Manchester United’s primary shirt sponsor TeamViewer have confirmed they will not renew their partnership with the club, just 12 months into a five-year £235m deal.
The German software company toasted their link-up with United as 'two global winning teams joining forces’ upon its announcement, but have quickly pulled the plug. The Daily Mail report that concerns over the company’s share price - which has lost four fifths of its value since the start of the arrangement - has forced the decision.
United had already taken a £17million hit in moving from Chevrolet to TeamViewer, with Old Trafford bosses rejecting bigger offers to sign up to the £47m-per-year arrangement. However, less than two years on, TeamViewer have confirmed that in “light of the macro-economic environment” they will not be extending beyond 2026.
“The international awareness of the brand was clearly increased last year through the partnership,” a TeamViewer statement reads. “Nevertheless, the company has decided to review its long-term marketing strategy in light of the current macro-economic environment.”
“Decision-makers in companies are becoming more cautious and are postponing investments,” the firm’s chief executive Oliver Steil added.
On a turbulent day on Wednesday, TeamViewer saw their stock price plummet following the release of their financial results - only to improve five points after news they would not extend United’s deal emerged.
The Red Devils’ current CEO Richard Arnold is credited with negotiating a number of the club’s biggest sponsorship deals and had spoken in glowing terms about the process to get their current shirt deal completed.
"The process of finding a shirt sponsor was incredibly successful. We had more than 10 participants in the final phase,” he explained last year. "We were able to choose between partners, which is a very fortunate situation to be in, in the context [of the pandemic]. It's a really exciting deal for the club.
"We won't talk about money and it being the biggest deal and how it compares. Obviously it's strong. We're Manchester United and so that's not a surprise."
United bosses are said to not be overly concerned with the update, considering they still have four years to find a replacement and are confident that it will be arranged in due time.
Arnold made headlines this summer after a meeting with supporters in a Manchester pub went viral across social media. Ed Woodward’s replacement held the face-to-face chat with a select few, where amongst other topics, investment in both the squad and the dilapidated stadium were addressed.
“For the future, for investing in a new stadium and a latest-and-greatest training ground we’ve got to do something. We’ve got to get investors in,” he explained.
"I need that to do what I want for the club. I’ve got to have more cash now because no club in the world has the money to build a new stadium. You either borrow it or invest it. The money has got to come from somewhere.”
Erik ten Hag has so far managed to add three players to his United squad, with Lisandro Martinez and Tyrell Malacia arriving for fees and Christian Eriksen signing on a free. Ten Hag would like more reinforcements and will hope to be backed by the Glazer family before the September 1 deadline.
