Not the best start! Manchester United’s new shirt partner TeamViewer sees their share value DROP by 16% after deal was struck…. and reports in the US hint the Red Devils will receive LESS than the reported £47m-per-season windfall
- Manchester United’s new shirt sponsors took a big financial hit on Friday
- TeamViewer’s share valued dropped by 16% after concerns over the deal’s cost
- Reports in the US are suggesting United won’t receive as much as first thought
- Initial reports were of £47m-per-season but true figure may be somewhat lower
Manchester United’s new shirt sponsor TeamViewer suffered a share slump on Friday as concerns over the cost of the sponsorship deal mounted.
It was a change in fortunes for the technology firm, after seeing the valuation of the company rise dramatically during the course of the pandemic.
But Bloomberg report that the stroke dropped as much as 16 per cent on Friday, and they are not the first company to have a negative impact after partnering with Manchester United.
A mocked up version of Man United’s kit, featuring Bruno Fernandes, shows how it could look with the TeamViewer logo
TeamViewer saw their share value drop by 16% on Friday due to concerns over sponsorship
The sponsorship deal with Manchester United – the club’s executive vice-chairman Ed Woodward pictured – may be less lucrative for club than first thought
Joel Ewanick, global marketing chief at Chevrolet and the man who agreed a previous shirt partnership for United, was axed within 48 hours of the deal being announced.
TeamViewer’s marketing expenses are expecting to increase significantly as a result of the sponsorship, but what will be more of a concern for United is that reports in the US are suggesting the club will receive less than the £47m-a-season that had been reported.
The five year deal, announced earlier this week, was already slightly down from the £52m the club are believed to have received annually from Chevrolet, but a reduction in the terms reported earlier in the week would be a blow.
Car manufacturer Chevrolet have been the club’s principle kit sponors since 2014
While the exact figure is still uncertain, market experts have suggested the deal is a positive one for United, particularly after a year in which finances were badly hit as a result of the pandemic and twelve months without crowds.
‘There are fewer companies in the market place now,’ said Dr Rob Wilson, head of finance at Sheffield Hallam University.
‘From a corporate point of view, companies have seen a downturn and it does not look right to spend a lot of money on shirt sponsorship.
‘And as a proposition Manchester United is not as strong as it used to be.
‘My expectation was that they would have to settle for a deal of shorter duration and if they matched the money they made with Chevrolet that would be extraordinary.’
United signed their seven-year deal with Chevrolet in 2012, becoming active in 2014
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