchester United could lose £900 million

Manchester United's financial situation has taken a turn for the worse, with the club facing the very real possibility of relegation from the Premier League. This dire scenario has raised concerns about the future of their lucrative partnership with Adidas.

Adidas' Relegation Clause

The German sportswear giant has a clause in their £900m contract with Manchester United that allows them to terminate the deal if the club is relegated to the Championship. This means that if the Red Devils were to be relegated, Adidas could walk away from the contract, leaving the club with a significant financial hole.

The clause was included in the contract to protect Adidas from the financial implications of Manchester United playing in a lower division. The Championship is a less lucrative league than the Premier League, and as a result, the value of the Manchester United brand would be significantly diminished.

The Impact on Manchester United

The loss of the Adidas deal would be a huge blow to Manchester United's finances. The club relies heavily on sponsorship revenue, and the Adidas deal is one of their most important commercial partnerships. Losing this deal would have a significant impact on the club's ability to compete at the highest level.

In addition to the financial implications, the loss of the Adidas deal would also be a major blow to Manchester United's brand. The club is one of the most famous and marketable sports teams in the world, and the Adidas partnership has been a key part of their brand identity. Losing this partnership would damage the club's reputation and make it more difficult to attract new sponsors and investors.

What Next for Manchester United?

If Manchester United are relegated, the club will need to find a way to cope without the financial support of Adidas. This could mean selling some of their star players or taking out loans. The club may also need to reduce their wage bill and make significant changes to their squad.

The possibility of relegation is a real threat to Manchester United. The club has been struggling on the pitch for several years, and their financial situation is deteriorating. If the club is relegated, it could take many years to recover.