Manchester United is on the lookout for a new front-of shirt-sponsor as it announces a premature end to its TeamViewer partnership.
A five-year deal was signed with the German company to replace Chevrolet in March 2021. TeamViewer investor Petrus Advisers described the decision to cooperate on a deal of this length during the pandemic as “appalling judgement”.
The investment fund – which has a 3% stake in the firm – had been putting pressure on the remote working software provider to call time on its sports sponsorship activity – not just with Manchester United, but also with the Mercedes F1 racing team.
“Manchester United and TeamViewer AG have reached a mutually-beneficial agreement under which Manchester United shall have the option to buy back the rights to the club’s shirt front sponsorship,” the club explained.
“Once a new shirt front partner is selected and takes on this role, TeamViewer will continue as a valued member of Manchester United’s suite of global partners, providing Manchester United with remote connectivity solutions, until the end of the original contract term in 2026.”
The top-flight side has asserted that it will be taking the opportunity to commence a focused sales process for a new shirt front partner in a ‘normalised market’.
The news comes shortly after the announcement of the sale of the club, as the Glazers family look to ‘explore strategic alternatives’, with current interest from several parties such as Sir Jim Ratcliffe.
Since the partnership’s debut, TeamViewer has benefitted from significant exposure at the Premier League club.
The company’s name will remain on United’s shirts until a new sponsor is found, which may be complicated by the current economic circumstances, with many firms reducing their marketing spend.
George Harborne, Director of SBC Sponsorship, stated: “Given the context of reported drop in income from the Chevrolet deal was highlighted at the launch of the partnership, followed by the announcement that Teamviewer wouldn’t renew the deal at the beginning of the second year of the term, this latest update feels almost like an inevitable conclusion as the main sponsor of Manchester United.”
Originally, it was announced in August this year that the £235 million shirt sponsorship with TeamViewer would not be renewed after 2026, but this now looks to come to a sharp end.
Harborne continued: “The original agreement was struck during a difficult market environment, and the club has referenced this with their intent to seek to resell the opportunity in a ‘normalised market’. This outcome feels like a win for Teamviewer too following shareholder pressure.
“Despite that shareholder pressure, Teamviewer will have to be pleased with the immense value that the partnership has delivered them, from being front and centre for the return of Ronaldo, to this latest twist in the partnership providing another wave of exposure for a brand that is now known around the world thanks to their partnership with Manchester United.
“For the club, there is now an opportunity to secure a partnership more in line with what their original aspirations would’ve been back in 2021, save for the extraordinary market pressures that existed at the time.”
Manchester United stated that no further announcement will be made until the club has selected a new partner replacement.
