Manchester United's £900m deal with Adidas could be terminated if the Red Devils are relegated.
Man United are currently 14th in the Premier League and have won just two league games since Ruben Amorim became manager last November. The Portuguese tactician has failed to find a winning formula as he applies his methods to a below-average squad.
Asked if the Red Devils were in a relegation battle after the defeat to Newcastle, Amorim replied: "I think it could happen. We have to be clear with our fans.
We have to accept where we are. I think people are fed up with excuses at this club. Sometimes I talk about relegation, because our club needs a shock."
Man United are seven points ahead of Ipswich Town in 18th place, but Amorim's words will have fans losing hope that they will not be dragged into a relegation battle in the second half of the season.
If the worst happens, Adidas has the right to cancel the contract worth £ 90 million per year with United, according to Telegraph.
Manchester United's financial report as of June 30, 2024 said: "Adidas can reduce the payment by 50% if the men's team does not participate in the Premier League that year. In addition, Adidas has the right to terminate the contract with a season's notice if the team is relegated or does not participate in the highest league in England."
Relegation would leave a lot of financial uncertainty for Amorim’s side. Man United have earned £222m in broadcasting revenue in the 2023-24 season, nearly 80% of which comes from the Premier League.
Even if results aren’t too bad, United are still in serious danger of missing out on European football next season at the very least. The club’s annual accounts show that £166.3m has been raised from broadcast and matchday revenue linked to European competition over the past three years.
