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Thread: The Cost of Saving

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    The Rising Cost of Saving

    The large scale financial changes at Inter are impossible to ignore. The question is, are they working?


    It cannot be disputed that the sale of Zlatan Ibrahimovic was a good one for Inter. Losses were significantly reduced that year because of the sale, to the tune of about 30-40% saved on the previous year, with the main driver the transfer fee recieved for Ibrahimovic.

    However, do such cost-cutting techniques continue to work? Inter have posted, for the last three seasons, approximately the same losses year-on-year (to the magnitude of 10-15% at least), with only slight decreases. However, this year is where it gets bad. With missing out on the Champions League - and yet again large expenditure in the summer, only partially offset by wage savings - the losses for the 12-13 season are currently projected (before any January spending!) to be at least on a par with last year, and realistically will probably be a 10-15 million euro increase.

    The fundamental issue is... The Champions League revenue. Mere participation (qualifying for the knock outs) can net a club easily 40 million euros revenue, before increased sponsorship money (etc) - most sponsor contracts will have performance related revenues - compared to the Europa League of only - if one wins it - 10 million euros.

    This 30 million euro difference per season is not just substantial, but enormous. How do you quantify it? In terms of amoritization, it is the equivalent of having 4 16 million euro players on our books on 4 year contracts (16million) + their wages (leaving 24 million by 4 players = 3 million EACH after tax). The quality injection there would be immediately obvious - for the finances we band about, that could easily cover Ogbonna, Quintero, Ferreyra, and Paulinho. And they certainly wouldnt expect 6 million a season wages.

    I think its plain to see now that we need to stop this patchwork shit we've been doing for the last 2 years, we need to pull out some serious money, and invest. We cant afford not to, if we want to comply financially...

    Another year of Europa League football could be the doom of this club, with players starting to ask themselves if this is the norm, rather than the exception, at Inter. With salaries continually reduced, player spendings being reduced, and ambitions being scaled back, where is the attraction for someone to come to Inter? We're still running on reputation, but that only takes you so far. It is vital that we invest in the squad, and that we do it now.


    Of course, whether what we have invested previously was well invested or not is a different story...
    Last edited by .h.; 08 Jan 13 at 11:19.


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    Yea but paying 1.5 mill extra over the limit for a regista we desperately need is out of the question. thats too much money to risk. the 25 mill MINIMUM, which can even be upwards of 50 mill depending on how we play, thats optional. we're not gonna risk 1.5 mill more in wages for a player to most likely get a return of 25-50 mill.

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    in hindsight we should have cashed in on Wes last summer, the fact that we didn't shouldn't have been disastrous and many on here (including me) didn't want him sold.

    what is totally ludicrous though is isolating him from the team so that he cant play while we still pay him. this is completely our managements fault imo and it is also lowering his value, most estimates seem to have him at around 50% of what he was worth 5 months ago which pretty much speaks for itself

    also renewing Chivu at 2.5mil (5 for us) was a step completely in the wrong direction

    this season is looking more and more like last, we'll be lucky to make CL and next season will probably be the same/worse as this one and the previous

    the youth project really doesn't seem to exist.
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    Quote Originally Posted by ninuk View Post
    Yea but paying 1.5 mill extra over the limit for a regista we desperately need is out of the question. thats too much money to risk. the 25 mill MINIMUM, which can even be upwards of 50 mill depending on how we play, thats optional. we're not gonna risk 1.5 mill more in wages for a player to most likely get a return of 25-50 mill.
    What are you referring to? Sahin's wage? CL money?

    First, Sahin's predicted salary is around 4m€ NET PLUS bonuses. That means it's around 8m€ per year club has to pay. For four years time, that is 32m€. Plus bonuses. Plus transfer fee. So tossing some random 1,5m€ figure is totally non relevant in the discussion about Sahin to Inter.

    Second, this team is not going to make 40-50m€ in CL for a several years. Yes, it can be 20m€ or 30m€, but the growing pains will be big and it takes many years before we can make a pinch to the finals/semi-finals (of course any team CAN make it, it's just statistically very improbable).

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    So, invest in players and one of the reward is CL money.

    How about if we have not enough money to invest? So, the idea is getting CL money to buy quality players so we can keep getting CL money. Patchwork is done to help getting this objective. Purchases were still made when players are being considered as a bargain for his class, i.e guarin and pereira, who had shown high performance but decline a season prior joining us.

    And don't bring Lucas as a hard fact. We know management talked about signing him, we know branca made trips to Brazil for inquiries. But, is there any proof that it was not a decoy? Branca expenses were peanut if something valuable was on the line. I mean, Inter is/was a big club, depends on how you see it. We need to keep the prestige so at least fans felt content as they are one of revenue sources.
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    Quote Originally Posted by Barbas View Post
    So, invest in players and one of the reward is CL money.

    How about if we have not enough money to invest? So, the idea is getting CL money to buy quality players so we can keep getting CL money.
    A strategy that is currently working well at Chester City and Modena.

    Patchwork is done to help getting this objective. Purchases were still made when players are being considered as a bargain for his class, i.e guarin and pereira, who had shown high performance but decline a season prior joining us.
    And yet our league position remains unchanged.

    And don't bring Lucas as a hard fact. We know management talked about signing him, we know branca made trips to Brazil for inquiries. But, is there any proof that it was not a decoy? Branca expenses were peanut if something valuable was on the line. I mean, Inter is/was a big club, depends on how you see it. We need to keep the prestige so at least fans felt content as they are one of revenue sources.
    The only mention of Lucas on this page was by you.........................................

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    Quote Originally Posted by CafeCordoba View Post
    What are you referring to? Sahin's wage? CL money?

    First, Sahin's predicted salary is around 4m€ NET PLUS bonuses. That means it's around 8m€ per year club has to pay. For four years time, that is 32m€. Plus bonuses. Plus transfer fee. So tossing some random 1,5m€ figure is totally non relevant in the discussion about Sahin to Inter.

    Second, this team is not going to make 40-50m€ in CL for a several years. Yes, it can be 20m€ or 30m€, but the growing pains will be big and it takes many years before we can make a pinch to the finals/semi-finals (of course any team CAN make it, it's just statistically very improbable).
    ok how is that much different than bringing in a player with 2.5 mill wages. Over 4 years, over 100 years. bring him here on loan, and hell show you what he can do. We're crashing out of the CL, due to one factor and one factor only, lack of a regista.

    this club is too focused on how much one fucking player makes, and doesnt notice half our squad is useless. Athletico madrid is wasting 7m on Falcao, and its completely fucking worth it. you can overpay for a central striker and regista, because theyre the most 2 important positions.

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    Quote Originally Posted by CafeCordoba View Post
    What are you referring to? Sahin's wage? CL money?

    First, Sahin's predicted salary is around 4m€ NET PLUS bonuses. That means it's around 8m€ per year club has to pay. For four years time, that is 32m€. Plus bonuses. Plus transfer fee. So tossing some random 1,5m€ figure is totally non relevant in the discussion about Sahin to Inter.

    Second, this team is not going to make 40-50m€ in CL for a several years. Yes, it can be 20m€ or 30m€, but the growing pains will be big and it takes many years before we can make a pinch to the finals/semi-finals (of course any team CAN make it, it's just statistically very improbable).
    40 mil is the lower side of the estimate, actually. IIRC the average money for a team that just qualifies into the CL and crashes out at the group stage is something like 20m. We benefit from quite large TV revenue and audiences, so we're in the top tier with respect to TV revenue, which boosts us up a bit more already. Ticket sales give us another million or so a game, and increased revenue from sponsors will give us another boost.

    35-40 million is not an unreasonable estimate for just going to the group stages. Hitting the latter stages can go up to like 100 million increased with the additional revenues

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    Quote Originally Posted by browha View Post
    A strategy that is currently working well at Chester City and Modena.



    And yet our league position remains unchanged.



    The only mention of Lucas on this page was by you.........................................
    Yes, we are not at a good position in the league. But, season is not over yet. We have shown this season that we can do better.

    What I was saying in my post was that what if we do not have money to invest? What if Moratti and Co do not have/want to inject more money to Inter? Sell the club? I understand if they do not want to. No body here knows what is exactly happen in board meeting.

    I wrote about Lucas just to anticipate future argument saying ".. but but we inquired Lucas, we sent Branca there to fuck the trannies, we must had money to back it up".
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    Actually, yes, I've been in favour of Moratti selling the club for 2.5 seasons now

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    I hate to call you out here but browha don't you think that Strama more than any of us is well aware of how badly the club needs the UCL, hence the reason why he just can't afford to give the Primavera players as much as the project we claim to want to implement dictates?

    We simply have to always play the best team available at all times, regardless of form or not and that means fielding Gargano and all the other player who have under-performed in the past few matches. At the same time though, you can not deny that never before in the last 2 decades have this many youngsters been this close to the first team as now. They may not be getting first team match day experience, but they are training every single day with them instead of with boys. A decent portion of our bench as well as reserves comprise of youngsters.

    I must admit however, 2 years ago, I was immature and hated our management for what they were doing. With the constant sales, etc. To me the club just didn't look as if it had any direction. But looking back, the management have done a pretty good job so far in fixing the books. The cost of saving affords us a future, something the club would not have had, if we didn't change the way we operated. Sure we can no longer enjoy the yearly silverware we had grown so accustomed to, we can no longer be amongst the European giants and gloat with our peers on a weekly basis about Inter, but I believe that this is temporary. The cost of saving now is being average now, so that we can be hopeful later.
    Best match thread opener ever.

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    Nyall, no one questions the NEED of saving. What we are questioning is their METHODS in doing so.

    What we're doing right now is kinda like, "Hey I need to fix this US fiscal cliff, let's do it by raising taxes only on the poor, let defense spending remain but close down our school, fire our cops & firemen and shit."

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    Quote Originally Posted by Handoyo View Post
    Nyall, no one questions the NEED of saving. What we are questioning is their METHODS in doing so.

    What we're doing right now is kinda like, "Hey I need to fix this US fiscal cliff, let's do it by raising taxes only on the poor, let defense spending remain but close down our school, fire our cops & firemen and shit."
    Nah trust me Han it's more like.. the government eliminating the tax exemptions on everyone, cutting spending across the board and reducing government in all sectors but to levels that ensure that a possible crisis is averted.

    It's borderline extreme and necessary with how soon the FFP is approaching. The only way for things to have been done differently now, is for us to have acted differently in the past and not have handed out so many large contracts. But what's done is done.
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    Letting defense spending remain = Keeping Chivu & Stankovic <--- What a perfect analogy

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    Quote Originally Posted by Nyall View Post
    Nah trust me Han it's more like.. the government eliminating the tax exemptions on everyone, cutting spending across the board and reducing government in all sectors but to levels that ensure that a possible crisis is averted.
    Except for the sector called "Other".
    Awaiting the start of our youth project.

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    well, nyall, my point there was that if your best XI week in week out keeps failing, you should mix shit up a little. The team, outside of our 7 league match winning streak, is in relegation form.

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    Quote Originally Posted by browha View Post
    well, nyall, my point there was that if your best XI week in week out keeps failing, you should mix shit up a little. The team, outside of our 7 league match winning streak, is in relegation form.
    And even with our so called relegation form, we're only 2 points out of our primary objective.. and even if we're bad of late, throwing in youngsters won't necessarily benefit us or them.
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    My point is, if you take away the 7 league matches, we're in relegation form. There's no indication at the moment that we will pull off a similar 7 league winning streak again, and if we dont, and stay true to form so far, we're gonna be competing for mid-table GUARANTEED.

    I would feel a lot more confident about Europe - let alone CL - if we were putting together 3, 4, 5 game wins here and there. but instead, we're struggling. Our 5 game-moving average points is only like 1.4 or something. Its utterly utterly dire.

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    You are unduly restricted in numbers and no matter what you may expect brow this argument of yours seems kinda irrelevant for now. You keep analyzing the situation stictly on our transient no form waiting an impassable second round. This way aren't we tighten things?

    Where the problem mainly manifests itself is clearly known technically and i guess it's wiser to evaluate our chances after we patiently wait to see the type and quality of our January reinforcements. Personally i can't spot any tragicomic phase we are, simply cause we've produced so bad football as philosophy and game plan we must consider ourselves lucky to fly at the top 4 atm.
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