AC Milan signs a deal with IC Markets worth 10 million a year and they will be the new sleeve sponsor. Inter are also looking for a new main sponsor after their deal with Pirelli expires in 2021.
July 13 2020 | AtoZ Markets – Italian soccer giants Inter Milan have signed their first-ever sleeve sponsorship after agreeing a €10 million ($11.3 million) deal with IC Markets, according to Tuttosport.
IC Markets AC Milan sponsorship to boost commercial revenues
The Australian-based online retail forex and CFD broker will reportedly kick off from 2020/21 and run for the duration of the season. Exploratory talks between Inter and IC Markets over future partnerships have also apparently taken place.
The reported agreement, set to be IC Markets’ first foray into sports sponsorship, continues Inter’s plans to boost commercial revenues. According to Gazzetta dello Sport, the Serie A club renewed their €16 million (US$18.1 million) a year training kit sponsorship deal with Suning for a further two years.
Another part of Inter’s commercial efforts includes seeking a new main shirt sponsor to replace long-term partner Pirelli. The tyre-brand looks set to end its deal, which sees it pay €12 million (US$13.5 million) per season. It also includes bonuses at the conclusion of the 2020/21 season. Inter owner Zhang Jindong is said to be after a new partner to fill the set to be vacated slot, and is holding out for a contract worth between €25 million (US$28.2 million) and €30 million (US$33.9 million) annually.
In comparison, league champions Juventus reworked their shirt sponsorship agreement with Jeep last October, which sees the car manufacturer pay an extra €25 million a season until the end of 2020/21. The Old Lady is now on course to earn as much as €45 million (US$50.8 million) per year from the deal.
Is the sponsorship worth it?
Sports sponsorship has long been a way for businesses to extend their global reach. In fact, there is a direct correlation between the target markets of sports organizations and clubs, and FX and CFD brokers. The ROI achieved from such partnerships appears to induce a lucrative ROI for global brokers.
In the past, we have seen clubs like FC Barcelona sponsored by Forex brokers. While it does give the broker good coverage, and exposure, we have seen that this type of deals are counter-productive. Although it is subject to discussion, the ROI as a result of sport sponsorship deals are often negative. However, smaller-scale sporting events have proven to generate better results for various brokers.
AFX group sponsored a sailing team in the past, however, the company entered a voluntary administration. IronFX sponsored Barcelona, after which the company had financial troubles. USGFX sponsored Sheffield United, however, just last week we announced USGFX bankruptcy.
Moreover, ACFX sponsored the Serbia Open tennis tournament and the company later went bankrupt. To sum this up, we will have to watch and see how the IC Markets AC Milan sponsorship progresses.