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Article continues belowArticle continues belowArticle continues below<script type="application/json" data-placement="fcplayer-semantic">{"type":"fcplayer-semantic","data":{"embedCode":"//cdn.fcp.codes/embed-code-template/embed-code-template.js#SEMANTIC_5704afb8-c10b-4ba5-9cb4-d7fb6098ef90"}}</script><ul><li>United agree new adidas deal</li><li>Fresh terms negotiated</li><li>Could face £10m fine</li></ul>

How adidas could punish Man Utd over course of new 10-year kit deal - explained

Premier League

Ipswich

According to <a href="https://www.thetimes.co.uk/article/47f7bd24-645f-468a-89d7-637757333042?shareToken=19a0b46b739699bb5e016a61062ce138" target="_blank">The Times</a>, United will be hit with a £10 million ($12.7m) fine from adidas every single time the club fail to qualify for the Champions League. The deduction agreement will come into effect from 2025, after the <a href="https://www.goal.com/en-gb/team/manchester-united/6eqit8ye8aomdsrrq0hk3v7gh" target="_blank">Red Devils </a>secured a new deal with the sports kit manufacturer last summer. The current deal with adidas, which was worth over £750m ($954m), is set to expire next year.

WHAT HAPPENED?

Within the current contract, United would only pay a fine if the club failed to qualify for the Champions League in two consecutive seasons. They have never missed out on the prestigious European competition for two successive campaigns during the adidas deal, but if they had done, they would have been forced to pay around £22m ($28m) in fines.However, after securing a 10-year extension with the German sportswear brand worth over £900m ($1.1bn) last summer, fresh terms regarding Champions League qualification have been agreed.

THE EXPLANATION

Details of the possible deductions were referenced in the club's half-year financial report, which read: "As a result of the men's first team qualifying for the 2023-24 Champions League, no deductions are due under the original term. Under the extended term, this clause has been amended to state that a £10 million deduction will be applied for each year of non-participation in the Uefa Champions League."

WHAT UNITED SAID

United will now look to avoid paying this fee ahead of next season, as they try to chase down fellow Champions League battlers Tottenham and Aston Villa.<a href="https://www.goal.com/en-gb/lists/uefa-country-coefficient-premier-league-extra-champions-league-place/blt3ac9ac557eeb25eb" target="_blank">There is a possibility that English football will be granted an extra qualification spot this season</a>, meaning if the Red Devils are able to close the six-point gap between them and Spurs in fifth place, it could be enough to avoid the £10m ($12.7m) fine.

WHAT NEXT FOR UNITED?

How adidas could punish Man Utd over course of new 10-year kit deal - explained | Goal.com

The terms of their new kit deal mean Manchester United could be punished financially by adidas each year they do not qualify for the Champions League.