TEAMVIEWER will end their shirt sponsorship of Manchester United when their contract expires in 2026.
The five-year deal, worth £235million, has negatively affected the share price of the German tech company.
In fact, TeamViewer’s share price has lost four-fifths of its value since the deal was announced – with shares now trading at £9.11 compared to £31.65 on 19 March 2021.
The software company revealed other factors have negatively impacted investment, including the Ukraine war and the effects of the pandemic.
But the share price increased by five per cent after TeamViewer announced they will not renew their agreement with United.
A company statement read: “The international awareness of the brand was clearly increased last year through the partnership (with United).
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“Nevertheless, the company has decided to review its long-term marketing strategy in light of the current macro-economic environment.”
TeamViewer CEO Oliver Steil added: “The current macro-economic environment [including the effects of the pandemic and the war in Ukraine] has made decision-makers more cautious, and has postponed investments.”
It is a blow for United, who reportedly accepted a deal with TeamViewer to be shirt sponsors despite better offers from elsewhere.
Previous sponsor Chevrolet paid £17m-a-year more but United are confident they can find a suitable replacement for TeamViewer, report the Daily Mail.
On Thursday United announced a multi-year global strategic collaboration with Qualcomm Technologies in a bid to improve fan experience at Old Trafford.
It has already had a slight but positive impact on United’s share price with an increase of 40p.
United’s shareholders will be grateful for any increase after the share price dropped to an all-time low in June and then again in July, trading at a low of £8.58 compared to a high of £20.07 in September 2021.
The fall in share price can be put down to economic fears in the market as well as the club’s preparations to overhaul the squad and regenerate the stadium.
United’s debt has also risen by almost 12 per cent over the last year – the figure now stands at £495.7m.
By: Kealan Hughes
Title: Man Utd shirt sponsors TeamViewer will NOT renew contract with club as they blame £47m-a-year deal for stock price drop
Sourced From: www.thesun.co.uk/sport/football/19424079/man-utd-shirt-sponsors-teamviewer-stock-price/
Published Date: Fri, 05 Aug 2022 05:56:49 +0000