Sydney-based IC Markets, a provider of FX services and ECN trading capabilities, is reportedly suing Italian soccer giant, Inter Milan as their lucrative sponsorship deal has collapsed.
The club is being sued over its alleged refusal to honour the terms of its reported €5 million-a-year deal with IC Markets, which is also pursuing a refund for the €3.5 million it has already paid.
IC Markets says the Nerazzurri cancelled the one-year deal contract with them, which was set to run until the end of the 2020-21 season, and names the broker as Inter Milan’s first-ever sleeve sponsor. The arbitrary termination came even as Inter Milan confirmed the deal as part of the financial results of Inter Media and Communication SpA.
The official reason given by Nerazzurri club for ending the lucrative deal with IC Markets was the failure to comply with contractual obligations. For its part, IC Markets has filed a ‘wrongful termination lawsuit’ against the club and are seeking reimbursement of the money they have already given, plus interest.
The brokerage firm denied all allegations and false statements made by the contractual partner for dumping its sleeve sponsor. The preliminary hearing of this case will be held before the court of Milan on April 14, 2021.
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Our sources indicate that IC has attempted to renegotiate the terms of the sponsorship in good faith since the deal’s value fell abruptly due to COVID-19 pandemic. However, this has not been accepted by Inter Milan.
As sports across the board have cancelled their leagues and seasons, many sports’ clubs have had sponsorships suspended.
The sponsorship deal, signed earlier in June, came as the Serie A soccer team was seeking greater revenue opportunities as they bid to stay in touch with the rest of the local and continental elite. In comparison, rival club Juventus renewed its partnership with Adidas a few months ago for a minimum of €50 million per year over eight years.
This has motivated Inter Milan to play catch up which may include the club replacing long-term shirt sponsor Pirelli, which earned them €11 million per year. Pirelli’s logo has been featured on the Inter Milan’s kit since the 1995/96 season but the tyre brand’s contract expires in 2021.
The agreement marked a first foray into sports sponsorship for IC Markets, which is headquartered in Australia but also has offices in Seychelles, Cyprus and other regions.
IC Markets was slated to take advantage of advertising opportunities across the club’s various communications channels as well as engaging with both the club’s supporters and sponsors.