The Suning Commerce Group

But there's no evidence to suggest they wouldn't spend if they could. I haven't checked for this season but last season they were still doing like 100m debt to equity conversion in inter

Sokrates said:

Well it's all business. We don't know how their business plan was, maybe they wanted to "bring Inter to the top" and then sell it for a huge profit. Then it didn't work (corona etc.) so they changed the strategy.

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Thats not entierly true or lets say it cant be cause the investment stop from china came from the CCP... Suning and others were discouraged to invest any further money in things like football especially if it is abroad.
Sunings financial problems and corona came later.. Ofcourse they made things a lot tougher.

Also it s not like suning ever took money out of inter it s just that they cannot cover our losses every single season any more.

Only thing that confuses me is that they are apparently struggling to sell us which imho should not be that hard even for that reported 1bio they are asking.

The issue with selling is that the club has 400m€ debts and the asking price is 1bn€. I think that's too much for the buyers. New owners would either have to cover that debt ie. pay 1.4bn€ for the club or then keep selling assets to be able to finance the debt which means the club itself would get weaker (like last summer).

Can someone clarify how does milan have no debt now.

Did elliot write it all off, because the debt was owed to them?

I understand that's what they did.

.h. said:

Before the capital flow lockdown Suning invested hundreds of millions into Inter. If it wasn't for them we wouldn't have had Lukaku, Barella, Eriksen, Bastoni,etc. Your inability to remember that doesn't change reality or history.

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Interisti aren't ungrateful. Suning have done many good things for the club. They brought lots of sponsorship money from China which raised our revenue and allowed them to improve the team. They brought Spalletti who led us back to CL. They brought Marotta. They brought Conte. They invested heavily in 2019 and built the squad that won Scudetto. They made us relevant again, made us champions again and they made us dream again and we thank them for that. Credit for Scudetto goes to Suning.

But since last summer there's no Suning project anymore and they're just trying to survive. You have to admit if we want to have any chance of staying competitive we need investments this summer. Even if we were allowed to have zero net spent mercato this could work. But if we need to raise 60m or more from sales every summer then we aren't going anywhere. Eventually all your good core players will be gone and they will be replaced by worse players which will drop the level of the team year by year.

I don't believe they can invest money at Inter but they don't want to or they aren't allowed to by CCP. One has to be naive to believe that. They needed a freaking government bailout and Zhang was removed from his position. They have huge problems in China. They were forced to take a loan from a freaking vulture fund with an insane interest rate. But this makes their decision to stick with Inter even more buffling and frustrating. If they can't financially support the club anymore then it would be the best both for the club and their Inter legacy to find a buyer who can take the club forward. The more they stay the more they tarnish any good thing they have done.

Harpsabu said:

Can someone clarify how does milan have no debt now.

Did elliot write it all off, because the debt was owed to them?

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Calcio e Finanza claim Milan is debt-free, minus any short-term debt (that essentially every company carries).

Amazing what having owners with business acumen does for you.

ADRossi said:

FOOTBALL AFFAIRS: Elliott, la seconda fase tra stadio e l'interesse dei mercati

Il Milan dovrebbe terminare l’esercizio finanziario 2021/22 con una perdita di 50-60 milioni. Nei fatti quindi la società rossonera sta proseguendo anche a livello contabile quel percorso di risanamento iniziato…

www.calcioefinanza.it

Calcio e Finanza claim Milan is debt-free, minus any short-term debt (that essentially every company carries).

Amazing what having owners with business acumen does for you.

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It's not really a question of business acumen. Milan I believe have lost more money than we have in recent years. The difference is their owners have just recapitalised the shares rather than raised debt to fund it. They're only marginally worse run than Inter from the financial perspective in the last few years

CafeCordoba said:

The issue with selling is that the club has 400m€ debts and the asking price is 1bn€. I think that's too much for the buyers. New owners would either have to cover that debt ie. pay 1.4bn€ for the club or then keep selling assets to be able to finance the debt which means the club itself would get weaker (like last summer).

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Yes but this is why i would like to get some clarity on the debt and the asking price again some articles claim the debt lies with suning who then just invested the money in inter in that case the debt would probably already be included in the 1 bio asking price. As in the new owner would get a almost debt free club for that 1 bio.....

There are just a lot of contradicting reports regarding our debt and how its structured which is why the 1 bio could be a pretty reasonable ask just as well as it could balon to 1.4 if you also wann get rid of the debt.

Anyone know Jeff Bezos? I hear he is pretty wealthy.

Capo said:

Anyone know Jeff Bezos? I hear he is pretty wealthy.

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Heard rumors, he was pondering a move to politics, he can do more damage that way.

I second every Il Drago said. I defended them countless times last year for doing a fantastic job up until the pandemic. However that project has not only halted but is completely gone.

At this point it's clear in my eyes at least that they dont intend on being here much longer. They are aggressively selling players in a way that is very rare at historic level clubs like Inter. We aren't Real Madrid or Bayern but we are a top 10 level club historically.

As of right now, they're selling key players so that they can get a better deal when they finally sell. That's for the betterment of Suning, not Inter. I'd rather they sell us now for a lower price than continue dismantling a team that could've been an Italian dynasty.

Suning are similar to Arsenal and Uniteds owners. They clearly care way more about money than the actual club. The difference is EPL teams can piss money like water which is why I ignore all of those fans that bitch about owners while they still spend 100 plus mil a year.

I believe Suning had good intentions and did a very good job. I'm grateful for that but the buck stops here. Dybala will be free and we replace Alexis salary with his. Bremer will likely be Pinamonti and 10-15 million. Assuming we could sell some garbage for 10-15 mil they wouldn't even have to lose a penny on the two primary targets. They made like 150mil in profit last year. That's enough.

Adriano@10 said:

Yes but this is why i would like to get some clarity on the debt and the asking price again some articles claim the debt lies with suning who then just invested the money in inter in that case the debt would probably already be included in the 1 bio asking price. As in the new owner would get a almost debt free club for that 1 bio.....

There are just a lot of contradicting reports regarding our debt and how its structured which is why the 1 bio could be a pretty reasonable ask just as well as it could balon to 1.4 if you also wann get rid of the debt.

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Inter, the club, has around 400m€ debt. Then Suning, with its Luxemburg holding company, took that Oaktree loan (275m€) which have been used to fund the club operation (not all have been used yet I've understood).

BasedGodPunk said:

I second every Il Drago said. I defended them countless times last year for doing a fantastic job up until the pandemic. However that project has not only halted but is completely gone.

At this point it's clear in my eyes at least that they dont intend on being here much longer. They are aggressively selling players in a way that is very rare at historic level clubs like Inter. We aren't Real Madrid or Bayern but we are a top 10 level club historically.

As of right now, they're selling key players so that they can get a better deal when they finally sell. That's for the betterment of Suning, not Inter. I'd rather they sell us now for a lower price than continue dismantling a team that could've been an Italian dynasty.

Suning are similar to Arsenal and Uniteds owners. They clearly care way more about money than the actual club. The difference is EPL teams can piss money like water which is why I ignore all of those fans that bitch about owners while they still spend 100 plus mil a year.

I believe Suning had good intentions and did a very good job. I'm grateful for that but the buck stops here. Dybala will be free and we replace Alexis salary with his. Bremer will likely be Pinamonti and 10-15 million. Assuming we could sell some garbage for 10-15 mil they wouldn't even have to lose a penny on the two primary targets. They made like 150mil in profit last year. That's enough.

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Suning did not make profit. The money Inter made with transfers last summer went to Inter. Inter has transfer fees to pay (from earlier years) and salaries to pay to the players. Remember we made -245m deficit last season. It included all kind of shitty shit so deficit is not gonna be that big this season + we use those transfer sales to cover the deficit. This club is still not making enough money to cover its costs.

But we are trying to lower our costs every season, hopefully this summer we SOMEHOW manage to do that, ie. lower salaries. Even though only thing people are hoping for is signing dybalas of the world and their 6-7m€ net salaries.

CafeCordoba said:

Suning did not make profit. The money Inter made with transfers last summer went to Inter. Inter has transfer fees to pay (from earlier years) and salaries to pay to the players. Remember we made -245m deficit last season. It included all kind of shitty shit so deficit is not gonna be that big this season + we use those transfer sales to cover the deficit. This club is still not making enough money to cover its costs.

But we are trying to lower our costs every season, hopefully this summer we SOMEHOW manage to do that, ie. lower salaries. Even though only thing people are hoping for is signing dybalas of the world and their 6-7m€ net salaries.

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I would say 90% of us fans would glady accept that we don't sign dybala if it means no big sales. Just a few shrewd signings and young players plz.

Anyway, hopefully with the stadiums open again next season we are finally back to normal. There can't be an excuse not to be.

Yes the money goes to inter, however they're going to sell us and the sales are to lower debt in order to sell. Really they're selling players so they can make more in the future, not so inter can be financially healthier. I mean thats business but its tough to accept. It's just hard for me to wrap my head around the idea that the only way to cut costs is to sell 200 million in player assets every 2 years til we're out of the woods.

Maybe I'm just overly frustrated atm and thinking irrationally, but we surely cannot be the only somewhat ambious club in world football selling key players every summer. I mean has there ever been a precedent of a title contending team dumping players like this without reinforcing in the modern game? Milan lost gigi and hakan but they chose not to re sign because milan didnt offer enough to my knowledge. Same with Kessie. It wasn't a, were getting rid of these guys no matter what type of thing like were seeing her with sales.

Yeah it fucking sucks. By doing this, they also lower the value of the asset (the club) so why not just fucking sell the whole damn thing?

Fuck Suning.

BasedGodPunk said:

Yes the money goes to inter, however they're going to sell us and the sales are to lower debt in order to sell. Really they're selling players so they can make more in the future, not so inter can be financially healthier. I mean thats business but its tough to accept. It's just hard for me to wrap my head around the idea that the only way to cut costs is to sell 200 million in player assets every 2 years til we're out of the woods.

Maybe I'm just overly frustrated atm and thinking irrationally, but we surely cannot be the only somewhat ambious club in world football selling key players every summer. I mean has there ever been a precedent of a title contending team dumping players like this without reinforcing in the modern game? Milan lost gigi and hakan but they chose not to re sign because milan didnt offer enough to my knowledge. Same with Kessie. It wasn't a, were getting rid of these guys no matter what type of thing like were seeing her with sales.

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This argument doesn't really make sense to me - by selling an asset on the balance sheet you just replace an asset with the same amount in cash. It doesn't affect the valuation the only case where it does really is when we sell a player for more than perceived market worth (not book valuation)

.h. said:

This argument doesn't really make sense to me - by selling an asset on the balance sheet you just replace an asset with the same amount in cash. It doesn't affect the valuation the only case where it does really is when we sell a player for more than perceived market worth (not book valuation)

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Well it affects since we lower the sports capability => poorer results => less revenues.