Report: Inter Milan considering legal action from DigitalBits over missed sponsorship payments

  • Inter could remove DigitalBits branding from shirt front if payments don’t arrive
  • The company took over from Socios as the club’s main partner this season

Inter Milan could take legal action against their main sponsor DigitalBits after the blockchain network missed a series of payments to Italian football giants, according to Corriere della Sera.

Inter originally announced an €85 million ($86.6 million) multi-year partnership with Zytara Labs in September 2021 for DigitalBits to become the club’s round sponsor, before upgrading it to its sponsor on the front of the jersey to replace the blockchain company Socios.

But with DigitalBits apparently not having paid a deposit on their long-term deal with the Serie A side, Inter are considering removing the company’s brand from their shirts for the remainder of their pre-season fixtures. . The DigitalBits logo appeared on Inter shirts for their last two friendlies on the 30the july and 6e August.

According to reports, Inter are also ready to remove the DigitalBits brand from the shirts of their women’s and youth teams, with the senior men’s team expected to follow if the company refuses to pay.

While both parties are reportedly working to resolve the issue, a legal dispute has not been ruled out given the value of the agreement. A change of sponsor would be a last resort but is not out of order either.

SportsPro says…

DigitalBits joins a growing list of companies feeling the effects of volatility in the crypto market which, after peaking at US$3 trillion last November, has fallen to around US$1 trillion.

While the company may still find money for Inter, the situation inspires little confidence and comes after a drop in spending by crypto brands following a bumper year of sports partnerships in 2021.

Questions about the long-term viability of crypto as a business sponsor will remain. The potential loss of revenue will also make Inter sweat, given their financial situation. The club’s last two public accounts covering the financial years 2020/21 and 2019/20 show combined losses of 348 million euros ($355 million).

In response, Inter launched a 415 million euro ($423 million) bond issue in January to help pay off its debts, after taking out a loan worth 275 million euros ($280 million). dollars) from Oaktree Capital Management in May 2021.

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