Since the announcement of its agreement with the team in March 2021, TeamViewer, the primary shirt sponsor of Manchester United, has seen more than 70% of its share price destroyed.
Despite only signing a five-year contract last year, TeamViewer, the primary shirt sponsor of Manchester United, has decided it does not wish to continue its sponsorship agreement with the team.
In March 2021, a £235 million contract was agreed by a German software business to take Chevrolet’s spot on the United jersey’s body. Since the agreement with United was announced in March 2021, TeamViewer’s share price has decreased by more than 70%.
Shareholders were not happy with the agreement when it was signed last year and were offended by how the enormous contract would affect business revenues. Financial analysts reportedly criticized TeamViewer’s partnership with United from the beginning, according to several newspapers in Germany.
In a statement, TeamViewer stated: “Over the past year, the relationship (with United) has undeniably increased the brand’s recognition on a global scale. However, the business has made the decision to reevaluate its long-term marketing plan.”
Oliver Steil, CEO of TeamViewer, stated that the current macroeconomic situation, which also includes the consequences of the pandemic and the crisis in Ukraine, has increased decision-makers’ prudence and delayed investments.
A statement from United read: “The partnership will offer Manchester United and its 1.1 billion fans and followers across the world to intriguing new technology drawing on TeamViewer’s expertise in remote connectivity services” at the time the agreement was announced 17 months prior. Through cutting-edge AR technologies and remote access to the Theatre of Dreams, TeamViewer will allow Manchester United to bring its supporters even closer to the team they love.
“Over 2.5 billion devices have TeamViewer installed on them, and it is used in almost every country in the world and has close to 600,000 members.
The company is the perfect fit for a football club that has developed a worldwide community of fans across cultures and countries due to its objectives to use technology to bridge gaps between people and businesses and promote digital advancement for everyone.”
