© Reuters
By Scott Kanowsky
Investing.com — Shares in TeamViewer AG (ETR:) rose on Friday after the German software development firm announced it had reached an agreement with Manchester United Ltd (NYSE:) that will allow the high-profile football club to buy back the rights to its lucrative shirt sponsorship.
In a statement, TeamViewer said this arrangement will give Manchester United the ability to begin a search for a new shirt front sponsor.
TeamViewer, which replaced Chevrolet as the Premier League side’s front-shirt sponsor in a five-year, £235 million deal in March 2021, is expected to transition out of this role “as soon as practicably possible.”
The move will reduce TeamViewer’s partnership volume with Manchester United to a “single-digit million U.S. dollar amount” per year, according to the company. This will result in a “significant positive impact” on its profitability, TeamViewer added.
The Göppingen-based firm, which specializes in remote control software and remote access, previously said in November that it planned to review its partnership agreement with Manchester United following intense backlash from investors Petrus Advisers. The investment group questioned TeamViewer’s spending on sponsorship contracts with Manchester United and the Mercedes Formula 1 team, arguing that the company is “not , or .”
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