PHOTO: Manchester United risk losing out in Adidas’s £750m kit deal if they miss out in the top four at the end of the season

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Jose Mourinho’s United  have not been having it easy for over a month now, as they have struggled between games, and their current form could hurt the club if cares are not taken.
United risked losing over £21million  in their £750m kit deal with Adidas, if they fail to finish in the top four this season. They finished fifth last season under former boss Louis van Gaal, with his successor Jose Mourinho under huge pressure to deliver a top-four finish this term at the very least.


Cliff Baty, United's chief financial officer,while reacting to this,  said:
 “There is a clause in the Adidas contract that if we are missing from the Champions League for two years in a row, there is a 30 per cent reduction of the following year's receipt.
“So what that really means is that we would get, if we did miss out again, that would kick in and we would see 30 per cent of the future annual payment reduced.
“For example, if we received £70m, 30 per cent of that would be £21m, that we would not receive. But that is spread over the remaining terms of the contract.
“So in actual accounting terms and recognition terms, if we do miss out this year, we would get a £2m hit over the 10 year contract, but of course this is year two of the contract, so we'd have a catch-up this year.
“So broadly, we would have a £4m reduction in the revenues in this current year, and then we would have a £2m reduction in revenues every year going on from then.”
United's first-quarter revenue - up to September 30 - was down £3.4m to £120.2m, with matchday income down 32.3 per cent to £16.8m.
The drop in income is largely due to United playing three fewer home games than in the same quarterly period in 2015.
Ed Woodward said: "Our financial results for this quarter reflect the impact of our non-participation in the Uefa Champions League."

Commercial revenue rose 4.4 per cent to £74.3m, with overall revenue for the year expected to be between £530m and £540m.

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