Manchester United’s shirt sponsor TeamViewer have got cold feet over the £47million-a-year deal just 18 months after it was announced.
The German company have 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 on the United shirt.
The cost of the deal, met with scepticism 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 a downturn in the tech sector post-pandemic.
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.’
The company’s share price fell by eight per cent when it published its latest financial forecast on Wednesday, but recovered by five per cent after it was announced that the United deal will end.
Team Viewer’s chief executive Oliver Steil, who celebrated ‘two global winning teams join forces’ when the sponsorship was announced in March last year, admitted there had been a change of heart.
‘Decision-makers in companies are becoming more cautious and are postponing investments,’ said Steil.
The news is a setback for United who 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.
However, the club is said to be relaxed about the situation considering the deal has another four years to run, and confident of finding a stellar replacement.
United have added a number of new partners recently and on Thursday announced a multi-year global deal with Qualcomm Technologies.
The club has suffered a difficult pre-season, with struggles in the transfer market – for example the three-month pursuit of Barcelona’s Frenkie de Jong – and the ongoing saga around high-profile star Cristiano Ronaldo, who wants to leave.