Man Utd could face Adidas penalty after PL coronavirus suspension
Posted On March 16, 2020
Manchester United are set to pay a £22.5million penalty if they fail to qualify for the Champions League for the second year in a row – which could be a problem should the season be voided due to coronavirus.
United face a 30 our cent pay cut as part of their world record £750million sponsorship deal with Adidas, should they go back-to-back seasons outside Europe’s showcase competition, reports the Evening Standard.
But given the exceptional circumstances due to coronavirus, such a clause may not be enforced.
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Premier League football has been suspended until April 3, with the intention to fulfil the remaining fixtures once the season is resumed, but it remains uncertain when football will return.
Measures such as ending the season early or voiding it completely may have to be considered, hampering the Red Devil’s hopes of a return to the Champions League.
In a filing to the Securities and Exchange Commission, United stated: “Revenue is currently being recognised based on management’s estimate as at 31 December 2019 that the full minimum guarantee amount is the most likely amount that will be received, as management does not expect two consecutive seasons of non-participation in the Champions League.”