Inter's Financial Situation

[Il Drago]

This is exactly what Marotta said.

Beppe Marotta: “Same Problem At Many Clubs But Inter’s Always Magnified, Players Contracts Will Be Respected”

Beppe Marotta has assured Inter will honour their players’ contracts despite the club’s well-documented financial problems.

Inter’s players were asked by president Steven Zhang to give up two months’ wages, in order to help Suning tackle the club’s financial problems.

Speculation has reached fever pitch this week about Inter’s economic crisis, but Marotta has made it clear there will be no problem respecting the pre-existing deals if no new solution can be agreed.

“The contracts which tie the players to the club will be honoured,” Marotta told Sky Sport Italia before tonight’s match at home to Roma.

“There’s always extra attention on Inter in the media which magnifies problems, even though other clubs are having the same problems.

“We’ll deal with these issues with our conscience.”

Zhang went to visit Inter’s players at Appiano Gentile on Monday to request the wage cuts, and reports since have suggested his proposal did not go down well.

Asked if Inter’s players really were irritated by the request, Marotta responded: “Everything started with a meeting with the president, who explained the current moment football is experiencing with maximum serenity.

“Zhang made the players aware of the delicate position the club is in, but he didn’t oblige anyone (to take wage cuts).

“It’s up to everyone to make a decision with their conscience.

“We have full respect for the players who have given the club an extraordinary joy this season (winning the Serie A title).

“I’ll repeat: Inter will honour all their agreements.”

Antonio Conte’s future remains uncertain as a result of Inter’s off-field problems, and Marotta was unable to guarantee he would still be the Nerazzurri’s head coach next season.

“I hope so, both as a director and as a person,” he said.

“We’ve begun a project with him, despite the COVID-19 pandemic which has caused all sorts of problems.

“If I consider the work Conte has done in these last two years, we finished second and reached the UEFA Europa League final (in his first season) and then won the scudetto with several games to spare.

“The hope is that we can continue despite all the problems.”

Marotta was also asked whether Inter were likely to sell one or more key players in the transfer window, assuring supporters that the club’s situation was not as bad as some have made out.

“We’re not in such a disastrous situation that we’ll have to wipe out everything we’ve done so far (by selling players),” Marotta said.

“We must be optimistic heading into the future, but at the moment we must focus on the nice things we’ve achieved and the season isn’t over.

“The club will then announce what they need to announce and respond to all questions.

“It’s at this time of year that all clubs sit down and plan things for the future, and we’ll do that in good time too.”

Marotta also spoke of his pride at seeing Inter win the Serie A title again after 11 years of waiting.

“Regardless of the gap with Roma in the table (27 points), we’ve done an extraordinary thing this season which must be credited to the coach, the team, the technical staff and obviously the club for their support,” he added.

“Perhaps we still don’t realise the magnitude of what we’ve achieved.”

Each person can make his own conclusions.

 

[magnesium]

Marotta will sell players if Suning doesn't want sell our club. We need much money if we want keep Conte.

Conte must be desperate to get players he want next season, especially after he deliver Scudetto.

 

[Ethor]

I think it's time to relax a bit and chant the mantra: "Nothing f**ked Dude, nothing f**ked."

 

[Kramerica Industries]

I think it's time to relax a bit and chant the mantra: "Nothing f**ked Dude, nothing f**ked."

Yo, quit talking about me.

 

[Il Drago]

According to La Repubblica, Inter players, coaching staff, directors and employees refused Zhang request to give up two months wages.

 

[.h.]

If true, I'm extremely disappointed in the players. Apparently they didnt even agree to 2 months deferral.

This is extremely selfish, arrogant and narrow-minded behaviour from them.

 

[brehme1989]

They deserve to reject this request. And Zhang deserves to have this request rejected.

 

[wera]

They probably all want them to sell already.

 

[ADRossi]

If true, I'm extremely disappointed in the players. Apparently they didnt even agree to 2 months deferral.

This is extremely selfish, arrogant and narrow-minded behaviour from them.

I don't understand this argument. When football clubs do well, do we hear stories about owners taking their extra profits and giving a share of them to the players? Why should players need to help owners cover their losses?

These people are buying football clubs as investments. There's a risk associated with any investment, and you need to be prepared to suffer the losses that come from this risk.

If these clubs were like AFC Wimbledon (fan-owned to the core) I would feel differently.

The Zhangs are billionaires. They have the money needed to cover their losses. This is simply a matter of them trying to place nice with the Chinese government. If they can't afford to handle the losses associated with the consequence of these actions, then they're simply not fit to own a football club.

 

[.h.]

I don't understand this argument. When football clubs do well, do we hear stories about owners taking their extra profits and giving a share of them to the players? Why should players need to help owners cover their losses?

These people are buying football clubs as investments. There's a risk associated with any investment, and you need to be prepared to suffer the losses that come from this risk.

If these clubs were like AFC Wimbledon (fan-owned to the core) I would feel differently.

The Zhangs are billionaires. They have the money needed to cover their losses. This is simply a matter of them trying to place nice with the Chinese government. If they can't afford to handle the losses associated with the consequence of these actions, then they're simply not fit to own a football club.

Yes, let's let the club go bankrupt on a moral stance?


Irrespective of this argument, to be honest, look at what other clubs have done. RM, Barca on 2-3 year interest free loans from their players. Juve unilaterally deferred 3 months of salary. Roma doing the same.

A number of those clubs mentioned have owners far richer than our owners, without the chinese cashflow problems either.

There are plenty of clubs where players have taken sacrifices. Why do our players feel like they dont have to?


Fuck, there are plenty of BUSINESSES where people have had 20% pay cuts. The sheer arrogance of our team to put themselves above it tbh.

>50% of people in the UK have had their salaries reduced or been furloughed because of COVID. These footballers need to get their head out of their ass.



You guys realise that now we're probably going to have to sell a major player (or two) this window, and we'll have a net negative transfer window (let alone net 0)?

If COVID prevents us from selling season tickets, there's a real chance we'll have to sell 3-4 key players next season, just to cover debts. We have 250? million in bonds coming due in Dec 2022. We are NOT in a healthy state, and we've lost something like 200-250mil in 2 seasons. That's ignoring any potential impact on next season if we dont sell season tickets.


All because our players wont sacrifice 16% of their salary in an era when many people in the world are suffering.



I think it's undefendable personally. You talk about business risk as an owner? There's a non-zero chance Suning will have to let Inter fold, if cashflow doesnt return back to football and let us sell key players. We aren't in negative equity like Jiangsu were, but our valuation and equity will be plummeting QUICKLY now.

 

[brehme1989]

Covid hit LAST YEAR. The league was suspended 14 months ago. The ownership told the players NO CUTS.

14 months later, when the pandemic is coming to an end (hopefully) in Europe, you want the players to agree something that they were promised would not happen, when things seem to get better and right after winning the league? Come on, the narrative gets old.

Suning was too late to ask for this paycut, it's over. There's no reason for the players to accept this. They already agreed on various payment postponements.

This isn't some playground, they knew very well that this would have taken long enough, they knew they'd lose money... Sure, they underestimated the 'attack' from the Chinese government on their domestic investments, but that was already a thing during the Covid break last season!

 

[.h.]

Covid hit LAST YEAR. The league was suspended 14 months ago. The ownership told the players NO CUTS.

14 months later, when the pandemic is coming to an end (hopefully) in Europe, you want the players to agree something that they were promised would not happen, when things seem to get better and right after winning the league? Come on, the narrative gets old.

Suning was too late to ask for this paycut, it's over. There's no reason for the players to accept this. They already agreed on various payment postponements.

This isn't some playground, they knew very well that this would have taken long enough, they knew they'd lose money... Sure, they underestimated the 'attack' from the Chinese government on their domestic investments, but that was already a thing during the Covid break last season!

The main financial impact of Covid was this season for us. Last season was mostly mitigated (deferred payments hurt, but our result last year is maybe -5m because of Covid. The actual pro forma result was heavily driven by lost sponsorship revenues, NOT COVID).


Expect to see other big clubs take similar steps now the season is coming to a close, especially as they finalise financial positions.

And if there are no season tickets this summer, or limited sales, it's going to be a fucking bloodbath.


We need like 200-250mil in Dec 22 cash to redeem the bonds. I have no idea what our loans situation is right now. Even the 300m loan from Suning if converted to equity only has a modest impact on our financial position, we've lost >200m in the last 18 months, and we were already cutting it fine financially before Covid.

 

[CafeCordoba]

Hard to take sides in this but if they can't accept even the deferral, I am disappointed too. All the big clubs having financial issues have deferred salary payments. We made -100m€ last fiscal year and now it's predicted to be -130m€, wouldn't be surprised it's even more.

Zhang will definitely force sales if anyone doesn't give him back anything. Which is a damn shame because obviously we can sell only those who are getting offers which are the likes of Lautaro, Barella, Bastoni, Lukaku. Not the Brozovic, Eriksen etc department.

 

[.h.]

Hard to take sides in this but if they can't accept even the deferral, I am disappointed too. All the big clubs having financial issues have deferred salary payments. We made -100m€ last fiscal year and now it's predicted to be -130m€, wouldn't be surprised it's even more.

Zhang will definitely force sales if anyone doesn't give him back anything. Which is a damn shame because obviously we can sell only those who are getting offers which are the likes of Lautaro, Barella, Bastoni, Lukaku. Not the Brozovic, Eriksen etc department.

and our players are willing to break up an inter side over a couple months of *deferred* salary. If that is true that's the worst bit. I can see arguments about not getting pay cuts (though I still massively disagree with them), but not even letting us defer?


This winning cycle is broken by our players, not our management. Let's be clear about that.

 

[TheNetworkZ]

Marotta did mention it was optional, perhaps with good reason?

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[.h.]

cuz legally it is optional?

but its the difference between taking a wage cut, or not, and selling Brozovic and Eriksen (probably/potentially), without the money to replace them.

I know wht I'd prefer. The midfield that isnt Sensi-Barella-Gagliardini, with Sensi injured for half the season.

Our financial health is highly dependent on being able to sell season tickets again. If we can, we probably need to reduce costs by 60-70mil on a recurring basis to normalise our situation in the longer term. It's not actually 'that' unreasonable to accomplish, but that takes us to net neutral, and DOESNT give us the money we need to pay off loans/debts/bonds/etc.

And there are no accounting tricks with bonds. You either make the payment, refinance, or default.

 

[CafeCordoba]

Deferral of salary payment of two months is really not a big deal. If they are getting paid Jan-April salaries on May, then May-June salaries two years from now, what's the fucking issue? What you basically lose is the profits you would make when investing those 2 month salaries during the 2 years time. Yes, it's something but come on, it's not some HUGE money. Guaranteed you can make like maybe 5% in the current market (and that's not really guaranteed, really 100% sure is maybe 2-3% profit?).

I understand they must be fed up with this constant salary payment deferrals but the issue is critical atm. Conte, Marotta, player sales, all might be depending on this thing. Maybe not, but 25-30m€ might be crucial at this point. And still, just a deferral, not cut.

 

[.h.]

Deferral of salary payment of two months is really not a big deal. If they are getting paid Jan-April salaries on May, then May-June salaries two years from now, what's the fucking issue? What you basically lose is the profits you would make when investing those 2 month salaries during the 2 years time. Yes, it's something but come on, it's not some HUGE money. Guaranteed you can make like maybe 5% in the current market (and that's not really guaranteed, really 100% sure is maybe 2-3% profit?).

I understand they must be fed up with this constant salary payment deferrals but the issue is critical atm. Conte, Marotta, player sales, all might be depending on this thing. Maybe not, but 25-30m€ might be crucial at this point. And still, just a deferral, not cut.

exaactly

 

[Il Drago]

We need to take into consideration we're talking about the wages of November and December that were already deferred earlier in the season and they need to be paid till the end of May in order to get a license for next championship. Could there be a further deferral? No idea if FIGC rules allow it. It sounds like this option wasn't even discussed.

 

[.h.]

so it depends. There's deferral of payment, and deferral of liability. Earlier this season we deferred payment - but it makes no difference to the financial stataement for the year. I'm fairly confident what was discussed here is deferral of liability - e.g. we arent paying you salary for May/June, but you'll get double salary in Aug/Sept, so it chanages financial year.

This means our financial loss for the year wont be as bad.