Non-payment by the main sponsor digital bit They caused more than harm to Inter. And not only economic damage, but also image damage.
as it relates Football and financeToday is the negative placement news of the bond on CreditWatch by Standard & Poor’s World Rankings. “We expect Inter Media and Communication SpA to have significantly lower cash flows for sponsorship in the absence of a suitable alternative, which could materially impair its ability to service debt. – Reads the document that was viewed by CF -. CreditWatch negative suggests that we may downgrade the issue rating if we see that the club, despite a strong and well-known brand, is unable to find suitable sponsorship deals on similar terms to replace DigitalBits. “. As he explains CFCurrently, Inter’s bond rating is “B”, i.e. the level defined as “extremely speculative” or “junk bond”.
“DigitalBits missed payments of €1.6m in bonuses for the 2021/2022 Serie A season and €16m for the current 2022/23 season, which represent the first of two installments of the €24m base contract due in July and October with no proper sponsorship deal to replace DigitalBits, this lost cash flow can lead to More than 50% reduction in sponsorship revenue from 2024 compared to our previous baseline assumptions. The contract was signed with Zytara Labs in September 2021 to include the DigitalBits brand as a shirt and sleeve sponsor. This is about 80 million euros in basic payments (excluding bonuses) over the next three years – document supplement – As MediaCo finds a new sponsorship partner, we feel it The club may face a tougher market given the weaker macroeconomic environment. Despite the recovery in live sports without the stadium restrictions associated with the pandemic, we believe the current weak economic conditions may thwart the club’s pursuit of a DigitalBits replacement on similar terms.”
Thus, the new partner can – according to Standard & Poor’s – have shorter terms and lower contract values than the existing partners. Given the World Cup pause, the risk of the search being extended until the first quarter of 2023. In any case, MediaCo can benefit from a strong and well-known brand like that of FC Internazionale: an important detail that can mitigate the risks involved.
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