TeamViewer urged to end sponsorship deal with Manchester United by activist fund
TeamViewer have been urged to end their sponsorship deal with Manchester United by activist fund Petrus Advisers, according to Bloomberg via Swiss Info.
As well as sponsoring Mercedes Formula One racing team, Petrus labelled TeamViewer’s deals an “appalling judgement” in a letter to the German IT services company’s CEO.
TeamViewer is reportedly paying Manchester United £47.5 million ($57 million) annually until 2026 as a shirt sponsor.
In August, TeamViewer’s CEO Oliver Steil said he wouldn’t renew the Manchester United contract beyond 2026.
But there is also reportedly a desire for the remote working software business to look at amending the existing contract with the Red Devils.
But Petrus want TeamViewer to take more drastic action to address the firm’s cost base and cut ties with the twenty-time league champions immediately.
“We demand that you stop bleeding millions and rapidly disengage from this mess,” Petrus said in the letter, which was reviewed by Bloomberg News.
“We therefore demand that you enter professional exit discussions with a clear goal of a quick solution and that you do it immediately.”
TeamViewer urged to end sponsorship deal with Manchester United
According to the report: “The deals with Manchester United and the F1 team were supposed to help build a global brand, but TeamViewer has struggled with large rivals entering the market and the work-from-home boom waning.”
Shares in TeamViewer reportedly rose as much as 3.3% in early trading on Thursday (17 November). The stock was up 2.6% at 9:21 am in Frankfurt, giving the company a market value of €2 billion.
The tech company’s value topped €10 billion at its mid-2020 peak, but TeamViewer’s appeal has faded over the past year and a half.
The report also cited that the re-signing of Cristiano Ronaldo hasn’t done enough to ‘save’ TeamViewer.