Key point in your article is that we won't break if we don't finish top 3... As you mentioned, it will force the need for a big sale to balance the books. Accounting aside, our losses will be even larger because of amortized transfer spending and the increased wage budget. Don't forget about transfer spending next summer.
Lastly, our books are heavily dependent on qualifying for UCL. This isn't a good thing because I don't think it'll be a sure bet next season even if we do it this year.
All that has been factored (including increased amortisation costs, increase wage bill, and next summers spending) into my analysis above.
While our future growth is dependent on regularly qualifying for the CL, like any big club, this analysis shows that we can sustain a similar transfer strategy to this summer for a few seasons even if we do not qualify for the CL every year. It looks much better than this time last year, ET is being reasonably smart with the finances.
If we do qualify for the CL this season, I suspect Thohir will approve another big spend (€100m-ish) next summer in order to sustain our league position as well as attempt to get further than the group stage in the CL. From the analysis above, it looks likely that he will be able to do this and meet FFP obligations.
If we don't qualify for the CL this season, we will probably sell someone like Icardi to fund a big spend next summer.
I am satisfied with the progress we have made from a financial point of view. It will be interesting to see last years accounts to see if the starting point I assumed (based on media reports) is more or less accurate or not.
bluenine, this is what i can gather from your posts:
if we don't qualify for CL, it will be easy to continue to comply with FFP. however, the only way to reinforce the team and spend a lot of money while continuing to comply with uefa regulations is to make a really big sale. this can be a big hit to our squad quality. accounting aside, our losses will still be a massive issue and thohir will have to cover them as he has done over the past 3 years. if he wants to use "organic cashflows" and if he doesn't want to cover them himself, correct me if i'm wrong, but we'll have to make two really big sales.
if we qualify for CL this year (and this should also be valid for qualifying for CL next season in the last case), we will obviously be in compliance with FFP and our losses will be covered by CL revenue. there is the question of how much money we can spend on reinforcements. qualifying for CL once doesn't necessarily mean you will do it again especially if our competitors (napoli, roma, milan) reinforce. you're saying FFP would be easy to deal with even if we spend 100 mill. however, the money for another splash would have to come out of a big sale and thohir's pocket because CL revenue would be going towards our losses. if thohir doesn't want to sell key members of the team and he doesn't want to spend too much of his own money, then there are very reasonable questions re how we will improve in the short term. i don't believe this team is good enough nor does it have enough depth to cope with 50-60 games in a season.
it's normal when the future growth of an ambitious club is dependent on regularly qualifying for europe, but it's abnormal and a bit dangerous when the financial health of a club is dependent on qualifying for CL when they haven't been in that competition for 4 years..
Same as Kova - K-Dog. We can sell Icardi for, say, 50M and spend much-much more no probs as the money we're getting will offset yearly amortisation of all new arrival's transfer fees and wages.Yeah, but we are not really that good at selling and however buys Icardi for more money than we would buy Lacazette is fucking retarded.
Inter have announced a net loss of more than €45m for 2014-15, but President Erick Thohir says ‘we’ve worked well in the market.’
The club announced this morning that they have made a loss of €45.3m over the last year, but non-recurring expenses for previous coaching staff, player contracts on Financial Fair Play obligations reportedly mean the real figure is €74m.
However, Thohir is convinced that the figures show that the club is heading towards a positive future, while discussing a new sponsor.
“The financial results for 2015 show that we are leading the club and our business in the right direction,” he said at a Press conference.
“The commercial revenues are growing and our operating profit (EBITDA) is positive, an important achievement for the club.
“We will continue with our strategy to build a successful team on the field and a solid business off the pitch, of course, aware of the need to respect the parameters of the Financial Fair Play.
“There have been allegations about new sponsors. We worked well in the market. We will make new signings only if the team really needs it, there will be no unnecessary purchases.
“We have built a strong team, the goal is the Champions League. We are sure to meet the obligations imposed by UEFA.
“We believe in the Mancini’s project - we have some weaknesses, but we will grow.”
Wasn't the predicted loss a lot more
Kova sold for 29mil
Hernanes for 11mil
K-Dog bought for 31mil