Manchester United ‘have no fears over Adidas’ financial trouble and confident they will receive £75m in sponsorship money despite kit makers missing £1.5m payment to Flamengo and asking for a £1.75bn bail-out’
- Adidas have hit financial problems as a result of the coronavirus pandemic
- The German sportswear manufacturer failed to pay a cash sum to Flamengo
- Adidas has warned several other Brazilian clubs that payments will be delayed
- Learn more about how to help people impacted by COVID
Manchester United have reportedly dismissed concerns they could miss out on £75 million worth of income as a result of Adidas’ financial problems.
In 2015, Adidas agreed a 10-year deal with United to manufacture their kits, which was worth £750 million split into yearly instalments of £75m.
But the German sportswear manufacturer has hit financial problems after sales were hit by the coronavirus pandemic.
Manchester United are confident they won’t be affected by Adidas’ current financial problems
Adidas pay United £75m a season to make their kits but have asked for a government bail-out
United insiders say they don’t expect Adidas to make any late or deferred payments
Despite a global turnover of £29.92 billion last year and boasting cash revenues of £873m in the bank, they’ve been in talks with state-owned bank KfW about a loan of between £900million and £1.75billion.
Adidas recently failed to pay a £1.5m sum owed to Brazilian club Flamengo and confirmed the payment would be delayed as a result of the global health crisis.
The brand has also warned other Brazilian clubs, Cruizeiro, Internacional and Sao Paulo that instalments will be delayed in the coming weeks.
Adidas’ financial struggles has now sparked concerns that they will be unable to meet payments owed to their biggest clients, notably United.
Arsenal will also be concerned after signing a £60m a year deal with Adidas last summer
Premier League sides Arsenal, Wolves, Watford and Sheff United also have Adidas kit deals
But, according to the Mirror, an Old Trafford insider is confident that payments will be made on time and that the club won’t be left with a dent in their finances.
The insider said: ‘We have not had any contact with Adidas which would suggest they will have a problem meeting their contractual obligation with us.
‘As such, we don’t expect that any payments will be missed or deferred.’
A host of other Premier League clubs have their kits made by Adidas and will be concerned about the potential knock-on effect of their cash flow problems.
Arsenal signed a five-year deal with the brand last summer, which is worth £60m a season, while Sheffield United, Watford and Wolves also have lucrative deals.
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