Man United get extra ‘£10m’ after deal agreed – Stefan Borson
Manchester United have inserted clauses in their players’ contracts to counteract the money they will lose from Adidas if they fail to qualify for the Champions League.
That is the view of former Man City financial adviser Stefan Borson, who exclusively told Football Insider he doesn’t believe the cut in sponsorship money will be as big of a deal as some people have made it out to be.
Man United agreed a 10-year extension with Adidas last year in a deal believed to be worth up to £900million.
But The Times reported on 1 October the new agreement includes a clause stating the German kit manufacturer will pay United £10million less per year if they are not in the Champions League from next season onwards.
Erik ten Hag’s side have endured a difficult start to the new season as they currently sit 14th in the Premier League table, while they have drawn both of their opening two Europa League games.
Man United will make £10m+ saving if player wages reduced
But Borson revealed clauses in the United’s players’ contract will offset any lost earnings from the Adidas deal.
He told Football Insider: “It’s been reported because they formally said it within their filings for the New York Stock Exchange and in their accounts.
“They used to have an arrangement where the fee would reduce by 30 per cent if they had two consecutive seasons out of the Champions League and now it’s a fixed cash amount.
“It’s not actually as big of a problem as people have suggested in my view because one thing they have to counteract that is most of their contracts have a non-Champions League clause in them, which means the player wages fall.
“That means they will make a saving of more than £10million from the reduced player wages, so the £10million will just be in the round of not being in the Champions League.”
In other news, Man United’s plan to hold Max Allegri talks revealed.
For more Man United news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.