Posted: 18:36, August 4, 2022 | Updated: 18:42, 4 August 2022
Manchester United’s shirt sponsor TeamViewer has been left cold over the £47m-a-year deal, just 18 months after it was announced.
The German company has confirmed that it will not extend the sponsorship when it runs out in 2026.
TeamViewer’s share price has lost four-fifths of its value since the global technology company replaced Chevrolet in the United shirt.
TeamViewer considers pulling out of Manchester United shirt sponsorship deal
The software company signed a five-year deal worth £235m just 18 months ago
The cost of the deal, which was met with skepticism on the German stock market at the time, has been blamed as one of the main reasons for the company’s struggles. Other factors include the war in Ukraine and the post-pandemic tech downturn.
A TeamViewer statement read: “The brand’s international awareness was clearly enhanced last year through the partnership (with United). However, the company has decided to review its long-term marketing strategy in light of the current macroeconomic environment.”
The company’s share price fell eight percent when it released its latest financial forecast on Wednesday, but rebounded 5 percent after it was announced the deal with United would expire.
Team Viewer chief executive Oliver Steil, who celebrated “two world-beating teams joining forces” when the sponsorship was announced in March last year, admitted he had changed his mind.
But club chiefs are said to be relaxed about the situation given the deal has four years left
“Decision makers in companies are becoming more cautious and postponing investment,” Steil said.
The news is a setback for United, who accepted a £17m cut in their £64m-a-year contract with Chevrolet to sign TeamViewer, despite higher offers being on the table.
However, the club are said to be relaxed about the situation given that the deal has another four years to run, and are confident of finding an excellent replacement.
United recently added several new partners and on Thursday announced a multi-year global agreement with Qualcomm Technologies.
The club has had a difficult pre-season, with struggles in the transfer market – for example Barcelona’s three-month pursuit of Frenkie de Jong – and the ongoing saga surrounding high-profile star Cristiano Ronaldo, who wants to leave.
