Inter's Financial Situation

[CafeCordoba]

They were fake sponsorships, Zhang connections in China, maybe quid pro quo or probably even Zhangs shifting their own money through those companies to Inter. But they didn't even get all the money moving to Inter.

We have made huge steps but the issue is, it's been only piling cash and taking debt all the while everything is totally dependent on CCP. That can't be a real plan. But that was the plan and here we are.

Cost-cutting would be relentless with a fund, but the plan would be clear. We would focus more on younger players. Now we are trying to do both, cost-cutting while trying to win everything. AND THAT drives the management and the coach to do things we do. We sign veterans because that's what the management and the coach knows (how to get success, in short term, with limited funds). Total inability to long-term planning because of the ownership.

Doing something stupid doesn't make it less stupid if someone else does it too. Stop defending the cryptobro BS please. We just happened to forgot on insisting them paying in advance? Or maybe there was not a deal to be made with such conditions? You know, maybe because of the total scammy nature of the whole business. In the end all the cryptocompanies are there because there was a cryptoboom and VC money wanted a piece of it. But the truth is there is no real business because cryptos do not solve any problem. The cryptoboom was based purely on people going apeshit in the new tulip mania. But enough with the cryptos.

 

[.h.]

But we do have a plan - we've reduced our salaries by a substantial amount while, imho, significantly improving the quality of the squad.

We've signed 1 veteran this year in Mkhi, and he was pretty damn cheap + potentially includes a break clause. No issue with that. With Frog, Vecino, Kolarov, Vidal, Sanchez, etc leaving this summer, we're actually putting ourselves in a pretty solid position. We'll inevitably need a shit old CB to come and fill in but thats okay.


Hopefully with reduction in costs, and starting to generate some more revenue, we can get to cost neutrality

 

[CafeCordoba]

And rolling the 400m€ debt when it's due, probably getting the interest rate higher like last time? How are we generating more revenue when we can't even get money from our current sponsors? It looks it's backwards at the moment.

I so hope this whole thing just falls on Oaktree's lap and we get rid of the Chinese for once.

 

[Adriano@10]

They were fake sponsorships, Zhang connections in China, maybe quid pro quo or probably even Zhangs shifting their own money through those companies to Inter. But they didn't even get all the money moving to Inter.

We have made huge steps but the issue is, it's been only piling cash and taking debt all the while everything is totally dependent on CCP. That can't be a real plan. But that was the plan and here we are.

Cost-cutting would be relentless with a fund, but the plan would be clear. We would focus more on younger players. Now we are trying to do both, cost-cutting while trying to win everything. AND THAT drives the management and the coach to do things we do. We sign veterans because that's what the management and the coach knows (how to get success, in short term, with limited funds). Total inability to long-term planning because of the ownership.

Doing something stupid doesn't make it less stupid if someone else does it too. Stop defending the cryptobro BS please. We just happened to forgot on insisting them paying in advance? Or maybe there was not a deal to be made with such conditions? You know, maybe because of the total scammy nature of the whole business. In the end all the cryptocompanies are there because there was a cryptoboom and VC money wanted a piece of it. But the truth is there is no real business because cryptos do not solve any problem. The cryptoboom was based purely on people going apeshit in the new tulip mania. But enough with the cryptos.

I honestly think the plan is cost cutting while staying relevant.. the problem here is if you cut costs to fast/much you might miss CL and then the cost cutting is not good for much (see tohir)

Well as long as the money arrived who cares? wether it was sponsorships from zhangs friends also would not be that unusual...
Again i m not sure the no longterm plan is a fair critique when Covid and a sudden change in chinese policy is one of the main reasons we re in this mess...
Like the moment covid hit and our revenue as well as the one of suning got slashed what ever long term plan we had was no longer valid cause we were in survival mode and the focus was on keeping the lights on.
Dont get me wrong the zhangs made many mistakes and are far from perfect and i d like to have a diffrent owner to i just think some of you are gonna wake up to a harsh reality if a vulture fund gets involved.

Brother i hate the whole crypto scene and am quite vocal about it.... I m not saying we forgot to insist on them paying upfront it s that i thought we would not be dumb enough to sign a deal with em without paying upfront. Especially since this has been the norm for many of these crypto sponsorships especially in the US.
So that is blatantly stupid and i fully agree with you.

Again dont get me wrong i want the zhangs to sell us i just take issue with saying they did nothing for us. That being said it is fair to say that the next steps are crucial and they could very well fuck up all the good they did for us in the next 1/2 seasons.

 

[.h.]

Progress in the CL, increased matchday attendence, afaik Suning are still paying their contractual sponsorships to Inter, too

Suning bought Inter in June 2016 - our revenue then was 164.8 million. In 2020-2021, our revenue was 330.9 million.


I'd say that's not bad. We need to get to the R16 on a consistent basis, pushing even beyond that if possible. Remember, we've got a pretty steady core of the team now hopefully - amortisation bills will reduce as Skriniar, Bastoni, Barella, etc renew. We just need to get rid of the mistakes like Dzeko, Correa, Lazaro, Dalbert, etc, and start investing that money into players of the Asllani/Bellanova tier who can push on for Inter.



In 2016 (14-15 season), we made 22.2m from matchday, 97.2m from broadcasting, 45.4m from commercial.

In 2020-2021 (bearing in mind this will have COVID impact too e.g. matchday and broadcasting), it was 216mil from broadcast revenue, 113mil from commercial, and 2.2mil (stadia closure) from matchday - the last complete season before COVID we made 51mil from matchday, I'd expect this figure to push on to more like 65-85mil once everything is fully back to normal. "Implies" to me that we're probably not far off breaking the 350-400mil mark (I assume some of the 20-21 figure was inflated with broadcast and commercial slippage from 19/20, dont know if they did a proper like-for-like or not)

 

[Gal]

Still somehow we manage to loose a 100m euro every year.

 

[Corrode]

Still somehow we manage to loose a 100m euro every year.

zhang/suning can't create real money for the team so he create more debt from his "money laundering" at europe

 

[.h.]

Still somehow we manage to loose a 100m euro every year.

Because we spend fucking loads on players and wages. It's precisely BECAUSE they support inter so much that we lose this money. If you didn't wanna lose 100m we would basically have no Skriniar barella Bastoni etc.

 

[andrei]

Because we spend fucking loads on players and wages. It's precisely BECAUSE they support inter so much that we lose this money. If you didn't wanna lose 100m we would basically have no Skriniar barella Bastoni etc.

This! It doesn`t matter how much we hate Zhang now, I just cannot deny that they spend a lot of money over the years.
What are our most beloved players: Skriniar, Bastoni, Brozo, Barella, Lautaro. What did they have in common? All of them came as prospects from inferior leagues/teams and developed here. We can talk all the day how we don`t give a chance to youngster, how we rely on fossils and so on! But if you look closely, our spine is made from players who we developed. Dumfries could be in the same category. I let Correa out, because I still believe he could be that 3rd striker who could help, even with his putrid last season.

But there is a shadow over this story. For every of those 5 names there are also Joao Mario, Barbosa, Gags, Vecino, Dalbert, Lazaro, Sensi. I let Nainggolan out because he was already 30yo. Sensi was not a problem as a talent (he has it) but the fitness and reliability is a nightmare.
The big fucking elephant in the room is the ratio. More than 50% of our bets were unsuccessful (yes even Vecino and Gags) or straight desasters. Here is the main cause of our financial problems. Would have been this successful ratio somewhere 70% possibly we were not in such shit. The problem lies ahead: we need better scouting, more than anything else.

We could spit on Suning all the day but the willingness and the money for transfers were there. But the scouting was a desaster.

 

[.h.]

Tbh 50% is probably about in line for clubs. Fergie used to say that if you made 5 signings and 3 worked out you'd done really well.

The problem I have is that we were extending contracts of bad players to reduce amortisation, giving unnecessarily long contracts to spread salaries over a time period, and not willing to take a loss on players we didn't need

The latter point is where COVID has actually helped, we swallowed losses for JM and nainggolan etc

 

[CafeCordoba]

And now we swallow the losses of Sanchez and Vidal. Their golden handshakes will be on previous year's results as costs. So there will be some shit again when the books are closed.

This move will allow this financial year to look good on wage side.

 

[.h.]

Yeah, the golden handshakes suck a little but theres no major amortisation at least. Slowly but surely moving in the right direction at least.

 

[Gal]

Because we spend fucking loads on players and wages. It's precisely BECAUSE they support inter so much that we lose this money. If you didn't wanna lose 100m we would basically have no Skriniar barella Bastoni etc.

Next summer we will lose 1-2 of them anyway so much is clear, because the club spent more then it can afford. Next summer the club need to find a gain of 60m euro, but to do so with the money already spend in this summer and what is already agreed on in the next summer market those figures are probably more like 100m euros. That means either Martinez or two of Barella, Bastoni, Dumfries or Skriniar (if his contract is extended) needs to be sold.

When all that is done, the club will most likely need to repeat that process again the following summers and the rest will be gone by latest in the summer of 2025 because the financial problem remains.

There are tons of players who have contracts run out next summer, most aren’t getting it extended because they aren’t good enough and because of too high wage. Hardly any of the remaining then the ones mentioned are worth very much, if Inter get 5-8m for them pr. piece they should praise themselves lucky! However taken into account that Marotta and co. has been bad at selling those players it’s more likely they won’t get anything from that, so it’s high valuable players left.

Yeah it’s good the club get rid off Vidal and Sanchez and cut about half of their total wages from the monthly wage bill… but the club probably should never have handed them so long contract to begin with. When players are at that age you hand them one year contract no more.

 

[CafeCordoba]

You hand them one year contract and you don't sign the guys at all. The players might have the power in the negotiations too.

However it's an interesting point how our squad is looking next summer. D'Ambrosio, Dzeko, De Vrij have contracts expiring. I assume we will extend Skriniar no matter what given he stays now.

 

[Gal]

You hand them one year contract and you don't sign the guys at all. The players might have the power in the negotiations too.

However it's an interesting point how our squad is looking next summer. D'Ambrosio, Dzeko, De Vrij have contracts expiring. I assume we will extend Skriniar no matter what given he stays now.

That would have been even better, it’s not like Sanchez, Vidal, Kolarov, Dzeko or Darmian where massive success anyway, although Dzeko did have a passable half season and Darmian a few games here and there.

Also most of these guys required a wage we actually could not afford, so signing them on lengthy contract was a bad decision.

 

[CafeCordoba]

Sanchez and Dzeko were definitely useful. Vidal was a failed one when takin this wage into account but he was Conte request who brought us Scudetto so that had to be done.

 

[MKSerbia]

I don´t care for preseason results, but what a sad club we became in the last 24 months regarding the finances. Every next year with this owners will be the same. We need to sell players, every other team knows that, we buy only cheap ones or bring them on loan and then if we have success with some of them, good because those who show something we will easily sell them later. Current players are anxious because they don´t know what is their future and also the future of the club. Even the main sponsor is not respecting the contract.

If the situation is the same in summer 2023, i can easily see Lautaro, Barella and Bastoni requesting transfers out if the club not sell them first.

OK, we don´t have money for 2 years now, we can´t sign any already formed players who have a quality, but this situation where we need to sell players is humiliating. How AC Milan can keep Leao for example? Pathetic.

 

[.h.]

They spend much less than we do. We have an extremely high amortisation cost in comparison and iirc pay more in wages too stgnificantly.

 

[Corrode]

thanks for trust this current and future of Internazionale Milano team on fossil players, soon this team will turn into fossil too.

 

[Puma]

I would venture to say that it already has. Inter's history and the past counts a great deal more than the present.

And the honest truth of the matter is that as a club, we are living from financial year to financial year and nothing more than that.

The players, their skills and talents and attachment to the club and its colours count for absolutely nothing. The only thing that matters is money and figures and how much the owners can get for a given player.

Competing until the last day of the season to win the Championship has lulled management into thinking that we are competitive and can go the distance again this season. We will still be spread very thin this season. The only difference is that it will be in different sections of the field. Perhaps we are stronger up front with the arrival of Lukaku but Sanchez has gone and the likes of Correa and Dzeko can not play.

In midfield we got Asllani and Miki: we are essentially relying on a 20 year old and Roma reject to make the difference.

And at the back, we are relying on our usual trio when one of them is in serious decline and the other could well be sold by the end of the transfer window.

As for our keepers, nothing is going to change there. It does not matter how shaky and uncertain Handanovic is, Onana will not start playing until season 2023-2024.