Adidas Gives Manchester United Conditions to Sustain Kit Deal
German Sportswear maker, Adidas, has warned Manchester United that its world record £750m kit deal will be cut by 30% if they fail to qualify for the Champions League in consecutive seasons from 2015-16.
The contract could also be cancelled if the club gets relegated from the Premier League. United failed to qualify for any of the European competitions this season after finishing seventh in 2013-14.
The English club is looking towards a big improvement under new manager Louis van Gaal, who was appointed Red Devils boss as successor to David Moyes earlier this summer.
Details of the deal with Adidas emerged after United offered more of their shares on the New York Stock Exchange. United announced on Wednesday that they would sell eight million shares, around 5% of the business, after selling 10% in 2012. The money that will be raised – about $150m (£88.7m) – will go to the Glazer family, the club’s American owners.
United could however, benefit from an extra £4m from the deal with Adidas, every year they win the Premier League, Champions League or FA Cup. If the club relegates from the Premier League, the manufacturer can give 12 months’ notice to terminate the contract and reduce payments in half for every season spent outside the top flight.