TeamViewer AG said that if Manchester United exercises an option to end the pricey sponsorship deal, the company could see “significant upside” to its margin beyond 2023 after forecasting stagnant growth this year.
(Bloomberg) — TeamViewer AG said that if Manchester United exercises an option to end the pricey sponsorship deal, the company could see “significant upside” to its margin beyond 2023 after forecasting stagnant growth this year.
TeamViewer wants to remain a “global partner,” but at a level “that’s significantly cheaper than what we had up until now,” Chief Executive Officer Oliver Steil said in a call with journalists on Tuesday.
The company reached an agreement late last year to cut short the sponsorship, which was originally slated to go through 2026. Under the terms of the deal, Manchester United will look for a new sponsor for the front of its shirts and TeamViewer will “transition out of this role as soon as practicably possible.”
Activist fund Petrus Advisers called TeamViewer’s deals with Manchester United and the Mercedes Formula 1 racing team “appalling judgment.” Media reports had pegged the value of the football deal at about £47 million ($56.6 million). Petrus disclosed a stake of just below 3% in TeamViewer in November.
Read More: Petrus Urges TeamViewer to End Man Utd, F1 Deals Early
TeamViewer jumped 15% to €14.06 at 12:52 p.m. in Frankfurt on Tuesday, after earlier gaining as much as 18%, the biggest intraday increase since November.
Read More: TeamViewer Soars on Buyback Plan and Sales Outlook: Street Wrap
The software company also projected revenue for the year above analyst expectations and announced plans to buy back as much as €150 million ($161 million) in shares.
(Updates with company comments from their financial report throughout. A previous version was corrected to reflect that Manchester United has the option to buy back shirt rights. The option has been previously reported.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.