TeamViewer stock collapse after Manchester United deal

Manchester United have announced their new jersey sponsor for the next 5 years: it will be TeamViewer, a rapidly growing German company that deals with remote assistance of computer software. Binding to a very strong brand known all over the world - they exceed one billion followers on social networks - like United should be a guarantee of success, but not in the short term. Shares of the tech giant have lost 10.8 percentage points from the day before the announcement, one of the biggest drops since the company went public. The main reason, according to George Webb, an analyst at Morgan Stanley, is the cost of the new agreement which is around 260 million euros over 5 years. Shares of TeamViewer fell by 16% and the market reacted in the opposite way to what the German company expected.

TeamViewer, despite a stormy start, will replace Chevrolet after 6 seasons spent on the adidas Red Devils jerseys. The path between the American brand and the English team began in the 2014-15 season without ever entering the history of the club given the period of inevitable transition after the farewell of Sir Alex Ferguson. The British tabloids were the first to publish the figures of the agreement (55 million euros per season), a sum that is close to what Rakuten pays into the coffers of Barcelona.