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Thread: Project of a huge risk

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    Project of a huge risk

    In 2011 our team sold Eto'o, decision that confused most of Inter fans especially as he was our only shining star in the team. But that time, we could compensate the loss as we recieved pretty much cash for him. We knew that crisis has come. That was the moment where our project started.

    This thread was started to reveal the truth about what we do right now and show why our last transfer market movements aren't a proof of incompetence of our management but rather mature decisions considering where are we going.

    The times of huge transfers for Inter are gone, Financial fair play is being implemented, Moratti's company noted big losses and it was obvious that we will not see any more spectacular money spendings. So what did our management thought that time? It's unquestionable that I can't possibly know what was in their heads, but looking at what we are doing now we can pretty much find some relations in their actions that lead to my conclusion.


    Let me start with some preview of our financial situations. Few days ago, Studio Deliotte published their analisys on how much money do we really earn. Considering influences from TV, stadium tickets, sportswear, CL/EL influences and everything else last year, we had an income of around 185,9 mill Euro. This is the only money we can spend on absolutely EVERYTHING that is related to our club, that means -

    -players salary (2012 it was around of 100 mill)
    -keeping the stadium
    -keeping our all teams(even youth divisions), their trips, games etc.
    -keeping up the company, IT, HR, Financial and other normal company workers
    -paying the debt (according to El Confidential in march of 2012, we still had a debt of 100 mill).

    This should give you a little bit of insight of spendings.

    After counting all those costs, we ended up with around of 16 mill profit, the money which we can spend on investments and transfers. In opposition, Real Madrid earned 512,6 mill, so even if their costs are twice as high as ours it still leaves them way more money for investments. Just for your information, Milan had an income of 256,9 mill, ManCity 396 mill and Barcelona 483 mill.


    So here we are, we got 16 mill to spend, lots of demanding fans, huge debt and an aging unsatisfied team. What do we do?

    Luckily at the same time of our crisis, raised our youth team giving us hope that they could keep this team up. This was an opportunity for us, opportunity that also brings alot of risk with it, because we just can't in one moment make our youngsters be responsible for our results every week. At that time, our primavera were of average age of around 18-19 years. Do you remember yourself that age? If you were lucky enough, most of you propably were having fun time at your university drinking booze, having fun with girls, smoking joints and the last think you had in your mind was YOUR FUTURE. That's why playing them every week is not a solution. And like I stated, most of you; most because I bet that some of you were already working and had to carry on more responsible life. That's why some of the youngsters like Balotelli, Destro etc. managed to step up earlier.

    All those boys have yet to mature up, realize that their life will be kept around the football, see what responsibilities it brings and many many MANY other factors that we can't possibly know of as we have never been in their situation.

    If our youth is to succeed in proffesional football, they have to become 1st team players around age of ~22-23. That gives them around of 1-2 more years. The worst thing about this situation is [B]the risk of the project raises with every day[B]. The longer it takes them to perform on proffesional level the more unsure we are if they have what it takes to be our starters. And because of this uncertainity we cannot act properly on transfer market. In our history we wasted way too many youngsters and we cannot let it happen again because if we do, whole Inter will fall apart. That's why we promoted Andrea to be our coach to let him develope himself with the team, with this movement we hoped to raise the chances of the project to succeed but also we raised the risk of it. But what's important, it doesn't mean that we don't have to act on the transfer market.

    The first thing I have to remind you is that there is nothing like Year Zero. We cannot possibly tell our fans, our investors, shareholders nor players that "hey guys, could you please not look at what we do for the next 2-3 years?".

    We might allow the possibility of not winning any trophy, but we cannot afford not fighting for all the trophies, because thats our determinant of project progress. This is the system that allows us to measure our efforts and calculate the risk and need of improvements. Thats our most influencial part on our transfer movements.


    So what can we possibly do now with 16 mill to spend and fear of another huge youngsters waste possibility?
    Let's be honest, with 16 mill we can't purchase any significant player that would be our asset for next 5-6 years.
    Our project is to develope youngsters to be our 1st team players, not to start winning right away. Luckily, those two goals are related to each other. Because in order to implement the youth, we need to give them place for mistakes, because let's be honest here - they will screw us more than once.


    How do we do that? We need experienced players that can make up for their mistakes in order to keep their head up and allow them to keep developing, this is the nature of upbringing the youth, its what your parents did to you and this is what you will do to your kids in future, just not on the football pitch.


    So having in mind all i just said - what player can we possibly buy?

    You never buy a players for their name, you buy them for the characteristics that match your team need. And our needs are far beyond the need of the game. We need to find a players that will suit our project. Here is the sum up of what players we were/are/will be looking or:

    A player with such characteristics:
    - experience
    - ready to perform RIGHT NOW
    - eager for short contracts
    - with huge will to perform
    - cheap
    - without big wage demands
    - willing to sit on the bench for unexperienced players
    - mature, not troublemaker

    And what does it leave us with? Players with such characteristics are either promising talents of age 21-23 or older players with age of 30-35 years. Palacio, Rocchi, Mundingayi or Gargano are perfect examples of what we are looking for. The matter of their skills if Rocchi or Gargano etc. is capable of performing or us is part of another subject, but let me remind you that months ago you all were cursing on Palacio telling that he will score at best 5 goals a season.

    Those players have 1 thing in common, we don't need to worry about their adaptation. We can't afford worrying about their adaptation because we already have huge trouble with adapting youth. Players with their age, experience will easily settle in our team and will perform right away and can guarantee us atleast mediocre results that will keep some of the criticism away and will allow youth to be focused on their developement.

    Those players have been living in shadows whole of their career, they rarely had an opportunity to play on the international level with biggest teams. They are 120% motivated to perform in their last years of career to show the world who they are, to be written in history and most importantly they won't make any trouble when we will be replacing them with young players and thats why we are looking for this kind of players.

    Having a collective of young players and experienced ones, we get plenty of space for improvement. We watch them, we see what we need, what we lack and we can make some small purchases on the market to give youngsters more time and space or improvement and luckily hope for some opportunities like Guarin to appear.




    These are the facts that show how much we trust in our youth and how our hopes are set high on them. In my opinion it's way WAY too much because we might end up in few years realizing that our youngsters got implemented well, but they are nothing more than a good players worth of playing for teams like Udinese, Fiorentina, Tottenham or Everton.
    But most importantly our project and actions are a result of many factors which i brought in my thread. I didn't bring there one of the most important factors tho, one of the reasons of being where we are now is countless spendings of big money, because running a team on huge money brings a risk that we will eventually run out of cash.
    Last edited by nutcracker; 26 Jan 13 at 13:08.


  2. #2
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    Just to say

    There are a couple of things wrong here

    1 - Real Madrid spend an awful lot more money than that. They do NOT have 300 mil a year for transfers (indeed to sign the players they have to secure them with bank loans for Kaka & Ronaldo)

    2 - Milan's books do not include the sale of Ibrahimovic (Which will only represent a +12m affect on the books) or Thiago Silva. They will be in the next financial year's report

    http://swissramble.blogspot.co.uk/20...urce=BP_recent


    Real Madrid, on a revenue of 514m, spent 380m - before adding in player amoritization (92.7m) and other bits.

    Their profit for 2012 is 24.2m

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    Yes, but why are you talking about swissresamble analisys when im talking about Studio Deloitte? I do not doubt that in yours they didnt include silva and zlatan, but in mine they did.

    When it comes to Madrid, bringing their subject was just a part of showing the differences with our income. Amortization is a different subject. The lones are done not because they don't have that money, it's because you just don't spend that much of cash in 1 moment and also, because their income isn't materialized in 1 moment, but in the time.

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    No, Deloitte was for the last financial year, which concludes ~May 2012. It also doesnt include player transfers, but just commercial + TV + matchday.

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    can you prove it? Otherway it's meaningless. I can't give a source to english language website tho neither as I only read summary of their analisis on polish Inter fanpage and they say that sale of Thiago and Zlatan is included there.

    But this doesn't matter anything for my thread tho, this doesn't increase our income any way and the thread is more about about our management choices.

  6. #6
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    Sure, it doesnt matter on other aspects, I agree, but the point is intact.

    Just saying

    The Deloitte reports represent the footballing year, e.g. 30/May/XX is the date up until when they report. Infact it isn't even just them, but rather, how all football clubs operate. Look at us, for example. It makes sense, too, because it means you neatly wrap up each footballing year into the financial report, and you dont get ridiculous / arbitrary overlaps.

    Ibra + Silva moved on the 28th of August 2010 - after the new footballing season had started.


    There's two reasons why it isnt included in Deloitte

    1 - Player sales are reported as either a write down, or a net profit, on the player's unamoritized value. This comes in as a kicker after EBITDA.
    2 - Deloitte only report Commercial + Matchday + Broadcasting. Those are the 3 stable merits of a club, because indeed for example in the case of Milan, you can grossly inflate your position over a year, and Deloitte are more concerned with the trend of football, so they look at the stable side.

    You can see, for example, the Swiss Ramble numbers will agree with the Deloitte numbers (on the front page right now they have Borussia Dortmund) - and they are on the turnover, less transfer fees recieved/paid.


    As you say, its no big deal for the article, but one should always aim to be technically correct

  7. Thanks (1): nutcracker

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    Well, I trust you on your word since you didn't give a link. Fixed it.

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    well
    here is the Swiss Ramble report for Dortmund


    Here is Deloitte on Dortmund:

    http://www.deloitte.com/view/en_GB/u...WT.mc_id=sbg11

    Or specifically:



    You'll see there is no difference between the Swiss Ramble numbers for the last two years and Deloittes - and you can see later on how Swiss Ramble include transfer fees (etc), which would take Dortmund up to 215.2 m revenue rather than 189.1

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    Yes, but I mentioned there Milan, not Borussia

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    yeah, but my point is that you can use that as a comparison

    swiss ramble list transfer fees as a tertiary income, and you can see their numbers agree with deloittes when only considering matchday, broadcast, and commercial

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    Yes, I get that, thats thats why I fixed it. But a thank was deserved for the topic anyways I believe

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    I never thank


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