Inter's Financial Situation

CafeCordoba

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I really doubt we are going to do mega transfer this summer. I think we need to sell some players to even get all the new players to our CL list (settlement agreement). And book-wise I don't think we can do that kind of transfer unless we can do massive sales campaign which I doubt we manage to pull off.
 

chipschups

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Do we have the book value of our players for 2018-19? And any indication of our projection? If let's say the bare minimum is to reach top 4 in Italy and participate in the Champions League groups until December, what kind of deficit/profit are we looking at? I'm well aware that we need to conclude deals on the Malcom and Florenzi/Vrsaljko/Zappacosta fronts + Rafinha as well, but I'm just asking if anyone has found anything. Calcio E Finanza usually comes up with decent articles about this but didn't have the time to check. It will be interesting to see if we can pull off a mega transfer (70-100m) this summer if we can rely on selling around 30m worth of plusvalenza at the end of the year and the potential sales of Joao Mario, Eder, Barbosa(on loan until December with an option to renew until next December), Candreva etc.

If you mean can we sign SMS for 70-100 mil? Yes we can, but we cant registered him on CL list. All article stated we have money to spent for this year and actually we can pay 60 mil outright for both Malcom and Politano without any sales and only CL list who stopping us because we guaranteed to get atleast 100 mil from CL money, sponsor, tv rights etc this season. So far we made 5-10 mil profit all of this trf before July including Nainggolan one without this season money, so logically if we selling another around 30-50 mil for sure we can afford to buy SMS but on the expense not signing Malcom and Politano. This is what we gonna spend in the of 18/19 season

Politano 20 mil
Malcom 40 mil
Vrsaljko 20 mil
Dembele 15 mil
===========
Total 95 mil

Nainggolan and Lautaro trf already been paid by those primavera sells and kondogbia money. So this 100 mil is transfer budget from CL money without selling any player. If you dream about signing SMS for 100 mil, he pretty much cost as much as those 4 player, think Inter wouldnt that dumb to put their all egg in one basket.

Eder 10 mil
Candreva 15 mil
Jomario 30 mil
Vecino 35 mil
========
Total 90 mil

Even if Ausilio miraculously selling those player guess they wont spend it this season, think Malcom is their only big signing this season and a first step to go big, I believe next season with no restriction Inter will pull some mega transfer but clearly not this season just be patient.

But if you ask can we sign super duper mega transfer like Ronaldo 100 mil with 30 mil/years salary? we need Nike and SUNING help to do our favour. Maybe Nike can pay his release clause like Qatar with Neymar so we can sign him for Free, and then Suning pay most of his wages with Promotional Contract, and people says FIAT will pay 20 mil of his wage with that trick.
 

CafeCordoba

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Anyone (like chipschups) care to explain how this these assets values are calculated with loan situations.

Scenario A:
Inter buys player for 30m€, signs him to 5-year contract with gross salary 6m€. Total amortization costs annually are: 30m€/5 (transfer fee) + 6m€ (salary) = 12m

Scenario B:
Inter loans player for 8m€, signs him for 5-year contract (given there's an option to make the transfer permanent) with gross salary 6m€. Total amortization costs annually are: 6m€ (salary) + 8m€ (loan fee) = 14m€ ???

Is this because it's not the amortization costs which we need to get in line but specifically this CL list thing (part of the settlement agreement)? So that they count only transfer values and as we can get the player for only 8m€ (for this particular season) and not for 30m€, it's better for us?

Of course here I'm referring to Vrsaljko transfer and already collapsed Malcom transfer (which would have included something like 10m€ loan fee).

Wasn't there some hiccups from UEFA regarding our amortization costs also?
 

ScottishInterista

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I believe our amortization costs were too high for UEFA. It's why we're no trying to get every as an option to buy
 

CafeCordoba

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But amortization costs over the years I assume.

Because in my example, the costs in scenario B is higher than in scenario A for this current season.

So how does it go, we should decrease our amortization costs over the years, meaning the situation won't stop after this season either but we must be tight with the money from next summer on too? For this season, it's the CL list we must be precise (settlement agreement) but the amortization costs will be always there, no matter which year if we want to ever buy new players.
 

Adriano@10

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Anyone (like chipschups) care to explain how this these assets values are calculated with loan situations.

Scenario A:
Inter buys player for 30m€, signs him to 5-year contract with gross salary 6m€. Total amortization costs annually are: 30m€/5 (transfer fee) + 6m€ (salary) = 12m

Scenario B:
Inter loans player for 8m€, signs him for 5-year contract (given there's an option to make the transfer permanent) with gross salary 6m€. Total amortization costs annually are: 6m€ (salary) + 8m€ (loan fee) = 14m€ ???

Is this because it's not the amortization costs which we need to get in line but specifically this CL list thing (part of the settlement agreement)? So that they count only transfer values and as we can get the player for only 8m€ (for this particular season) and not for 30m€, it's better for us?

Of course here I'm referring to Vrsaljko transfer and already collapsed Malcom transfer (which would have included something like 10m€ loan fee).

Wasn't there some hiccups from UEFA regarding our amortization costs also?

First of all salary costs are not amortization costs so you should take those out of your examples.
And yes UEFA told us that we need to cut our amortization costs in order to comply with the SA.
So in your first example the amortization costs would only be the 6 mio. the salary will be shown as payroll or salary expenses and has nothing to do with amortization.

In your second scenario the amortization costs of the player is 0 he s not our asset as long as we dont make the deal permanent so there is no need for accounting the depreciation of the asset. The amortization costs (depreciation) will always be with who ever owns the asset if you only loaned it there will be no cost incured due to the asset losing value since your not the owner.

Now since as far as i know uefa has no problem with the hight of our payroll or the costs of our loans we try to loan players in order to not get in trouble with uefa when it comes to amortization.

One more thing even though i m not 100% sure on this. The problem with loans with obligations is that you d need to start depreciating the Asset from the moment the loan starts and not the moment the deal is made permanent. So doing a loan with obligation is of no use to us since the amortization will be the same as if we outright bought the player.
Now like i said not 100% sure on this but thats how it works if you loan production assets where you have a obligation to buy them later on. And since uefa requires us to report under IFRS i would think it should also work like this for players.
That all being said last time i really looked into this was over a year ago so i might be wrong about the whole obligation thing.
Also somebody claimed thats how PSG fooled UEFA with the mbape move, which again i m not sure if that was the case.
 

este19

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Anyone (like chipschups) care to explain how this these assets values are calculated with loan situations.

Scenario A:
Inter buys player for 30m€, signs him to 5-year contract with gross salary 6m€. Total amortization costs annually are: 30m€/5 (transfer fee) + 6m€ (salary) = 12m

Scenario B:
Inter loans player for 8m€, signs him for 5-year contract (given there's an option to make the transfer permanent) with gross salary 6m€. Total amortization costs annually are: 6m€ (salary) + 8m€ (loan fee) = 14m€ ???

Is this because it's not the amortization costs which we need to get in line but specifically this CL list thing (part of the settlement agreement)? So that they count only transfer values and as we can get the player for only 8m€ (for this particular season) and not for 30m€, it's better for us?

Of course here I'm referring to Vrsaljko transfer and already collapsed Malcom transfer (which would have included something like 10m€ loan fee).

Wasn't there some hiccups from UEFA regarding our amortization costs also?
But amortization costs over the years I assume.

Because in my example, the costs in scenario B is higher than in scenario A for this current season.

So how does it go, we should decrease our amortization costs over the years, meaning the situation won't stop after this season either but we must be tight with the money from next summer on too? For this season, it's the CL list we must be precise (settlement agreement) but the amortization costs will be always there, no matter which year if we want to ever buy new players.

Adriano pretty much covered things, but mostly I just wanted to add that the rumored Vrsalkjo formula you refer to (8m€ fee, 17m€ option) not only seems to confirm my already strong suspicions that we are in a much stronger expense position than capital, but makes me wonder further about the details of our asking price for Joao Mario.

On Vrsaljko:
As Adriano points out, amortization on loan + option is 0€ in capital/amortization, regardless of the amount of the loan fee. But as you observe, it also means he actually costs us more this year than if we bought him outright this (e.g. 25m€/5yr contract = 5m€, vs the 8m€ loan fee). But that 8m€ is pure expense instead of amortization. It's slightly ridiculous to me that we're outputting more this year than we would for a straight buy, but it makes sense when you consider how much more € we're bringing in this year than last, between CL and new sponsorships. It speaks to trying to fulfill the SA and not just FFP.

To your bit I bolded:
"This situation" will stop starting next summer (I think). As far as I can tell, it's only our Settlement Agreement that is putting additional conditions on us beyond simply being profitable. Once the SA is done, we are under general FFP, and from what I understand, general FFP only needs us to be profitable. So at that point we would only care about what € value is recognized in a year, whether it is amortization or expense wouldn't actually matter, so we wouldn't have to do loan + option gymnastics anymore. Doesn't mean we can spend like ManU because we don't have their incomes, but it will be a huge help to not be shackled to the loan + option formula any longer.

On Mario:
The Vrsaljko situation makes me wonder how a capital loss would actually be treated differently than how I'm used to seeing it treated. On Vrsaljko we are taking a bath on expense so we don't need to outlay capital. But if we were to sell Joao Mario outright or with loan + obligation, even if we did that an made a loss, that loss should accelerate onto our books this year and be considered an expense. That we don't seem willing to budge whatsoever on the asking price makes me question whether that's truly just a negotiating position, or if there is something in the SA which penalizes us for writing down the values of any of our players?

Ugh. I can't wait for our SA to be over. My head hurts. :wallbang:
 

CafeCordoba

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Thanks thanks! Great explanations.

Now I understand this concept as perfectly as you described it. And it makes total sense, loan player is not our asset, so it's just another expense for the year. To me these rules in the settlement agreement are just very odd to me. But whatever, this is how it goes.

And yeah, can't wait to get over with this SA shit.
 

javier_zanetti <3

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From next season we don't need to balance our transfer book as long as we are balanced in general.
 

Caecuban

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I'm curious to see how much is our wage list for 2018/19.

I hope we are able to keep it balanced considering players on free transfers usually have higher wages.
 

chipschups

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I'm curious to see how much is our wage list for 2018/19.

I hope we are able to keep it balanced considering players on free transfers usually have higher wages.





This is our wages bill last season with total gross wages only 82mil and being 4th behind Roma probably the lowest in past 10-15 years. Now if we calculating with how our transfer will goes..

Wages out
Joao Mario 2.7 m*
Cancelo 2m
Eder 1.8m
Vecino 1.7m*
Nagatomo 1.3m
Santon 1.3m
Pinamonti 0.5m*
Van heusden 0.1m
--------------------
Total 11.4m

Wages in
Vidal 4.5m*
Nainggolan 4m
De Vrij 3.7m
Asamoah 3.2m
Vrssljko 3m*
Icardi +2.5m
Politano 1.5m
Skriniar +1.3m
Lautaro 1.2m
--------------
Total 24.9m


So we expected to add 13.5m net wages this season which probably make our gross wages is around 90-100m which is still acceptable and we probably still behind Juve and Milan.
 

brehme1989

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Didn't Perisic extend his contract with a 4.5m deal until 2022?
 

chipschups

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Didn't Perisic extend his contract with a 4.5m deal until 2022?

Perisic, Miranda (2020), Handa (2021) already extend their contract, but I dont think Perisic new contract is that high since all the news outlet always mention Nainggolan is our second highest earn after Icardi, So its expected around 3.5m.
 

M.Adnan

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If you ever doubt that life is unfair, remember that Milinkovic-Savic earns much less than Gabriel Barbosa, Joao Mario and almost all of Milan's trash players.
 

chipschups

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Well its expected Big club, Big Paycheck, Big pressure. The times you didnt get perform, they will put hanging in your neck right away. Same goes when you work at smaller company, you had more freedom and do what you want being a bigger fish on small pond. But when you choose to move on Bigger ocean, that is real test for you if you really had a guts to swimming with high pressure or not. Saddest thing is some of our player is definitely couldnt take that pressure and just living his life enjoying his big fatcheck.
 

JJM

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37948145_10157723531768696_4299661557815574528_o.jpg

SEASON TICKETS ALMOST SOLD OUT AT QUOTA 37k
 

Wobblz

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Meanwhile Juve has sold 29k so far... with fucking Ronaldo :yao: Piss off wankers.
 

Caecuban

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So we expected to add 13.5m net wages this season which probably make our gross wages is around 90-100m which is still acceptable and we probably still behind Juve and Milan.

1. Really thank you, your post is as detailed as I could imagine!

2. The impact is lower than I thought considering all the players we signed / plan on signing. This really is a wonderful mercato so far, strengthening our squad a lot while not going bankrupt.
 

Dylan

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Ranocchia earning that much makes me angry as fuck. If I hear one more "bandiera" excuse I will scream. Fuck off.
 

Jnr

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Meanwhile Juve has sold 29k so far... with fucking Ronaldo :yao: Piss off wankers.

Thats their limit. A 40k seat stadium can't have 37k season tickets.

Why did they build a 40k seat stadium in the first place, now thats the million dollar question?:trollol:
 
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