Man Utd confident they can avoid £75m blow despite Adidas' struggles (Mirror)
Manchester United are confident that they will not be left with a £75million hole in their finances after kit manufacturers Adidas hit financial trouble.
United are one of six Premier League clubs who have their shirts made by the German sportswear giants.
And Old Trafford bosses are aware that Adidas have asked the German government about a £1.75billion bail-out after their business was floored by the coronavirus crisis.
Just as alarming is that Adidas have failed to meet a scheduled payment to Brazilian club Flamengo at the start of the month.
There was no warning that the payment would be missed.
But Adidas have informed the Rio de Janeiro giants that the money is later because of cash problems caused by the covid-19 pandemic and that rivals Sao Paulo, Cruzeiro and Internacional will also be affected.
But United believe that the financial issues affecting those four clubs are with the company's South America subsidiary and will not impact in Europe.
An Old Trafford 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."
Arsenal, Leicester, Sheffield United and Watford and Wolves also have their kits manufactured by the company.
United are halfway through the 10-year deal they signed with Adidas in 2015.
It is worth a bank-busting £750million over the term of the contract.
Arsenal bank £60million-a-season from the five-year agreement they signed last summer.
Adidas had a global turnover of £21.92billion last year and had cash revenues of £873million in the bank.
But they have been in talks with state-owned bank KfW about a loan of between £900million and £1.75billion.
The fact that they were unable to meet a payment to Flamengo of less than £1.5million is a worrying development.
European giants Real Madrid, Bayern Munich and Juventus all have kits manufactured by the company, as do the international teams of Scotland, Wales and Northern Ireland.
The firm has a huge presence across the full sporting spectrum and also has endorsement commitments with top stars like Lionel Messi and Paul Pogba.
United are one of six Premier League clubs who have their shirts made by the German sportswear giants.
And Old Trafford bosses are aware that Adidas have asked the German government about a £1.75billion bail-out after their business was floored by the coronavirus crisis.
Just as alarming is that Adidas have failed to meet a scheduled payment to Brazilian club Flamengo at the start of the month.
There was no warning that the payment would be missed.
But Adidas have informed the Rio de Janeiro giants that the money is later because of cash problems caused by the covid-19 pandemic and that rivals Sao Paulo, Cruzeiro and Internacional will also be affected.
But United believe that the financial issues affecting those four clubs are with the company's South America subsidiary and will not impact in Europe.
An Old Trafford 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."
Arsenal, Leicester, Sheffield United and Watford and Wolves also have their kits manufactured by the company.
United are halfway through the 10-year deal they signed with Adidas in 2015.
It is worth a bank-busting £750million over the term of the contract.
Arsenal bank £60million-a-season from the five-year agreement they signed last summer.
Adidas had a global turnover of £21.92billion last year and had cash revenues of £873million in the bank.
But they have been in talks with state-owned bank KfW about a loan of between £900million and £1.75billion.
The fact that they were unable to meet a payment to Flamengo of less than £1.5million is a worrying development.
European giants Real Madrid, Bayern Munich and Juventus all have kits manufactured by the company, as do the international teams of Scotland, Wales and Northern Ireland.
The firm has a huge presence across the full sporting spectrum and also has endorsement commitments with top stars like Lionel Messi and Paul Pogba.
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