Manchester United are at a risk of losing a sponsorship deal worth £235million with their shirt sponsor, TeamViewer.
According to reports, the brand could be set to pull the plug on its £235million deal with the Premier League club.
Investors are reportedly pressing The German technology company to review their contract with the Old Trafford club, which is described as ‘a sign of appalling judgement’.
According to reports , the £47million-a-year agreement could end sooner rather than later following a stern letter from investors Petrus Advisers.
In August, TeamViewer reportedly confirmed that they will not renew their current contract, which expires in 2026, but there are fears they could look for a way out sooner.
TeamViewer’s deal is United’s second largest commercial contract – behind the £750m kit deal with Adidas.
The company, who signed with United in 2021, specialise in remote access and remote control computer software and say ‘the international awareness of the brand was clearly increased last year through the partnership’.
A TeamViewer statement, brought about after the warning by Petrus Advisers, confirmed that the company has decided to review its long-term marketing strategy in light of the current macroeconomic environment, nevertheless.
Also, the company has already communicated its desire to explore opportunities to amend the existing contract with United.
The London-based investment firm, which owns a three percent stake in the company, asked active investors not to spend ca. 1.4x net profit or over €70million per year on sponsorship contracts with Manchester United.
While the statement by Petrus Advisers is coming when Manchester United are at loggerheads with their most popular player Cristiano Ronaldo, it is believed that the dip in share prices might also necessitate the move.
However, the timing of the statement from Petrus Advisers, coming amid stern protests from Untied fans aimed at the Glazer family, calls for further probe.
Meanwhile, it is reported that fan groups are planning to turn their attention and protests to club sponsors as a means of trying to push the Glazers out of the club.
Hence, Petrus Advisers’ frustrations aimed at TeamViewer themselves rather than United are not unrelated to the crisis at Old Trafford.
Before Cristiano Ronaldo’s interview, some Manchester United fans were already calling on the Glazers to hand off the club due to alleged mismanagement and unnecessary profiteering.
Ronaldo only added more impetus to the seething discontent among fans when he granted the bombshell interview bringing the rot at Old Trafford to the media space.
Apart from using the opportunity to slam his critics, Ronaldo’s interview was a big blow to the club’s image and must have worked well in painting a grotesque of the club in front of potential sponsors and existing ones.
Ronaldo has now become the first social media personality to hit 500 million followers, and no doubt any club he joins will definitely cash in on his massive following for more revenues.
As it stand, the Red Devils are set to tear off Cristiano Ronaldo’s contract following the interview. However, that will not be without consequences on the club’s marketability to potential sponsorships.