Manchester United have terminated a £235million shirt sponsorship deal with TeamViewer and are searching for new sponsors.
The Old Trafford club agreed to cut short their £235million deal with TeamViewer, and have decided to buy back the rights to the agreement.
TeamViewer reportedly fell out with Manchester United in August, just 18 months into the five-year agreement. The company had reportedly planned not to renew the deal which would have expired in 2026.
Before TeamViewer struck a deal with the Premier League giants, it was Chevrolet who were Manchester United’s official shirt sponsors.
Reports have it that losses incurred by TeamViewer are the major factor that has informed their decision to terminate the contract.
They have reportedly lost four-fifths of its value amid concerns they had overstretched by committing to the £47m-a-year deal.
The two sides have now agreed an exit strategy, with United confirming that they have ‘reached a mutually beneficial agreement under which Manchester United shall have the option to buy back the rights to the club’s shirt front sponsorship.’
Manchester United’s statement pointed out that the deal with TeamViewer was signed on the eve of the Covid-19 pandemic.
After confirming the decision to buy back the agreement, the Red Devils said they are now looking at securing a better sponsorship for the club.
However, TeamViewer will remain on United’s shirts until the club has found a replacement.
TeamViewer reportedly negotiated a lower price than Chevrolet when they signed the deal. The deal was said to be worth £17million less than Chevrolet’s.
Manchester United believes the condition under which the deal was signed put the club at a disadvantage. Now, after ending the deal with the German Tech giant, the club will now be chasing a better deal in the ‘normalised market’ without the impacts or effects of Covid.
The news of the contract termination is coming after TeamViewer released a statement last month suggesting that the firm would be ‘reviewing their long-term strategy’ with the club.
Investment firm Petrus Advisers, who are believed to have a 3 percent stake in TeamViewer, had also claimed that the £235m deal was ‘a sign of appalling judgement.’
Interestingly, the development is coming at the backdrop of the Glazers’ decision to sell the club.
The Glazers announced in November that they were interested in selling the football team and had started to look for potential bidders after 17-years in control at the club.
Sources close to the club suggested earlier this week that ecommerce giant Amazon are interested in bidding for Man United, despite the club’s financial advisors, Raine Group, setting a whopping £7bn asking price.
