Man Utd sale chances boosted after sponsorship agreement

Suraj Radia

15 Dec 2022 22:31 GMT
2 min read

Manchester United have reached an agreement with TeamViewer allowing the club the option to buy back the rights to their shirt sponsorship.

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United signed a £235 million deal with the company in 2021 to receive £47m a year over five years, with TeamViewer replacing Chevrolet as the club’s front-of-shirt sponsor.

However, the German software company announced earlier this year that they wouldn’t be renewing their partnership with United when the deal expires in 2026.

The club have now confirmed that a ‘mutually-beneficial’ agreement has been signed to allow United a ‘focused sales process’ for a new ‘long-term shirt front partner’ to allow TeamViewer to ‘transition out of this role as soon as practically possible’.

“Once a new shirt front partner is selected and takes on this role, TeamViewer AG will remain part of Manchester United’s partner ecosystem until the end of the original contract term, with an adapted scope of partnership,” a club statement explained.

“This would lead to a substantial reduction of partnership volume to a single-digit million USD amount p.a., resulting in a significant positive impact on TeamViewer’s profitability.”

How does this news affect United’s chances of selling the club?

The Glazer family last month announced their intention to ‘explore strategic alternatives’ for United, which included the owners searching for external investment or completely selling the club.

While there is no official timescale for a resolution, reports have suggested a sale could be finalised by the end of the season, with the Glazers having held talks with prospective investors for most of the year.

DETAILS: When could Man Utd sale be finalised?

Although TeamViewer’s deal with United is the biggest shirt sponsorship in the Premier League, the long-term contract could be a stumbling block for potential new owners who may look to associate with their own partner brands.

Real Madrid currently have the biggest shirt sponsorship deal of any team, receiving €70m (£61m) per year from Emirates and United may wish to look for a new contract of a similar amount.

TeamViewer had also been told by investors that the deal with United was an act of ‘appalling judgement’ due to the company ‘bleeding millions’, a stance which did not reflect well on a brand associated with the club.

As a result, the flexibility now available to any new owners would allow for an easier sale and a smoother transition into the post-Glazers era.

Read more about: Premier League, Man Utd