TeamViewer have confirmed that they will not extend their shirt sponsorship deal with Manchester United when their current agreement expires in 2026.
The German software company agreed a £47m-a-year deal with United just 18 months ago – a sum which was criticised by a number of financial experts – but have seen share prices fall by 80% since taking over from former sponsors Chevrolet.
While external factors have contributed to the company’s tricky financial situation, the £235m deal has been blamed by many for leaving TeamViewer in turmoil.
“The international awareness of the brand was clearly increased last year through the partnership [with United],” a TeamViewer statement read. “Nevertheless, the company has decided to review its long-term marketing strategy in light of the current macro-economic environment.”
Listen now to The Promised Land, 90min’s Manchester United podcast! This week, Scott Saunders and Rob Blanchette preview the new season and discuss the futures of Cristiano Ronaldo and Frenkie de Jong…
Share prices in TeamViewer fell by 8% in its latest financial forecast, but recovered by 5% following the announcement that it would walk away from the United deal.
Company CEO CEO Oliver Steil added: “The current macro-economic environment [including the effects of the pandemic and the war in Ukraine] has made decision-makers more cautious, and has postponed investments.”
United, who are believed to have turned down more lucrative offers in favour of inking a deal with TeamViewer, are not worried by the revelation and are relaxed about finding a replacement by the time the current sponsorship deal ends in 2026.