Manchester United’s £900 million kit deal with Adidas could be terminated by the German sportswear giant if the club were relegated from the Premier League.

Adidas has the power under the terms of its 10-year agreement with United to scrap the entire £90 million-a-year contract at one full-season’s notice if the club were to drop out of England’s top flight.

Alternatively, Adidas could reduce payments for a year by half to £45 million if United’s worst fears were realised and the club was relegated.

Ruben Amorim said it was “really clear” United were in a relegation battle after they slumped to a fifth defeat in six league games following Monday’s dire 2-0 loss at home to Newcastle.

United face league leaders Liverpool at Anfield on Sunday with the team currently in 14th position, seven points above the drop zone.

In United’s accounts to June 30 last year, which were published in September, the club document the penalties they could face under the terms of their deal with Adidas in the event of relegation.

The details 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.”

United signed a 10-year extension with Adidas in July 2023 that replaced their previous arrangement with the company, which was worth £750 million.

The new deal runs until June 2035 and includes a £10 million penalty in the event United fail to qualify for the Champions League this season.

The club said: “This clause has been amended to state that a £10 million deduction will be applied for each year of non-participation in the Uefa Champions League, commencing from the 2025-26 season.”

United list an array of risk factors in their accounts that could affect the club’s income, including the prospect of relegation from the Premier League.

“Our performance in the Premier League directly affects, and a weak performance in the Premier League could adversely affect, our business, results of operations, financial condition and cash flow,” the club state.

“For example, our revenue from the sale of products, media rights, tickets and hospitality would fall considerably if our men’s first team were relegated from, or otherwise ceased to play in, the Premier League, the Champions League, the Europa League or the Conference League.

“We cannot ensure that our men’s first team will be successful in the Premier League or in the other leagues and tournaments in which it plays.

“Relegation from the Premier League or a general decline in the success of our men’s first team, particularly in consecutive seasons, may negatively affect our ability to attract or retain talented players and coaching staff, as well as supporters, sponsors and other commercial partners, which would have a material adverse effect on our business, results of operations, financial condition and cash flow.”