Manchester United ‘to receive a £10m penalty every time they fail to qualify for the Champions League’ under terms of new £90m-a-year adidas kit deal which comes into effect in 2025

Manchester United will be fined £10m each time they fail to qualify for the Champions League under the terms of their new Adidas kit deal.

As reported by The timesThe clause will come into effect when United’s new deal with Adidas begins in 2025.

United’s original ten-year contract with Adidas, worth £750m, expires next year.

Under the current agreement, United would have been penalized if they had failed to qualify for the Champions League for two seasons in a row.

United never missed out on Europe’s elite club competition for two years in a row, but if they had they would have paid around £22m.

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The Red Devils will receive a bonus of up to a maximum of £4.4 million a year if United’s men’s or women’s team wins “the Premier League or Women’s Super League respectively, the FA Cup or continental competitions.”

United’s half-yearly financial report provided details on possible deductions: ‘As a result of the men’s first team qualifying for the 2023-24 Champions League, no deductions should be made as per the original deadline.

“Under the extended period, this clause has been amended to provide that a deduction of £10 million will apply for each year of non-participation in the UEFA Champions League.”

United are currently sixth in the Premier League but will not be penalized if they miss out on Champions League qualification due to participating in the competition this season.

Last year, United announced the biggest kit deal in Premier League history as they announced a new 10-year partnership with adidas worth £900m (£90m a year).

A statement read: “Adidas and Manchester United Football Club are delighted to announce the extension of one of the most exciting and pivotal partnerships in global sport.

‘Manchester United entered into a historic agreement with adidas at the start of the 2015/16 season, reuniting after 23 years. In the seasons since, adidas and Manchester United have thrilled fans around the world with innovative initiatives, iconic designs on the pitch and fan-favorite cultural apparel off it.

“The new deal increases the focus on Manchester United’s women’s team since its reintroduction in 2018, continuing Manchester United and adidas’ commitment to driving women’s football forward.”