Nike could pull plug on Manchester United sponsorship deal

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Nike has warned the Premier League club that it could end its £303m sponsorship deal unless the club improves its performance on the playing field.

According to media reports, Nike's vice-president of sports marketing Ian Todd has put a question mark over the future of the 13-year kit deal, which started in 2002. "We don't know what is going to happen next year. All options are open... if, for example, United failed to qualify for the Champions League next season that might be a problem."

It is understood Nike has a break clause that can be triggered at the end of the 2007/08 season. This would be a huge financial blow to the club because the sportswear giant's contribution is understood to be around 10% of the club's annual revenue and worth an estimated £130m over the first six years of the deal. The comments from Nike are the latest blow to the club, which failed to win a trophy this season and has been taken over by US sports tycoon Malcolm Glazer amid fury from many fans.