Lucrative Manchester United Adidas kit deal to be cut by 30% should club miss out on the Champions League
Manchester United's record breaking kit deal with Adidas will be cut by 30 per cent if the club fail to qualify for the Champions League in consecutive seasons.
The £750m deal will see the German sportswear brand produce United's kit for 10 years from the 2015-16 season onwards will be worth £75.5m a year to the Red Devils.
However, should Manchester United miss out on a top four finish, their annual income from the kit deal would be cut to £52m.
Yet after a catastrophic campaign under David Moyes saw United miss out on Champions League football for the first time since in 15 years, Adidas made sure to protect themselves against future failures.
After announcing the sale of 8m shares yesterday, Manchester United revealed to potential investors that the Adidas kit deal may not have been as lucrative as first advertised.
The club admitted in their share prospectus that missing out on UEFA's elite competition could have a damaging effect on the club's ability to attract global support and sponsors.
The prospectus read: "Failure to participate in the Champions League for two or more consecutive seasons would also reduce annual payments under the recently announced agreement with adidas by 30 per cent of the applicable payment for the year in which the second or other consecutive season of non-participation falls.
"Because of the prestige associated with participating in the European competitions, particularly the Champions League, failure to qualify for any European competition, particularly for consecutive seasons, would negatively affect our ability to attract and retain talented players and coaching staff, as well as supporters, sponsors and other commercial partners."