Inter's Financial Situation

[Adriano@10]

DIGITALBITS DEAL FAILURE RISKS REDUCING INTER TO JUNK BOND STATUS

#showmethemoney

This might be good news for everybody who wishes the zhangs sell fast so everybody.....
Rumor has been floating around that steven is searching for new loans in order to ot have to sell, i doubt he ll be able to do that if we re junk rated. Or lets say i doubt his dad will allow him to take on such a huge fucken risk...

Last but not least i still cant believe how blue eyed we did that fucken deal with crypto bros especially after already having bad experiences last season. Like initially i was pissed but looking at some public deals that other sports clubs did with crypto bros i got a bit calmer as most of them asked for payments upfront and they got some other assurances which made non payment extremely expensive for the crypto cos....

Apparently we did nothing like this and we just agreed with who ever yelled the highest fucking number at us. Quite sure if fif would have offered to pay 20 mio/ season Fif would have been written on our shirts for the first half of this season. Very obvious that 0 due dilligence went into signing with these fucken fraudsters.


Also side note just fucken sell the club zhangs at this point it will take nothing short of a miracle to not file for bankruptcy f the zhangs stay at the helm much longer.

 

[Stefan]

You can still get loans with that rating just at higher interest rates. The rates steve pays is already quite high a fraction of a percentage point higher won't change much.

 

[Adriano@10]

You can still get loans with that rating just at higher interest rates. The rates steve pays is already quite high a fraction of a percentage point higher won't change much.

Uhhhh please check the real yield diff in bbb rated bonds vs junk rated bonds bbb (lowest investment grade) is around 5.5% atm lowest high yield/junk is at 7.3...
Would not call that a fraction of a percentage point higher..
Also us struggling to pay back our debt when we are bbb rated does not sound like a sound financial decision to top that off with even more debt but this time junk debt.
Yes will find somebody to provide us the money even if we re junk rated but it wont last to long till we have to default on that or till we have to pull another rabbit out of a hat in order to not file for bankruptcy.
Also last time we sold bonds we sold them at a coupon off 6.75% and that was in early 2022 back than we were B rated and average B yield was around 4.5%...
on top of that the risk free was still 0 or negative back then.
Refinancing now is gonna be expensive and it s gonna be a lot more expensive then it was the last time around.

 

[CafeCordoba]

Yeah, it's not just fraction of a percentage point higher. And that means millions more per year.

 

[Stefan]

Uhhhh please check the real yield diff in bbb rated bonds vs junk rated bonds bbb (lowest investment grade) is around 5.5% atm lowest high yield/junk is at 7.3...
Would not call that a fraction of a percentage point higher..
Also us struggling to pay back our debt when we are bbb rated does not sound like a sound financial decision to top that off with even more debt but this time junk debt.
Yes will find somebody to provide us the money even if we re junk rated but it wont last to long till we have to default on that or till we have to pull another rabbit out of a hat in order to not file for bankruptcy.
Also last time we sold bonds we sold them at a coupon off 6.75% and that was in early 2022 back than we were B rated and average B yield was around 4.5%...
on top of that the risk free was still 0 or negative back then.
Refinancing now is gonna be expensive and it s gonna be a lot more expensive then it was the last time around.

Reports I have read has the difference it would make as 0.25% interest. Even if they are wrong and it's 1-2 % instead for me it wouldn't make that much of a difference to force Zhang to sell. If Jindong or Stevie wants to sell/are forced to sell they will. But it won't be cause of a few interest % points.

 

[Forzanerazzurri]

This might be good news for everybody who wishes the zhangs sell fast so everybody.....
Rumor has been floating around that steven is searching for new loans in order to ot have to sell, i doubt he ll be able to do that if we re junk rated. Or lets say i doubt his dad will allow him to take on such a huge fucken risk...

Last but not least i still cant believe how blue eyed we did that fucken deal with crypto bros especially after already having bad experiences last season. Like initially i was pissed but looking at some public deals that other sports clubs did with crypto bros i got a bit calmer as most of them asked for payments upfront and they got some other assurances which made non payment extremely expensive for the crypto cos....

Apparently we did nothing like this and we just agreed with who ever yelled the highest fucking number at us. Quite sure if fif would have offered to pay 20 mio/ season Fif would have been written on our shirts for the first half of this season. Very obvious that 0 due dilligence went into signing with these fucken fraudsters.


Also side note just fucken sell the club zhangs at this point it will take nothing short of a miracle to not file for bankruptcy f the zhangs stay at the helm much longer.

This doesn't mean much. Most of these football teams bond ratings should be junk. None of these clubs are profitable. Terrible investments.

 

[DARi0]

Former Inter CEO Ernesto Paolillo expects that it is still only a matter of time before the current owners of the Nerazzurri sell the club:

“I think that a sale is inevitable,” he argued.

“If we look at the size of the company’s debt, and especially the interest rates, it will be difficult to continue on under these conditions without a major refinancing, which at the moment Zhang is unable to do,” he explained.

or they can just keep on re-financing [?]

 

[.h.]

50m tax bill due by 22 dec. This could be the thing that forces their hand.

 

[brehme1989]

Problem is that they don't understand that they do not have the upper hand.

They come from a mindset where owning the shares matter more than the underlying worth of the organization due to assets, cash flows etc. And I'm not sure if they care about what a bunch of Italians/Europeans are saying about them. Their only business focus is China and a few neighboring countries, while Chinese foreign relations with European countries aren't really a priority at the time.

 

[Helenio Herrera]

I fully expect Oaktree to seize the club at this point. Might not be the worst thing in the world, but as I previously said I don't expect us to stop hemorrhaging money and/or stars until the summer of 2024. If we can keep the title winning core intact while getting CL money I'd call it a success.

Most of our key players have a contract until 2026 -- we should focus on renewing Skriniar and Bastoni. I'm assuming we'll be able to having not sold them despite offers around ~€70m.

CL qualification should be easy enough this season, but it'll be much harder in 2023-24. Onana will remain a question mark, we'll need to revamp the defense, find a creative midfielder and replace Lukaku (& maybe Dumfries as well).

 

[DARi0]

JUVENTUS, INTER AND MILAN POCKET FIFA MONEY FROM WORLD CUP

Inter, Juventus and Milan will receive money from FIFA for ‘loaning’ them to their nations at the 2022 World Cup in Qatar.

There will be plenty of Serie A representation in the last two games of the tournament on Sunday.

Croatia include players from Atalanta, Torino and Inter, while Morocco have Fiorentina midfielder Sofyan Amrabat and Sampdoria’s Abdelhamid Sabiri.

In the Final, Argentina have representatives from Juventus, Inter and Roma, with France providing interest for Milan and Juve fans.

FIFA set up a Club Benefits Programme, which gives teams compensation of sorts for letting their stars take part in the competition, especially important when it splits the season in two like this rare November-December edition.

A grand total of $209m was put into the pot and will be divided between the clubs, based on how many players and how often they played.

According to Calcio e Finanza, Juventus are the biggest-earning Italian side with over $2.8m thanks to 18 players involved, including those like Matthijs de Ligt, Rodrigo Bentancur and Denis Zakaria who have since left, due to the way the figures are calculated.

Inter will receive almost $1.8m for their 11 players who were used in Qatar.

Milan are due to pocket over $1.4m for the use of their seven players, especially as Theo Hernandez has made it to the World Cup Final.

Excellent. FIFA took the bribe to host it in Qatar mid-season and then redistributed part of the money to shut clubs up.

 

[brehme1989]

It's been a policy since 2010. Ironically, since they started getting bribes for hosting so you're not far off

 

[Adriano@10]

It's been a policy since 2010. Ironically, since they started getting bribes for hosting so you're not far off

wait was this not some kind of legal battle or atleast done when clubs were protesting that they should get compensation?

Also to get back on topic that new loan steve is reportedly searching is that to refinance our entire debt or just another bridge loan so we can survive on the short term?

 

[IM21]

Ebay is our new sleeve sponsor

https://twitter.com/i/web/status/1604876679490416651

 

[Helenio Herrera]

I hate sleeve sponsors especially off-color ones.

 

[ADRossi]

Ebay is our new sleeve sponsor

https://twitter.com/i/web/status/1604876679490416651

This dollar amount seems low?

 

[William]

Oh dear well at least it ain’t crypto…

 

[CafeCordoba]

This dollar amount seems low?

It's okay, it's a sleeve sponsorship. The figure is the same we had last season with DigitalShits. And this new one was negotiated in a forced situation, mid-season. So I'd call it a good deal.

Issue is the main sponsorship deal. We should reach Milan figures, ie. 30m€ but I fear we ain't getting there with the mid-season negotiations as the counterparties know our situation.

 

[K.I.]

How much was Pirelli paying? To be honest if they were paying 0 i would bring them back, I still think Provera owns shares in Inter still?

 

[Forzanerazzurri]

At least it's a company with real money