Inter's Financial Situation

Suning Have Already Closed Inter’s Financial Gap To Juventus

If there is a team in Italy able to compete economically with Juventus, then it is Inter. Gazzetta dello Sport explains how Suning have already reduced the economic distance with their rivals and how, in the future, this distance could be completely wiped out.

Juventus’ turnover has reached over €400 Million (€411 Million in 2017-18, net of capital gains), double that of the other major teams in the league, which remained steady in the years when Juventus grew. Only Inter have showed signs of improvement and the kickstart was given by Suning, with Inter’s turnover nearly reaching €300 Million (297 in 2017-18). Suffice to say that since Suning took control of 68.55% of the shares in June 2016, it has pumped €474 Million into the club’s funds, of which €247 Million into the capital account and €227 Million in loans, which is destined to be converted into equity, after that the 31.05% owned by Thohir will be resolved.

Juventus have not needed this sort of assistance for years now, and are completely self-sufficient. Zhang Sr. and Jnr. propose to retrace the same parable of tonight’s rivals, over a period of 3-5 years.

The starting gap between the two clubs, however, is remarkable and the good will and the openness of Suning are not enough. Without considering player sales, which for Juventus has been an essential factor (the sale of Pogba to €105 Million, for example) and that Inter will have to start to make more intense profits.

The €411 Million earned by the Bianconeri is made up by the following: €200 Million for TV rights, €126 MIllion commercial revenue, €61 Million from their stadium, €24 Million from other sources. The €297 Million earned by the Nerazzurri is made up by the following: €95 Million from TV rights, €139 Million commercial revenue, €35 Million from the Stadium and €28 Million from other sources.

The difference in TV rights is made up from the Champions League (€78 Million for Juve and €0 for Inter). Inter is even in front of the commercial area but we can not fail to consider the Suning factor which, with direct sponsorship, has secured €38 Million in 2017-18 and thanks to its network of alliances has propitiated the activation of contracts by companies for another €62 Million.

Juventus is destined to grow further, above all thanks to the help of Cristiano Ronaldo, but Inter is hoping their stadium will help close the gap even further.

Imagine if we owned our own stadium

I thought that of the money 'guaranteed' from our Chinese sponsors, very little of it had actually arrived. What's the status on that.

Should be paid by the end of December. That's written on our website at "Investors relations" page.

Universe said:

I thought that of the money 'guaranteed' from our Chinese sponsors, very little of it had actually arrived. What's the status on that.

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I don't hope the Chinese pull up a "Milan" again...

J.. said:

I don't hope the Chinese pull up a "Milan" again...

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Li was a beggar in disguise, Zhang is the owner of one of the largest companies in the world.

What happens now that we are in EL, can we include joao mario, gags and dalbert? how come man shitty and PSG or as I call it QSG aka QNB, qatar national bank are able to not get affected by ffp, should we sue uefa for unfair treatment, so many questions to the point I am sure in the coming days when I go to buy sth I will refrain because of ffp considerations,fuck you uefa.

UEFA need to learn the hard way from the Chinese.
Just like Trudeau messed up in Huawei CFO's kidnapping.

yoszee said:

UEFA need to learn the hard way from the Chinese.
Just like Trudeau messed up in Huawei CFO's kidnapping.

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Unrelated matter but Trudeau was correct in Huawei's CFO's situation.

tanorini said:

What happens now that we are in EL, can we include joao mario, gags and dalbert? how come man shitty and PSG or as I call it QSG aka QNB, qatar national bank are able to not get affected by ffp, should we sue uefa for unfair treatment, so many questions to the point I am sure in the coming days when I go to buy sth I will refrain because of ffp considerations,fuck you uefa.

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PSG and Man City had ridiculous sponsor agreements plus EPL revenues are huge (in City's case). They also got punished once with shorter squad list for CL (though unlike us they had all their star players registered).CL brings them too much now plus new (not fake like with Qatar) sponsor deals, so it's sort of a multiplier effect now. Though PSG also sold Moura-Matuidi-Krychowiac-Guedes-Pastore-Aurier and some other players so it's not like they are totally unharmed. For instance, this year they bought Mbappe and bunch of nobodies, unlike previous years.

Meanwhile us in Moratti/Thohir era had shit sponsor deals. Pirelli paid us peanuts and Nike...don't even ask about that. Consider the fact that we signed 10-year agreement with Nike in August 2013 with 20mln EUR annual payments. OH WAIT, not 20 mln ANNUAL payments. It's 20 mln when Inter wins Scudetto. 16-18 for CL placing and 3.8 mln EUR base payment if we place outside of eurocups zone. Base fucking payment. People involved with that deal are just first-class sabotagers. There's no a single word describing ridiculousness of that deal.

Other than those sponsors we didn't have anyone plus the stadium plus shit TV revenues in Italy. Plus incredibly strict settlement agreement, as we were denied voluntary agreement. You see, EPL team with same restrictions as us would still thrive with own stadium and EPL revenues. Even in today's La Liga the revenues are huge. But Inter is suffering in Italy.

Even in these ridiculous restrictions we were still able to pull of smart deals like Brozovic-Miranda-Perisic under Thohir rule who was obviously not strong financially. After Suning assumed control they are bending over backwards and come up with rather fake-ish sponsor deals from China but still we resort to purchases of Vecino-like players and loans. If we had proper sponsor deals with Pirelli and Nike (say, 35 mln each), we could afford much more in crucial moments of summer mercato. I just hope that in summer after SA is over we will be wise and buy proper top player and couple of midfielders not from Fiorentina. That's where Marotta should come up with brilliant ideas. In his last years with Juve all players who came were rather successful and integrated to the squad easily.

Bellinazzo Examines Inter’s Financial Situation

Il Sole 24 Ore journalist Marco Bellinazzo has examined the current financial situation that Inter find themselves in and touched upon the settlement agreement as part of a column for Goal.com.

“Inter and Milan are grappling with the idea of a roller coaster “repair market” and with the additional difficulty brought on by financial fair play, they risk limiting their operational autonomy. The effect could be similar for the two Milanese clubs, though the starting situations are clearly different.”

Bellinazzo then went on to discuss Inter’s situation with regards to the settlement agreement they signed back in 2015.

“The settlement agreement will remain in place until June 2019; The restrictions on player registration in European competition will remain in place and in addition to this there will be a need to maintain a balance between the values of players signed and moved on.

“Inter achieved their goal of closing the balance sheet even on 30 June 2018 by achieving capital gains of €45 million, mainly thanks to the sale of young players from the Primavera. By 30 June 2019, Inter does not have a downward obligation to reach a balanced budget and therefore is not forced to make certain capital gains.

“However, the management has decided to try and close the year balanced and then start next season completely free from UEFA sanctions.”

Bellinazzo concluded by taking a look at how Inter’s 2019 accounts could look like.

“Inter’s closed their 2017 financial statements with a loss of €17 million (after taxes) and a structural imbalance of about €50 million. The 2019 accounts will be heavier in terms of costs due to the impact of new purchases and contract renewals but will benefit from the Champions League and Europa League revenue.

“Obviously the latter depends on how far Inter go in the second-rate continental competition. In the end, it is likely that Inter will be in the red and need to resort to sales but a sale of even just €20 million could be enough. This should allow the Beppe Marotta to be able to move with a certain agility on the market.”

Good news, if true. This means we're one Gabinogoal away from having some freedom to do our thing.

Our thing, you mean splash some serious cash for some more Gabriel Barbosa's?

Sell 3-4 primavera with buyback and we are done with this capital gain bullshit.

Karamoh to Liverpool confirmed.

Inter Receive More Than €120 Million Per Year From China

Inter receive more than €120 million in sponsorship from China every year, according to La Repubblica.

The Nerazzurri are the only Italian club to still be controlled by Chinese investors, following the departure of Yonghong Li from rivals Milan and Jiang Lizhang’s decision to become a minority shareholder at Parma.

They are also one of a decreasing number of clubs in Europe to have Chinese owners, with Premier League outfit Wolverhampton Wanderers the next most high-profile example.

Inter therefore face less competition in the Chinese market than they did in previous years and are able to secure a vast array of sponsorship deals.

“China doesn’t have quite the same ambition to invest in football as it had in the past,” La Repubblica explained on Friday.

“This trend however has a glaring exception: Suning and Inter.“China, via Hong Kong, will soon control 100% of the club when outgoing president Erick Thohir sells his 31% stake to LionRock Capital.”

Suning pay Inter €16.5 million each year as part of the naming rights agreement the consortium struck last year for Appiano Gentile, with add-ons taking the figure to €23 million in 2018.

Among the other sources of income are Beijing Imedia and Beijing Yixinshijie, who together provide Inter with another €50 million, along with investment company Fullshare Holdings, who pay €10 million.

The paper also stated Suning now consider Inter to be worth at €800 million, however they currently have no intention to sell the club.

not sure where to write about for FFP

https://www.football-italia.net/133514/psg-sponsors-can-poach-allan

But you've got to fucking hand it to them, thats some next level ingenuity. Worried about FFP violations because your owner is heavily sponsoring your club? Sponsor the club of people you want to sign instead.

Fucking genius.

Those shortcuts look like neat and cunning ways to soften the FFP burden but will those tricks actually be implemented in real life? I remember people discussing CR7's salary of 30 million EUR net being paid by EXOR/Fiat so that Juve can show negligible figures in their annual report. Nothing happened. Currently it looks more like reports that Napoli is switching to Adidas later being denied by Napoli/Kappa.

That's some ridiculous bullshit and can't go through with UEFA by any means. If this is now talked in public by the press, no way can UEFA just look away and be okay with this.

Or then it's just some reporter's imagination. Let's see what happens, if Allan moves for 40m€, something's fishy.

Details Of Inter’s Sponsorship Agreement With Suning

Due to Inter’s performances in the first half of the season, they have earned €4.6 million through their sponsorship from owners Suning according to a report from Calcio e Finanza.

Soon after taking charge at Inter, Suning signed a sponsorship agreement with Inter worth €66 million across four seasons, an average of €16.5 million per season.

The agreement provides numerous bonuses relating to performances one of which being worth €3.5 million if Inter are in the Champions League. There are also bonuses related to individual results. A victory against any of Juventus, Napoli, Roma or Milan is worth €550,000. Having beaten both Milan and Napoli this season Inter have earned €1.1 million.

The biggest bonus concerns final league placing. If Inter finish third they will earn €3.5 million, €8 million for second and €10 million if they win Serie A.

The agreement is not strictly limited to the first team either. For every competition Inter’s Primavera win it is worth €500,000.