Inter's Financial Situation

[.h.]

As far as I'm aware, we arent paying Young anything like 2m net for half a season. I thought it was 1.5mil net for half a year, and the contract extension was 3 mil net for a year.

Also if you look at the numbere for example for eriksen, it suggests he's taking a massive pay cut for next season?

 

[CafeCordoba]

Yeah, apparently something is seriously off in those numbers.

 

[brehme1989]

Okay man, he made an excel file and possibly has a few mistakes. No need to bite the guy, he did a solid effort given the resources.

 

[.h.]

I'm not criticising. Just trying to get the numbers right. Kts a really useful and helpful tool - I'm.prerty sure with a couple of tweaks it's great insight into our cash situation next season.

None of my comments have been 'biting', its been fact checking

 

[pier]

Yeah, the point I make this spreadsheet is to give us insight on our possible next move.

I have updated the files with some conditional formatting for easier viewing, although I'm not quite sure how to insert Young actual account into it. browha and Cafe might be can help out.
Also regarding Eriksen's wage, I just convert it from this news https://bleacherreport.com/articles...eriksen-inter-milan-agree-to-45-year-contract
Yeah, it's bleacher, not sure what the actual value is but I think it gave us a rough value at least.

Few more notes;
• If we manage to offload Joao Mario, Nainggolan, Perisic, Dalbert and Lazaro, it will save us almost €50m. Although it is harder on Radja case.
• Godin and Vecino are probably on top of transfer list considering their commanding €20m on the balance cost.
• If management unable to sell Skriniar for plusvalenza, he most likely get contract extension for 2 more year to spread that amortization cost.

Feel free to edit the data here
https://docs.google.com/spreadsheets/d/1Ht4VJdRUknPC_QX0rxVQ-dPnYBiV6MFjbhafs9ZGePY/edit?usp=sharing

 

[.h.]

TBH I wonder if you'd be better off starting from the end of this season.

e.g. you can get rid of Moses, 0 book value Young, take Eriksen after 2/9ths amortisation (for a half season on 4.5 year contract), put Hakimi at the start with no amortisation

Then you dont have to worry about wages or anything like that, the numbers just stand by themselves. For that extent, I'd assume Biraghi and Sanchez dont stay at Inter for now


I'll try to get round to editing some of the data when I can.

Agree with your assessment though - the book cost of Dalbert, JM, Nainggolan, Vecino and Godin is insane. Save 53mil a year by offloading those guys. Frees up a LOT of cash for us to play with next season.

- - - Updated - - -

Ah OK Thats basically what you did do

I'd leave it as it is for now - if we confirm Moses or Biraghi (etc) leave, then we can amend at that point in time.

The Icardi sale will generate like +55m euro plusvalenza in the summer, which goes a long way to offsetting a circa 217m euro run cost - interesting to see its about half amortisation half wages.

Even without any plusvalenza, selling Perisic, Vecino, Godin, Nainggolan, JM, Dalbert, Gagliardini and Lazaro would make such a difference. With no plusvalenza on average, that'd be 84m of euros of book value freed up, and 40m of amortisation from next season, with another 37m of wages (approx) freed up. That alone pays for a few good transfers next summer.

reckon we can sell Vecino, Perisic, Godin, 9golan, JM, Dalbert, Gags and Lazaro for 84m? Even conservative values of them at 10m 13m, free, 13m, 13m, 6m, 15m, 12m is already 82m

 

[Harpsabu]

Very interesting read boys thanks for putting the hard work into that.

 

[.h.]

the one thing to call out, too. Our usual trick of contract extension wont necessarily work so well either now - there arent many players you can extend and significantly reduce amortisation. Lautaro and Skriniar are the obvious two, Bastoni as well. Extending Lukaku might knock a little bit off but we can only do +1 year on his cujrrent contract?

Gags and Vecino are options, if they dont get sold, but I really hope we dont do that - it's spiting ourselves on the salary front in the longer term.

 

[brehme1989]

What happens with some transfer clauses we have? For example with Lukaku the deal is closer to 72 or even 75m at the moment with the final 5m definitely still not triggered. Do we add the extra 10m in his second year since it wasn't part of the initial book entry, evne if they occur during the reporting period? Sometimes I'm a bit at loss with these football accounting practices.

 

[.h.]

Honestly, I'm not entirely sure. My naive guess is that we'd add the extra 10m to his book value in this year, and it'd amortise like normal, but I dont know for sure.

 

[brehme1989]

Honestly, I'm not entirely sure. My naive guess is that we'd add the extra 10m to his book value in this year, and it'd amortise like normal, but I dont know for sure.

That's my guess as well. But I haven't seen any detailed reports on this.

 

[CafeCordoba]

I think it's up to the club how bonuses are amortized but I think they are usually amortized when they get activated.

Also it's interesting how we structured Barella deal with 10m€ loan + 27m€ mandatory redemption. So that 10m€ amortization started last summer and the rest starts this summer?

Also, how there's book value in Godin when he was a free transfer? Or do I mix things up here?

 

[.h.]

I naively guess thats right re barella - 10m for one year, and then 27m over his contract.

Godin doesnt have any book value - are you looking at his estimated market value column?

 

[brehme1989]

I think it's up to the club how bonuses are amortized but I think they are usually amortized when they get activated.

Also it's interesting how we structured Barella deal with 10m€ loan + 27m€ mandatory redemption. So that 10m€ amortization started last summer and the rest starts this summer?

Also, how there's book value in Godin when he was a free transfer? Or do I mix things up here?

The actual deal is 12 + 25. No idea where 10 + 27 comes from.

We are actually paying 1m per month during the loan, not sure how many payments there are for the remaining 25. I think it's a straight up cash deal.

 

[CafeCordoba]

Sorry yes, 12 + 27. I don't understand why it was structured like that then? Why did we wanted to pay that 10m€ in the first year? Why didn't we just do 37m€ deal and amortize his book value evenly so the hit for the first year would have been less than 8m€?

Maybe that loan fee is not "accounted" (or whatever the term is?) the same way as normal book value to the balance sheet + amortizations? I don't have a clue but that's the only way it makes any sense to structure the deal like we did.

 

[.h.]

its not a loan with an obligation, is it? it was probably so we could hedge our bets. Also probably they expected to get a lot of plus valenza frmo Icardi, and by buying Barella in such a way that we amortised 12m in the first year and then 5.5m a year after, it would have been better

 

[brehme1989]

It's a loan with obligation.

 

[.h.]

then maybe something like what i posted above, try to reduce his subsequent amortisation
the other option - cagliari wanted money now to strengthen?

 

[brehme1989]

then maybe something like what i posted above, try to reduce his subsequent amortisation
the other option - cagliari wanted money now to strengthen?

I don't think we have paid 12m in one lump. It was supposed to be in 6 or 12 instalments.

 

[CafeCordoba]

its not a loan with an obligation, is it? it was probably so we could hedge our bets. Also probably they expected to get a lot of plus valenza frmo Icardi, and by buying Barella in such a way that we amortised 12m in the first year and then 5.5m a year after, it would have been better

Okay, actually I thought that scenario. It kind of makes sense that we take the big hit from the start since they can offset it with Icardi plusvalenza.

But the thing is that can be done with regular transfer also. Napoli does amortization differently. They amortize aggressively, more earlier and not evenly distributed in each contract year. That way when there are like few years left of the contract, the book value is pretty low and they sell the player, they'll net bigger plusvalenza. I guess that kind of model works in a club whose operation is based on selling players.