Manchester United could lose a hugely-lucrative £900 million deal if a contract clause is triggered.
Man United were condemned to their ninth league defeat of the season on Monday when they suffered a crushing 2-0 home defeat to Newcastle United.
After the game, Ruben Amorim said that it is 'really clear' the Red Devils are in a relegation battle as the are just seven points above the bottom three.
"That is really clear [United are being dragged into a relegation battle] so we have to fight," Amorim told Sky Sports.
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"It is a really difficult moment, one of the more difficult moments in the history of Manchester United and we have to address it with honesty."
If Man United were relegated from the Premier League, then the club's £900 million kit deal with Adidas could be terminated.
According to The Telegraph, Adidas have the power under the terms of their 10-year agreement with Man United to end the entire £90 million-a-year deal at one full season's notice if the club were to drop into the Championship.
Another scenario could also see Adidas reduce payments for a year by half to £45 million if Man United dropped out of England's top flight.
In Man United's accounts to June 30 last year, the club document the 'penalties' they could face under the terms of their deal with Adidas in the event of relegation.
It read: "Adidas may reduce the applicable payments for a year by 50 per cent if the men’s first team is not participating in the English Premier League during that year.
"In addition, Adidas may terminate the "agreement by giving one full-season’s notice if the men’s first team is relegated from the English Premier League or if it is otherwise determined that the men’s first team shall not be participating in the Premier League or the top English league."
Man United penned a 10-year extension with Adidas back in July 2023, replacing their previous agreement with the sportswear giant, which was worth £750 million.
Topics: Manchester United, Football
Nasir Jabbar