Inside New 2035 Manchester United x Adidas Deal
Nov 15, 2023, by Phan Tich Giay
- Contract Extension: Manchester United extended their partnership with Adidas until 2035 in a record-breaking deal.
- Financial Details: The new deal is worth at least £900 million over 10 years, with a minimum of £90 million per season.
- Performance Clauses: The annual payment can increase based on Manchester United's performance, but will be reduced by £10 million per season if the team fails to qualify for the Champions League, and potentially more for relegation or non-participation in the Premier League.
Last July, Manchester United announced the extension of their partnership with Adidas until 2035 in a record-breaking deal. Now, the club's recently released full financial results for the twelve months ended 30 June 2023 reveal many important details of the new Adidas x Manchester United deal. Thanks to Calcioe Finanza and @Lu_Class_ for breaking down the information.
Adidas x Manchester United Kit Deal - All Details
The new Manchester United x Adidas 2035 kit deal is worth "at least" £900m ~ 1.04 bn €(£90m/season), valid for ten years from 1 July 2025 until the end of June 2035. With the new deal, Manchester United have become the leader of the biggest football kit deals, with a yearly value of £90m (€104m).
If Manchester United fail to qualify for the Champions League, Adidas will pay 10 million GBP less
The new deal has a less speculative clause if the club do not participate in the Champions League. If so, Manchester United will get £10 million less. Previously, a reduction of 30% (£22.5 million) would have been applied after two years of non-participation in the UEFA Champions League
Inside New Manchester United x Adidas Deal - 10 Years Until 2035
- The new contract has a term of 10 years (1 July 2025 - 30 June 2035).
- The minimum guarantee payable over the term of this extended agreement is £900m over 10 years - £90m/season.
- The fee paid by Adidas for each year may increase based on the performance of Manchester United in the competitions in which they participate: the league, other national and continental competitions, with a maximum possible increase of £4.4 million per year (approximately €5 million per season at the current exchange rate).
- The payments per season may be reduced if the men's first team does not qualify for the UEFA Champions League (reduced by £10 million per season). The original agreement provided that if the men's first team did not participate in the competition for two or more consecutive seasons, a reduction of 30% would be applied in the second or subsequent year of non-participation.
- Adidas's minimum guarantee does not include single brand licensing rights or the right to create and operate Manchester United branded football schools, physical sales channels and e-commerce retail channels, the rights to which could generate additional revenue for the Club.
- The new contract is also subject to termination clauses affecting both parties in the event of breach and insolvency. Adidas can reduce the annual payments by 50% IF THE FIRST TEAM DOES NOT PARTICIPATE IN THE PREMIER LEAGUE DURING A SEASON. In addition, Adidas may terminate the contract with a full season's notice if the first team is relegated from the Premier League or if it is otherwise determined that the men's first team will not participate in the main league.
The new Adidas x Manchester United shirt deal will take effect from 1 July 2025, immediately following the expiry of the current deal.
With the figures involved, it is clear that Manchester United remains one of the world leaders in economic terms.
Check out all Manchester United kits on Football Kit Archive.
What do you think about the new contract details between Manchester United and Adidas? Do you like that Adidas will continue to make Manchester United's kits until 2035? Comment below.
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