A clause in Manchester United’s lucrative contract with sponsors Adidas states that they will forfeit a whooping £10 million if they did not qualify for the Champions League.
Despite the Red Devils’ recent struggles off the field, their popularity in the marketplace hasn’t decreased.
They have agreed to extend their sponsorship agreement with Adidas in a deal worth £900 million over ten years, tying them to the German sportswear giants until 2035. This was announced last year.
Even though that agreement is big, it has now come to light that some payments are contingent upon performance on the field, specifically qualifying for the Champions League. According to the rules of their deal with Adidas, United would be fined £10 million each year that they are unable to advance to Europe’s premier knockout competition. This was verified in the club’s half-year financial report.
An extract in the report states: “As a result of the men’s first team qualifying for the 2023-24 Champions League, no deductions are due under the original term.
“Under the extended term, this clause has been amended to state that a £10 million deduction will be applied for each year of non-participation in the Uefa Champions League.” [CONTINUE READING HERE]
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