Serie A set for losses of 250 million euros due to decline in sponsorship deals

Published on: 03 April 2020

Italian football earns 600 million euros each year from sponsorship deals, but the uncertainties of restarting the season due to the coronavirus crisis may provoke an economic loss not just for this year but for years to come.

Financial cuts will be prevalent in many areas, including sponsorship deals, television rights, ticket and shirt sales.

"If Serie A doesn't restart, it is estimated that there will be losses of up to 250 million euros this year, which will have a knock-on effect for years to come," said Marco Bellinazzo, an Italian economist.

According to experts, the economic crisis brought on by the coronavirus pandemic will provoke at least a 10 per cent decline in Italy's GDP for the first quarter of the year, which will particularly affect companies that specialise in selling club merchandise.

This year there are nine sporting manufacturers in Italy that sponsor the 20 clubs in Serie A, including Nike, Adidas and Puma.

A reduction in sales will directly affect clubs like Juventus, who acquired rights to exclusively sell their merchandise for seven million euros.

"Juventus opened an internal partnership to sell their products in which they had to pay seven million euros to Adidas," Bellinazzo said, "something that they could suffer from in the long run."

"This commercial reduction will affect all Italian clubs," Bellinazzo concluded.

Source: m.allfootballapp.com

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