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COMMERCIAL AWARENESS: MANCHESTER UNITED IN SHIRT SPONSORSHIP DEAL WITH GERMAN COMPANY

English Premier League football team, Manchester United, has recently (19th March 2021) announced a shirt sponsorship deal with TeamViewer, a German company focused on cloud-based technologies to enable online remote support and global collaboration [1]. From next season, Manchester United will no longer sport its current sponsor, Chevrolet, on its shirts, but that of the German software company.


According to reports in the English daily newspaper, The Guardian [2], Manchester United believe that ‘the deal is the most lucrative struck during the pandemic by any sports team…’ It is a deal worth around £235 million to the club. The deal draws a line under the shirt sponsorship deal the club has had with Chevrolet for the past seven years. TeamViewer will be the only German company which sponsors a club shirt in the English Premier League.


TeamViewer offers a ‘freemium’ strategy. That means that it is free for individuals to use, but once it starts to be used commercially, a charge will apply. Presumably, the main incentive for TeamView to enter into this sponsorship deal is to raise global awareness of its brand by linking up with an internationally famous football club, and brand, like ‘the Red Devils’ [3]. Manchester United, reputedly, has a fan base of around 1.1 billion people worldwide.


One downside of the announcement of the deal was the immediate fall in its share price of around 11%. However, some analysts think that the deal will pay off in the longer term. An analyst at Morgan Stanley said:


“We believe the marketing exposure TeamViewer will garner from the deal could significantly aid the company's traction. As a result, we would view the share price reaction today as a buying opportunity."


[1] https://www.teamviewer.com/en/company/

[2] https://www.theguardian.com/football/2021/mar/19/manchester-united-sign-235m-shirt-sponsorship-deal-with-teamviewer

[3] ‘The Red Devils’ is the nickname of Manchester United Football Club.



Exercise

What word or phrase in the text above means:

1. To wear or display a distinctive item or logo [paragraph 1]

2. producing a lot of financial profit or gain. [paragraph 2]

3. to finish something (usually a bad or negative situation) and move on from it [paragraph 2]

4. a disadvantage [paragraph 4]

5. the extent to which an idea, or a product, gains popularity or acceptance [paragraph 5]








Answer Key

1. to sport

2. lucrative

3. to draw a line under something

4. downside

5. traction


© Cambridge Legal English Academy 2021



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