Inter Milan's Key Revenue Growth: A Sixfold Increase in Four Years, But Lessons from AC Milan Remain

Inter Milan has experienced significant growth in their merchandise sales over recent years, a remarkable achievement considering their late start and initially weak retail foundation. According to data released by Italian media for the 2022-23 Serie A season, the "Big Three" of the north—Juventus, AC Milan, and Inter Milan—continue to dominate in retail sales. Juventus leads with €28 million, AC Milan follows with €20 million, and Inter Milan is third with €13 million. Despite their late start, Inter's €13 million represents a substantial achievement and evidence of their considerable progress.

The Early Days: A Partnership with Nike

Inter Milan has had a long-standing partnership with Nike. However, during the Erick Thohir era, Inter did not focus much on retail. Nike primarily handled sales, with Inter merely receiving a share of the revenue. This approach led to two significant problems:

1. Limited Promotion: Inter's popularity did not match that of other major clubs under Nike's umbrella. As a result, Nike allocated fewer resources to promoting Inter's merchandise. Fans often reported visiting stores only to find a limited selection of Inter's jerseys, if any at all, on display.

   

2. Low Revenue Share: Since Nike managed the sales, Inter's share of the profits was minimal. Consequently, during these years, Inter's income from merchandise sales was disappointingly low.

A Turning Point: 2019 and Beyond

In November 2019, under the leadership of Steven Zhang, Inter Milan took a bold step by acquiring the retail rights from Nike. This move allowed Inter to manage their merchandise sales independently. Despite the initial challenges—limited stores, restricted sales channels, and lack of promotional experience—Inter began to build from the ground up.

During the 2020-21 season, Inter's retail revenue was €4 million, which increased to €6 million in the 2021-22 season. By the 2022-23 season, their retail revenue had skyrocketed to €13 million. This significant growth over three years indicates that Inter Milan has found their stride in the retail market. Specifically, last season's sales totaled €13.16 million with costs of €3.576 million, resulting in a net profit of approximately €10 million.

Continued Investment and Future Prospects

Inter Milan has continued to invest heavily in their retail sector. Recently, CFO Alessandro Antonello and several team members have been busy opening new stores to meet the rising demand. With increased sales, existing stores are no longer sufficient. Furthermore, if Inter earns the right to add a second star to their jerseys, a surge in new jersey purchases is anticipated. Many fans, including those who currently own one-star jerseys, are eagerly awaiting the chance to buy two-star versions.

Given this trend, Inter’s retail sales are expected to continue their rapid growth. Conservative estimates suggest that this season, Inter could achieve retail revenue of €24 million, a sixfold increase over four years. This explosive growth demonstrates the club's adaptability and determination.

Identifying Areas for Improvement

Despite the impressive growth, Inter Milan has identified areas needing improvement. One significant shortfall is the lack of a star player whose popularity can drive merchandise sales. In other clubs, fans often purchase jerseys with the names of superstar players. For example, Juventus saw a spike in jersey sales with Cristiano Ronaldo, and currently, many Real Madrid fans are buying Jude Bellingham jerseys.

Inter lacks such a standout player. While players like Benjamin Pavard, Matteo Darmian, and Yann Sommer have appeal, their defensive positions make them less popular with general fans compared to forwards. Similarly, while Marcus Thuram and Lautaro Martinez are skilled, their commercial appeal and star power are not as strong.

This issue results in a diffusion of jersey sales across several players’ names rather than a concentration on a single superstar. For example, while Nicolo Barella, Federico Dimarco, Lautaro Martinez, and Alessandro Bastoni each have some following, there is no single player driving a majority of the sales.

Learning from AC Milan

Inter Milan can learn valuable lessons from their city rivals, AC Milan, who have successfully cultivated a star player with significant commercial appeal. Christian Pulisic, who joined AC Milan and performed admirably, scoring 12 goals and providing 8 assists, has been labeled a "phenomenon" by fans. His impact on merchandise sales has been tremendous. According to Mike Moylan, founder of the world’s leading football merchandise sales platform, Pulisic’s arrival boosted AC Milan’s merchandise sales by 400%, making them the second fastest-growing team globally in this sector.

Pulisic's success in merchandise sales is not solely due to his on-field performance. His nationality, image, and playing position all contribute to his popularity. This strategic acquisition by AC Milan demonstrates the importance of having a marketable star player to drive sales.

Inter Milan’s Strategic Moves

Inter Milan has already shown awareness of this need by signing Tajon Buchanan, intending to broaden their retail appeal. However, Buchanan will require some time to integrate and make a significant impact. The hope is that in the future, Inter will also have a "phenomenon" player who can boost jersey sales significantly.

Balancing Competition and Commerce

In conclusion, Inter Milan’s remarkable growth in merchandise sales over the past four years is a testament to their strategic efforts and adaptability. The club has learned valuable lessons and continues to invest in this critical revenue stream. However, the journey is far from over. To reach their full potential, Inter Milan must continue to identify and leverage star players who can drive merchandise sales.

Football is not just a sport; it is also an industry. Recognizing and acting upon this dual nature is crucial for clubs like Inter Milan, where financial challenges often outweigh competitive ones. The lessons learned from AC Milan's success with Pulisic highlight the importance of strategic player acquisitions that go beyond performance, considering their marketability and potential to drive commercial growth.

As Inter Milan continues to build on their retail success, they must remain agile and open to new strategies that can enhance their commercial appeal. The next few years will be crucial as they aim to solidify their position in the market and capitalize on the momentum they have built. The journey of achieving a sixfold increase in four years is commendable, but the goal is to sustain and further this growth by addressing current gaps and leveraging new opportunities.