Manchester United ‘in talks’ with Qualcomm over front-of-shirt deal. The Premier League club are in talks to expand its association with the technology company to include front-of-shirt sponsorship rights.
Qualcomm first signed a sponsorship agreement with Manchester United ahead of the 2022-23 season, a deal which focused on its Snapdragon brand, a platform which underpins 5G connectivity in many smartphones, PCs and gaming devices and which also has applications in connected cars and smart wearable devices.
Now, The Athletic reports that the parties are in discussions about expanding this to include a front-of-shirt contract, with the club seeking £60m ($74.8m/€69.9m) a year for its premier sponsorship position. Despite having signed a five-year agreement with German software company TeamViewer that was set to expire at the end of the 2025-26 season, the club has been searching for a new shirt sponsor after a buy-back option was agreed on the TeamViewer contract in December 2022, which will be activated as soon as the club identifies a replacement.
Manchester United ‘in talks’ with Qualcomm over front-of-shirt deal.
The TeamViewer deal is understood to be worth £47m a year. The brand will remain a part of the club’s sponsorship portfolio as a global sponsor if and when It is replaced on the front of the club’s shirt. At the time the buy-back option was agreed, TeamViewer had lost 80 per cent of its share value, with shares trading at £10.55 compared to £31.65. Reports suggest that factors such the Ukraine war and the effects of the pandemic have impacted on its business. A TeamViewer statement from last year read: “The international awareness of the brand was clearly increased last year through the partnership [with United]. Nevertheless, the company has decided to review its long-term marketing strategy in light of the current macro-economic environment.” Any deal with Qualcomm to replace Teamviewer would be unlikely to kick in until the start of the 2024-25 season, with the club’s kit design established and a vast swath of replica kits featuring Teamviewer already sold.
Qualcomm’s current agreement with Manchester United includes the provision of consultancy services to support the planned upgrade of the mobile connectivity at its Old Trafford stadium. The company’s presence in sport sponsorship tends to focus on its Snapdragon brand, which is also activated as part of its deal with the Mercedes Formula 1 team. It also gives its name to San Diego State University’s stadium, known as Snapdragon Stadium, as part of a 15-year naming rights agreement.
The future ownership of Manchester United remains uncertain. Last week, United’s share price suffered its biggest one-day decline following reports that the sale of the club by the Glazer family has been postponed indefinitely.
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SOURCE: https://www.sportbusiness.com/