Manchester United Forced to Pivot After £20 Million Sponsorship Blow

Manchester United are reportedly on the hunt for a new sleeve sponsor after it was confirmed their current arrangement with DXC Technology will draw to a close at the end of the season. DXC’s deal was thought to be worth £20 million a year, representing a significant blow for the Red Devils.

Since replacing Kohler in 2022, DXC featured on the club’s home, away, and third kits. Apart from gaining valuable global exposure, the multi-year partnership helped DXC connect with fans on various digital platforms. However, United will now be forced to pivot once again.

The dominoes continue to fall

Sponsorship deals have been toppling for United over the past few months. In June, it was announced that their agreement with training kit sponsor Tezos, which was worth £24m a year, had ended. The branded kit had been worn by United’s first squad for the past three years, and summer signing Matheus Cunha was pictured in it during his official unveiling after joining from Wolves.

In addition, long-term sponsor Marriott International confirmed it was discontinuing its partnership with the club. As part of a radical cost-cutting programme, the world’s largest hotel company, which had served as United’s sponsors since 2019, were looking to save up to £70m a year as part of a concerted restructuring effort.

Despite that blow, United insisted they were proud of its partnership with Marriott. One of their memorable activation campaigns with Marriott gave fans the chance to stay at a specifically developed suite at the club’s home ground, Old Trafford.

Shuffling things around

Despite DXC cutting ties, United remains a well-oiled commercial machine. In their most recent set of financial results published in September, United posted record revenues of £666.5m. Helped by their five-year front-of-shirt sponsorship deal with Snapdragon, which is deemed one of the most lucrative in the Premier League, saw United make significant gains.

Although United have been carrying out their own cost-cutting measures, the club is believed to be the fourth richest in the world, according to a survey carried out by Deloitte earlier in the year. While they have been forced to shuffle things around, United’s chief executive Omar Berrada admitted the club remained an attractive commercial proposition.

He said:

“Our commercial business remains strong as we continue to deliver appealing products and experiences for our fans, and best-in-class value to our partners.

“As we start to feel the benefits of our cost-reduction programme, there is significant potential for improved financial performance, which will, in turn, support our overriding priority: success on the pitch.”

Prospects still look good

While losing a sponsor isn’t ideal, it is thought that United are taking a proactive approach to resolving things. Apparently, there is a strong list of potential suitors in the pipeline in terms of sleeve and training kit sponsorships, and talks have begun. That said, nothing is set in stone.

Manchester United though aren’t the only Premier League club targeting sponsorship deals. Tottenham have been drawing up plans for a new front-of-shirt sponsor, with principal partner AIA set to transition into a new role as training partner after the 2026/27 campaign.

Elsewhere, Chelsea upgraded the status of their partnership with Vietnamese-based tech firm FPT to make them a sleeve partner, but things have been quiet on the front-of-shirt sponsorship front. There have been discussions over a lucrative deal, but nothing has happened as of yet.