Inter Milan sponsorship revenue to fall €55m

Inter Milan sponsorship revenue to fall €55m
Italian soccer giants Inter Milan are expected to see their sponsorship revenue fall €55.2 million (US$60.6 million) to €75.3 million (US$82.9 million) for the 2019/20 season.

The Serie A giants pocketed €130.5 million (US$143.6 million) in sponsorship over the 2018/19 campaign, but a new public filling shows that number is set to plummet after several partners opted to activate termination clauses in their deals with Inter.

These included educational services provider Full Share and King Dawn Investment Limited, with the Asian-based brands reportedly contributing up to €45 million (US$50 million) a year between them.

Marketing agency Beijing Yixinshijie also opted not to renew its deal with Inter, further denting the club’s financial projections for the year ending 30th June 2020.

A statement from Inter in the filing said: ‘The return of the rights under the contracts above along with the appointment of our new chief commercial officer gives us a strong opportunity to further exploit these rights with further deals into the future.’

For the three months ended 30th September 2019, sponsorship revenues totaled €19.1 million (US$21 million), compared to €27.7 million (US$30.5 million) over the same period for 2018/19. Regional sponsorship revenues and naming rights were down from €20 million (US$22 million) to just under €9 million (US$9.9 million).

The commercial hit has been offset slightly after Inter penned new deals with brands such as Lenovo, Acronis, Hugo Boss, Rinascente, Linkem and A2A and other new contracts, generating a  positive €6.6 million (US$7.3 million) net impact.

Inter Media and Communications, the club’s commercial and media rights subsidiary, is expected to post 2019/20 revenues of €210.7 million (US$231.7 million), down from €300 million (US$330 million). The estimation has been based partly on Inter not yet securing performance bonuses over the course of the whole season, including shirt sponsorship bonuses relating to progression in the UEFA Champions League and their final position in Serie A.

In September, it was reported Inter were set to post total revenues exceeding €400 million (US$440 million) for the first time for the year up to July 2019. However, the latest filing was also details losses overall, but one that fell in line with the requirements of UEFA’s financial fair play (FFP) regulations.

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