Manchester United are facing a mounting sporting and financial crisis, after slipping into the relegation zone in the Premier League, in a disastrous start to the season that puts the club before a scenario that had only been raised hypothetically, but which has become more worrying as the negative results continue.

Manchester United have collected just 8 points from their first 10 Premier League matches, a single win leaving them eighteenth and in the first of the relegation spots. One of the world's biggest clubs dropping into the Championship has become a genuine source of concern.

Enter Germany's Bild newspaper, which has relayed a report from Britain's The Sun on the enormous financial fallout relegation could trigger. It all hangs on United's sponsorship deal with German giants Adidas, an agreement that lets the company walk away early should the team drop down a division.

The contract, according to the report, includes a clause that grants Adidas the right to end it with one full season's notice if United are relegated from the Premier League. The total value reaches 900 million pounds sterling, equivalent to around 1.03 billion euros.

United extended their partnership with the German firm in 2023 for a further 10 years, keeping the deal running until 2035. Worth around 900 million pounds sterling, it averages 90 million a year, close to 107 million euros per season.

Termination is not the only danger, though. Keep the contract in place and relegation would still slash the annual payments by 50% for every season spent outside the Premier League. The dues would tumble from 90 million pounds sterling to just 45 million per season.

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Champions League: another threat

Relegation is not the only financial threat lurking in the sponsorship deal. The contract carries a second clause tied to Champions League participation, allowing Adidas to cut the guaranteed payments by 10 million pounds sterling for every season United miss out on the continental tournament.

That condition has already bitten. United sat out the Champions League for the 2025-2026 season, triggering the financial reduction written into the agreement. Part of the potential losses are already on the books, the price of sliding results and a season away from Europe's top table.

Eighteenth in the table on 8 points from 10 matches, United have managed one win, five draws and four defeats, a single point behind Coventry City in seventeenth. Their last outing finished 4-4 against Aston Villa. They resume on 22 November against Liverpool, with all signs pointing towards the appointment of a new manager in place of Michael Carrick.