The per-year UK£47.5 million (US$57.2 million) deal was signed in March 2021 for five years till 2026. Just one year after signing the association, the software company unveiled that it’s not receiving a full return on investment.
While revealing the decision of not extending the sponsorship, TeamViewer said, “TeamViewer does not intend to extend the sponsorship agreement with Manchester United beyond its term. While the partnership and its brand-building effect has been positive over the past year, the company has decided to reassess its long-term marketing strategy in light of the current macro environment.”
The statement added, “Having successfully implemented short-term measures to improve the bottom line, such as parts of ReMax and the refinancing, the company is now increasingly focusing on medium-term measures to ensure and increase its high profitability. TeamViewer expects that the combined effect of these measures will result in a significant improvement in the company’s margin following the end of the current sponsorship agreement.”
Since the signing of the deal with Manchester United last year, TeamViewer has witnessed a drop of more than 71 per cent in its share price.
The Red Devils will be looking for a suitable replacement before the partnership concludes.
The sales team of the English top flight club has done a great job ahead of the commencement of the new season. Manchester United have recently signed deals with Sportsbreaks, Qualcomm Technologies, and DXC Technology.