Inter's Financial Situation

Il Drago

Moderator
Moderator
Joined
Dec 21, 2015
Messages
15,961
Likes
16,948
Favorite Player
Wesley Sneijder
Best Football Poster
Yeah. Probably. Sorry for pressing the panic button guys. :palm:
 

CafeCordoba

Moderator
Moderator
Joined
Mar 7, 2004
Messages
31,021
Likes
6,541
Favorite Player
Bar, Skr, Bas
10 years of FIF
Over 6% sounds pretty bad still as it was under 5% previously.

We need to sell 1-2 starters next summer too is probably the doom and gloom scenario.
 

.h.

Part time Lazarus
La Grande Inter
Joined
Jun 8, 2005
Messages
26,505
Likes
3,536
Favorite Player
Inter1-0Wanda
Old username
browha
Forum Supporter
10 years of FIF
6% considering circumstances is reasonable.
 

CafeCordoba

Moderator
Moderator
Joined
Mar 7, 2004
Messages
31,021
Likes
6,541
Favorite Player
Bar, Skr, Bas
10 years of FIF
Yeah it seems these crypto things are falling down as we speak and it's interesting to see can we survive this season before socios.com goes down aswell. They've poured shittons of money all over the place in sports.

Interesting to see also how things go with Zytara who's suppose to be our main sponsor after this season.
 

brehme1989

La Grande Inter
La Grande Inter
Joined
Jan 17, 2005
Messages
29,323
Likes
8,392
10 years of FIF
Nostradamus
Russia central bank wants to ban cryptocurrencies. Debates regulation, but prefers total ban.

The Fed in the USA is debating what to do (punitively) to stable coins, especially Tether, which control Bitcoin prices and pretty much that should crash the entire system if not handled with care. And that's why it's taking too long, one is that it may collapse the system within hours, the other is that they're worried that a new one will just pop out of nowhere and replicate the stablecoin business.

The largest crypto exchange platform has been banned by the UK and has limited services in Germany, Italy and the Netherlands after they suspended it themselves due to regulatory scrutiny. Ironically, Lazio has Binance as their main sponsor!

El Salvador president Bukele trades Bitcoin with his country's money when he's shitting on the toilet. I kid you not!

Crypto is used by sanctioned governments and people to avoid said sanctions. USA does not like that.


They're all part of one system as much as they cry about decentralization. If the big boys are hit, everything else will die with it. Including our 'Socios' deal. And there are no guarantees. I really wish we don't have this sponsor next season.


Also important to know that Serie A has a deal with Crypto dot com, same guys that now have the name of the Los Angeles Lakers arena (formerly known as Staples Center). They're all shady, unregulated businesses. I still do not understand how all these guys were approved when a gambling website falls under too much scrutiny when it comes to marketing to the public. There are regulations in place for gambling and investing marketing practices and the Crypto companies fall somewhere in between, yet no one says anything. The risk of collapse means we lose a huge amount of sponsorship money if we're still entangled in this world. We're essentially risking getting 20-25m shady money instead of 15m safe money. That's one Hakan Calhanoglu year. Is it worth the risk? I don't know, we'll see when it ends.
 

.h.

Part time Lazarus
La Grande Inter
Joined
Jun 8, 2005
Messages
26,505
Likes
3,536
Favorite Player
Inter1-0Wanda
Old username
browha
Forum Supporter
10 years of FIF
Gotta agree, this risky money isn't worth it. I hope they are being forced to pay in credit rather than arrears
 

Il Drago

Moderator
Moderator
Joined
Dec 21, 2015
Messages
15,961
Likes
16,948
Favorite Player
Wesley Sneijder
Best Football Poster

Inter Milan’s Debt Costs Soar​

(Bloomberg) --

Italian football club FC Internazionale Milano SpA may pay considerably more than its existing interest rate for a new bond, in a sign of the market’s rising unease with risky credits.

The club, which suffered a rating downgrade deeper into junk since it last sold debt in 2017, may pay as much as 7% for a 415 million-euro bond ($464 million), according to people familiar with the deal. The new bond will refinance an outstanding debt that pays just 4.875%. The investor meetings which were arranged by Goldman Sachs concluded on Wednesday and the final price on the bond is yet to be set.

Inter Milan needs to keep raising cash to fund operations while its majority shareholder, Suning Holdings Group Co., attempts to bring in more financial backers after securing a loan of 275 million euros from Oaktree Capital in May 2021. The club is opting to raise debt on the public markets, unlike its rivals Barcelona, Real Madrid and Manchester City, which issued loans and privately placed bonds even though they typically require higher coupons.

Representatives for Inter weren’t immediately available for comment.

Global markets are in a risk-off mood, following the comments by the U.S. Federal Reserve signaling an interest-rate hike as early as March. The cost of insuring European junk-rated debt jumped as much as 14 basis points on Thursday morning as investors retreated from buying risky assets.

But even before the Fed’s meeting, the unofficial guidance investors saw in the marketing process was in the low-to-mid 6% range, because the market sought compensation for the club’s financial risks. That pricing, however, would’ve been significantly higher than the 4.5% average for comparably-rated -- single B -- companies, according to data compiled by Bloomberg.

The higher costs could hurt the group’s balance sheet as it attempts to improve its capital structure following the damaging impact of Covid-19 restrictions on the club’s finances.

Investors noted the limited collateral that the company can pledge as assets. They own the training complex but not the headquarters, or the stadium, said Mark Benbow a high-yield fund manager at Aegon Asset Management, who passed on buying the new bonds.

“It’s tricky because the business is run for trophies and not cashflow,” he said.

Inter Milan recorded the highest-ever loss by an Italian football club of 245.6 million euros in 2020/2021, as noted by KPMG’s Football Benchmark, the year it won the domestic league.

 

CafeCordoba

Moderator
Moderator
Joined
Mar 7, 2004
Messages
31,021
Likes
6,541
Favorite Player
Bar, Skr, Bas
10 years of FIF
Fuck this shit. With 7% interest, that's 30m€ per year. I consider we don't actually pay that loan, only interests, it's gonna be 30m€ every year for the next 5 years.

4.5% is around 18m€ so this is over 10m€ more per year.
 

Il Drago

Moderator
Moderator
Joined
Dec 21, 2015
Messages
15,961
Likes
16,948
Favorite Player
Wesley Sneijder
Best Football Poster

Does this site have correct number?
I think so. Italian media haven't reported anything for this season but based on Gazzetta report for 2020/21 their numbers seem accurate.

eir0fmw5q9s51.png
 

.h.

Part time Lazarus
La Grande Inter
Joined
Jun 8, 2005
Messages
26,505
Likes
3,536
Favorite Player
Inter1-0Wanda
Old username
browha
Forum Supporter
10 years of FIF
Fuck this shit. With 7% interest, that's 30m€ per year. I consider we don't actually pay that loan, only interests, it's gonna be 30m€ every year for the next 5 years.

4.5% is around 18m€ so this is over 10m€ more per year.
Itll be bonds so we won't pay any capital until due date
 

brehme1989

La Grande Inter
La Grande Inter
Joined
Jan 17, 2005
Messages
29,323
Likes
8,392
10 years of FIF
Nostradamus
7% sounds right.

I'm guessing it'll be between somewhere 6.5% and 7%.
 
  • Like
Reactions: .h.

.h.

Part time Lazarus
La Grande Inter
Joined
Jun 8, 2005
Messages
26,505
Likes
3,536
Favorite Player
Inter1-0Wanda
Old username
browha
Forum Supporter
10 years of FIF

.h.

Part time Lazarus
La Grande Inter
Joined
Jun 8, 2005
Messages
26,505
Likes
3,536
Favorite Player
Inter1-0Wanda
Old username
browha
Forum Supporter
10 years of FIF
Kind of. The financing gives us the safety of not having to go bankrupt when the next debt rounds are due, but we are paying more money in interest than before. It isn't unexpected though and basically gives us a few years of security during which time we hope our CL performances improve, stadium revenues return, Sunning can financially recover, league commercial deals in general increase, and we get new sponsors


Which isn't unreasonable
 
Top