The Milan-based Italian footballing giant Internazionale is facing a rocky start to its relationship with crypto – amid reports that DigitalBits, a company that agreed to a USD 87m sponsorship deal with Inter this year – has defaulted on a sponsorship payment.
Inter made headlines in the footballing and crypto world in January when reporters revealed that the company was set to strike a three-year deal with DigitalBits. The terms of the deal will see the DigitalBits logo displayed on the front of the first team jersey from the 2022-2023 season. The deal is due to expire in 2025. Inter has an existing relationship with DigitialBits – the company paid for sleeve sponsorship rights during the 2021-2022 season.
The crypto company has also become Inter’ s “official crypto partner.” But, Italy’s leading footballing paper Gazzetta dello Sport reported that DigitalBits has not “honored” a “tranche” of payments to Inter– a truth that has actually led the relationship in between the club and its primary sponsor to “become complicated.”
Both celebrations had actually rejected the presence of any financial-related problems numerous weeks back after reports about a non-payment very first started to flow.
But the scenario appears to have actually altered for the even worse ever since. Inter is “not standing still,” the paper reported. And it has actually reacted to what now seems a clear non-payment by “doing what it can do.”
The club has actually eliminated most DigitalBits branding from its web-based platforms. While the company’s logo design can still be seen in images of the club’s t-shirts, no other reference of the crypto business is now noticeable on Inter- associated websites. The business’s name has actually likewise been eliminated from a list of main partners on the club’s site.
A friendly match held over the weekend saw the sponsor’s name got rid of from scoreboards in the arena, and Gazetta reported that it was “likely that it will also be the case” when the group plays its next pre-season match on August 6.
Both the crypto business and the club appear eager to stay tight-lipped on the matter. The paper declared that there was “no clarity” on the quantity of cash owed in “the overdue tranche”– although whatever seemed in order when Inter released its latest balance sheet on June 30. This would appear to recommend that DigitalBits had actually honored its payment responsibilities up till this point.
The paper included that DigitalBits might have suffered monetary losses due to the truth that its XDB token has actually had a hard time throughout the severe crypto winter season. In March, the coin was trading for practically USD 0.646, while its all-time high stands at 0.85 as tape-recorded in November 2021, per CoinGecko information. At 13:37 UTC on August 1, nevertheless, the token is trading at USD 0.027, down 6.4% in a day, 31% in a week, 29% in a month, 76% in a year, and 97% from its all-time high.
Further repercussions are on the way, Gazzetta added: the club had been set to unveil its away jersey before August 10, but “will in all probability” postpone this to September – as it has no desire to give more “visibility” to DigitalBits before the latter honors its contract.
However, Inter’ s alternatives are rather restricted: The club has actually currently offered thousands of DigitalBits-branded reproduction t-shirts ahead of the Serie A season opener away at Lecce on August 13.
The outlet composed that while a “change of sponsor” at this phase would be “tremendously complicated,” in “the future, nothing can be excluded.”
DigitalBits still stands to get a massive quantity of direct exposure through the sponsorship deal: in addition to using DigitalBits-branded t-shirts in the Serie A, Inter is likewise set to complete in the Champions League, Europe’s premium cup competitors. They are likewise due to safeguard the Coppa Italia, which they won in May– beating seasonal competitors Juventus in the last.
One reporter near to the club firmly insisted that Inter would not be excluded of pocket, nevertheless.
An Inter fansite priced estimate the reporter Fabrizio Biasin as mentioning that the club’s agreement with DigitalBits was “armor-clad,” mentioning:
“We are facing a delay, but the money will come.”
Compiled by Coinbold.