Manchester United’s Premier League troubles could carry significant financial consequences, with Adidas reportedly able to terminate its ten-year sponsorship agreement with the club if the team is relegated to the Championship.

The “Red Devils” are in a dangerous position in the league and face the prospect of a wider commercial crisis if they cannot turn their season around. Their agreement with Adidas is one of the most important sponsorship deals in the club’s history, but it reportedly contains provisions that could place further pressure on Manchester United.

According to British newspaper The Sun, Adidas would have the right to end the contract early if Manchester United were relegated at the end of the season. The sportswear company would, however, be required to give one full season’s notice before terminating the agreement.

The contract also includes a financial penalty linked to the club’s failure to qualify for the Champions League. The Sun reports that Adidas can reduce its payments by approximately £10m for every season in which Manchester United’s men’s team does not secure a place in the competition.

That clause has already been used. It applied during the 2024/25 campaign, when Manchester United finished 15th in the league table. The club subsequently returned to the Champions League for the 2025/26 season.