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Opt-out for sportswear giant

Champions League failure could cost United £20m

man-utd-adidasManchester United will forfeit more than £20 million in sponsorship income from German sportswear giant Adidas if they fail to qualify for next year’s Champions League competition.

Adidas are into the second season of a 10-year deal with the Old Trafford club worth £750m.

United are sixth in the Premier League, six points off a top four slot which is required for qualification to Europe’s to club competition.

After revealing its latest quarterly figures, the club’s chief financial officer Cliff Baty, said: “There is a clause in the Adidas contract that applies if we are missing from the Champions League for two years in a row.

“An example would be if we [were due to receive] £70m [in a given year], we would not receive £21m.”

Failure to qualify for this season’s Champions League has meant three fewer home games than the corresponding period last year.

This has trimmed £3.4m off first-quarter revenue to £120.2m. Match day income is 32.3% lower at £16.8m.

Currency fluctuations since the Brexit vote means that debt has risen 18% to £337.7m.

The club’s commercial revenue rose 4.4% to £74.3m, with overall revenue for the year expected to be between £530m and £540m.

 

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