Inter Milan Just Got 4.3 Million Euro From Nike Last Season
Serie A club Inter Milan recently released their financial figures for the 2017-18 financial year, which started on July 1 2018 and ended on June 30 2018. The club announced a Total Adjusted Revenue of 238 million Euro ( an increase of €17.9m over the previous season), but it are the details about how much (or less) Nike paid them that surprised many.
The outlet state that Inter are expected to announce a loss of 18 million euros, but its an improvement of about 24 million euros from last year in 2017 and it is felt that the club have met their financial requirements.
With the loss of 18 million euros, Inter have also avoided any Financial Fairplay sanctions as the expenses include the cost of youth expansion and infrastructure.
Consolidated revenues have increased by about 6 percent as compared to last year and the figures should cross 280 million euros this year. Apart from that, the board have fixed a shareholders' meeting for the 26th of October and that meeting will decide the nerazzurri's new president as well.
Inter Milan's Nike Kit Deal Heavily Dependent on Club's Successes
52% of Inter Milan's earnings come from sponsorship, e.g. from the main sponsor Pirelli, the training sponsor Suning and Nike as kit maker. Howeever, while Inter got €16.3 m Euro from Pirelli and €23.6m from Suning, Nike just paid them €4.3m.
€4.3m is much less than the sum it was rumored Internazionale would get from Nike. In fact, it was reported that Inter would get roughly €20M / year from their 10-year agreement with Nike that they signed in 2013 and that is valid until 2024.
Inter Milan got so less money because in addition to a fixed amount, Nike's payment to Internazionale is determined, aside from the season's result, by the field performance of the previous five seasons. If the Nerazzurri are champions and / or if they qualify for the UEFA competitions, the money goes up.
Inter Milan's 2017-2018 Financial Year Presentation states that the "Qualification to UCL 2018/2019 increases payments under many of [Inter's] existing contracts, including the contracts with Nike and Pirelli".
- for example, in the 2014-15 season, Internazionale was still under the "influence" of the 2009-10 triple (Serie A, Coppa Italia, Champions League and therefore received €13.4 million;
- in 2017-18, in the midst of a drought of titles and with only two qualifiers to the Europa League (2013-14 and 2015-16) in the previous five seasons, Internazionale saw the transfer of Nike fall to the already mentioned € 4.3 million (500 thousand as bonus for the qualification to Champions)
- for 2018-19, Internazionale plans to get €10.0 million from Nike, as it will have a place in the Champions League (2017-18) and two in the Europa League (2013-14 and 2015-16) in the handicap of the previous five seasons.
What Inter Milan got from Nike in the 2017-2018 campaign is not comparable to the sums clubs like FC Barcelona or Juventus get from their kit maker. In fact, Barcelona makes at least 155m Euro (£140m) a season after they renewed their contract with Nike two years ago.
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