Serie A giants AC Milan will take a €4 million ($ 4.32 mn) hit in renewal of their shirt sponsorship deal with the Emirates Airlines.
AC Milan and the Emirates Airline have renewed their shirt sponsorship deal until the end of the 2022-23 season. The bleak market scenario and tumbling airlines business worldwide due to the COVID-19 pandemic has compelled the Serie A football club to accept a compromised value.
In the renegotiated considerations, women’s training and sleeve sponsorship has been excluded from the partnership that has been running since the 2010-11 season.0
AC Milan will now earn arround €10 million ($10.8 million) per season along with other bonuses. The exiting contract was €14 million (US$15.2 million) a year, plus bonuses.
Emirates will continue to be the principal partner of AC Milan and their official airline in the new three-year contract, which guarantees prime branding on the front of shirts for the senior men’s side, youth teams and the Rossoneri academy.
The previous deal also covered AC Milan’s women’s team and training kit, but the club will now be selling that, and sleeve sponsorship inventory, separately.
Casper Stylsvig, AC Milan’s chief revenue officer, said: “This renewal is a testament to the value both parties have brought to the table throughout this long term and collaborative partnership. The partnership of these two brands, with such strong international visibility, is an extremely powerful one.
“Coming out of a global pandemic, our new deal with Emirates has also allowed the club to redefine its partnership strategy, providing an increased sponsorship inventory and therefore greater potential for further commercial partners moving forwards.”
At the end of the three-year term, the total duration of the partnership will have reached 17 years, with Emirates taking over as shirt sponsor ahead of the 2010/11 season.