Inter’s sponsorship deals with Chinese companies other than Suning are coming to an end as the economic situations of these companies is forcing them to withdraw from their partnerships with the club.
This according to today’s print edition of Milan-based newspaper Gazzetta dello Sport, who report that aside from the money coming in from the owners Suning, the Nerazzurri have moved onto other partnerships.
In the past five seasons, Inter have earned €346 million through partnerships with Asian companies, of which only €64 million is yet to be collected.
A total of €39 of this €64 amount is attributable to companies who are unlikely to be able to pay due to their “doubtful credit positions.”
Inmedia owe the Nerazzurri €31 million for their partnership, while Beijing Yixinshijie owe €8 million, and they have notified the club of their inability to comply with their agreements due to their financial situations, with the former having exercised an early withdrawal clause with respect to the 2024 maturity of their obligation.
Of the rest of the amounts from various companies in China, they have been collected but the sponsorship deals are set to end soon, with only the agreements with Suning still bringing money into the club.
In September 2016, a few month after the Zhang family took control at Inter, the club agreed a deal with Suning worth €16.5 million annually plus add-ons (€25 million signing fee) which dropped to a fixed amount of €16 million, and then a further reduction was agreed to last month.
In spite of the end of the other partnerships, Inter can still count on the income from their partnership with Suning which sees the company’s name attached to their training centre, training kits, stadium backdrops, and co-branding rights in Asia.
This year Inter will collect €11.5 million from Suning and then an additional €2-3 million from two Chinese regional sponsors, LD Sports and Boe United Technology.
The economic situations of the companies involved, the restrictions imposed by the Chinese government, and the crisis at the parent company of Inter owners Suning has meant that these partnerships are no longer a viable source of revenue.
Fortunately for the club, however, they have been able to find new partnerships as the club’s brand has become more marketable in recent years thanks to participation in the Champions League and winning the Scudetto last season.
