Manchester United’s decision to opt out of their shirt sponsorship deal with German technology giant TeamViewer could open the way for a far more lucrative arrangement.
United have cut short a five-year, £235 million deal just 18 months after it began, with the early termination not only helping to reduce the liabilities for the computer software company but also freeing up the Red Devils to find a new partner elsewhere.
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The shirt sponsorship agreement was initially announced in March 2021, with the TeamViewer logo slated to appear on United’s shirts from the 2021-22 season through to the end of the 2025-26 campaign. But the £47m annual receipt was down on the previous arrangement with Chevrolet, which had an average value to the club of around £53m between 2014 and 2021.
Having signed the deal while stadiums remained empty due to the Covid-19 pandemic, some considered at the time that United had done well to secure a contract guaranteeing them such a large annual sum. But the resilience of football’s market has led the club to believe they can now return to the market for a more lucrative deal with a new flagship sponsor.
And after seeing its total market value drop from $10.84 billion (around £9bn) in 2020 to $2.61bn (around £2.1bn) in 2022, TeamViewer was reportedly keen to reduce its costs over the coming years, making the early termination mutually beneficial. The firm will remain a global partner of United’s, but their financial commitment will be reduced by around 90 per cent as a result of the review of the shirt deal.
The company admitted in a statement in August that they would be looking to make changes to their existing arrangement with United, saying: “The company has decided to review its long-term marketing strategy in light of the current macro-economic environment.
“In addition, the company has already communicated its desire to explore opportunities to amend the existing contract.”
The TeamViewer logo will remain on United’s shirts until a new main partner is found, while United go back into the market for a new sponsor at a time when the future of the club is up in the air after the Glazer family confirmed recently that they would “consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company.”
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