Inter Milan's Key Revenue Trails Juventus, Ranking Only Fourth in Serie A: The Hidden Battle in the Derby d'Italia

In the latest Serie A round, Inter Milan overcame Atalanta, AC Milan suffered a defeat, and Juventus triumphed over Fiorentina, causing a shift in the top positions of the league. Allegri, beaming after securing three points, began his press conference by praising Inter, a routine for him. Recently, Marotta has repeatedly stated that Juventus is the main favorite, suggesting that the Milan clubs and Napoli are trailing behind, emphasizing that only Juventus is a true contender. Whether this mutual admiration between century-old rivals is sincere or strategic remains a matter of opinion. The nuanced situation has captivated fans worldwide, drawing their attention to the Derby d’Italia, even though the match is three weeks away.

However, this article focuses on more than just the championship contention between the two clubs. It delves into the financial implications and survival, particularly regarding sponsorship revenue. Recent comments from publications like Gazzetta dello Sport and Tuttosport highlight Inter Milan’s concerning sponsorship income. Inter’s shirt sponsorship revenue significantly lags behind that of Juventus and AC Milan, causing considerable worry for the Nerazzurri. Last season, Inter suffered a massive financial blow when their shirt sponsor pulled out, costing the club tens of millions of euros. Although Inter is currently pursuing legal action for compensation, the prospects of recovering a substantial amount seem bleak.

Before and after the Champions League final, Inter was actively seeking a new shirt sponsor. This season, they decided to move Paramount from the back of the shirt to the front. According to Inter's official financial report, the base sponsorship fee is €11 million, with additional bonuses. The contract includes numerous clauses about these bonuses, making it difficult for reporters to estimate the exact amount. But what does €11 million mean in the grand scheme? Compared to other top teams, it’s quite low. Not to mention teams like Real Madrid, Barcelona, and Manchester City, whose shirt sponsorships range between €70-80 million. Even within Serie A, Inter's revenue is unremarkable. Juventus’ shirt sponsorship brings in €45 million per season, and AC Milan earns €30 million. Roma, who faced a similar situation to Inter last season when their sponsor also pulled out, now has a deal with a Middle Eastern company worth €12.5 million plus easily achievable bonuses. Inter’s €11 million deal ranks fourth in Serie A, roughly one-seventh to one-eighth of the top English and Spanish clubs, and less than one-fourth of Juventus.

Despite these challenges, Inter has made significant strides in attracting sponsors over the past few years. According to official statements, Inter is currently partnered with 30 sponsors, generating an annual revenue of €71 million, an increase of about €18 million from the 2021-22 season. In the difficult financial landscape of Serie A, achieving this is commendable, and the improvement in their European performances has played a significant role. However, the relatively low shirt sponsorship remains a sore point for the Nerazzurri.

Why did Inter make this decision? Gazzetta dello Sport points out two main reasons. First, partnering with a major film industry player like Paramount brings intangible benefits beyond monetary value. Since teaming up with Paramount, Inter’s media department has significantly improved its video production quality, gaining a substantial online following. This aligns with Zhang Kangyang’s broader strategy of enhancing Inter’s digital presence and new media revenue streams, recognizing that more Italians are consuming media on their phones rather than on television. Given that Serie A clubs primarily survive on TV broadcast revenue, adapting to this shift is crucial.

Second, Inter is playing the long game. While Paramount is on the front of the shirt this season, the agreement allows for the possibility of a higher-paying sponsor taking over next year, with Paramount willing to move back to the shirt’s reverse side. This summer, Inter negotiated with several potential sponsors, including Turkish Airlines, aiming for a deal comparable to AC Milan’s €30 million per year. However, the feedback was not promising. Thus, using Paramount as an interim measure while seeking a more lucrative long-term partner is strategic. This approach is preferable to the Thohir era’s strategy of locking in low-value, long-term deals, which prevented seizing better opportunities when they arose.

Achieving the dream of a €30 million+ shirt sponsorship requires the team to perform exceptionally well. Returning to the Champions League final is challenging and uncertain, possibly prompting Inter to shift their strategic focus to the domestic league this season. Aligning team strategy with current circumstances is crucial, and Inter’s pressing need for a Serie A title is evident.

Similarly, Juventus faces a comparable urgency. Following the fake accounts scandal, doping allegations, and betting controversies, the Bianconeri have endured numerous setbacks recently. Juventus’ current shirt sponsorship deal, worth €45 million, ends this season. This lucrative sponsorship was part of Cristiano Ronaldo’s legacy, but the sponsor is unwilling to renew the contract. Juventus is actively seeking a new sponsor to replace it. Achieving a €45 million deal in the current Serie A environment is no easy task. Without European competition, securing the Serie A title is crucial for boosting their sponsorship appeal.

In summary, both Inter and Juventus face the challenge of securing new front-shirt sponsors, and winning the league title is the best way to enhance their attractiveness to potential sponsors. This season, both clubs will fight with all their might, not just for another trophy in the cabinet but because it could make the coming years a bit more financially stable.