Manchester United shirt sponsor TeamViewer will not renew contract with club
Shares of TeamViewer have lost up to 80% of their value since a sponsorship deal with Manchester United was announced a year ago.
TeamViewer, the remote control software company, and a year-long sponsor that Manchester United wears on its shirt, has decided not to renew the sponsorship contract that they signed with the Premier League giants for five years once it expires in 2026. The company has lost 80% of its market value since it became associated with the English club.
The German company signed a £235 million contract in March 2021, replacing Chevrolet. A five-year agreement began, one that financial analysts in Germany have already branded as ineffective since TeamViewer signed it. The share price had fallen by 8% in the latest financial report presented on Wednesday. Once the announcement was made to withdraw the agreement with Manchester United, the company recovered 5%.
A TeamViewer statement read: “The international awareness of the brand was clearly increased last year through the partnership (with United). Nevertheless, the company has decided to review its long-term marketing strategy in light of the current macro-economic environment.”
According to the Daily Mail, United accepted a £17m reduction on their £64m-a-year deal with Chevrolet to sign with TeamViewer, even though there were higher offers on the table.