Erick Thohir

[Pimpin]

I was doing fieldwork in China in 2008, and still a keen China watcher.

In China threre is a thing called Wage repression. Money earned from export is put into reserve, then finance though foreign loan (to the US), or domestic investment into infrastructure. In 2008 when the mortgage crisis and shady securitization system triggered the huge financial ourbreak, China put everything in infrastructure as the CCP did not have foreign destinations for their money. Parking ur money in $ is always a safe option - the Economist says $$$ has an exorbitant privilege due to the nature of American debt-fuelled consumption econmy.

The government cant increase Wage because repression policy sustains China competitive advantage - cheap labour (they are restructuring the economy but it takes time). Also, the Communists don’t want a large emergence of a “middle class” - the bourgeois as it would bring about more pressure on the government as well as a possibility of a novel counter-hegemonic ideology. The problem is that infrastructure has hit its limit while export is slowing down. Not only because of the 2008 financial recession but also because of Chinese low position on the ladder of creative industry. In short, the $ inflows slows down.

Meanwhile, Wealth was transfered from Household to the state as interest is set lower than inflation rates. People aint stupid, they keep their savings rather than put them into the central bank. Chinese domestic economy is way more capitalistic than many of you may think, people have channels to make money and to finance elsewhere internationally. Thus, it is understandable when The CCP restricts the outflow of $ leading to our, Inter, current situation, and to the situations that Universe observed. Especially consider the fact that big corporations in China benefited a lot from official connections AND the state putting up protective barriers against foreign competition. Who Jack Ma would be, if Amazon had been allowed to infiltrate Chinese market.

it feels so good to see an economic literate on fif, so good

 

[ADRossi]

it feels so good to see an economic literate on fif, so good

I know right? Now I don't have to read your posts anymore

 

[Universe]

Never heard about these Chinese laws. What a pain in the ass. It's bad enough Chinese money has made buying property impossible in Western states, but the moment Inter stand to benefit from it, it's like nahhhhh fuck that.

Fuck, watch the news bro. How had you not heard about all this. But yeah, you're completely right in a nutshell. Chinese overseas investment has inflated house prices in my city by a fucking ludicrous amount but the moment we try to take some positives from the situation, we eat dick

Not just Inter as you say, but a big client company of my company lost a huge chunk of business from China as well which directly affects my pay (I work commission). So now, my ability to buy a home in my own city is compromised, my commission is getting gooned, and now even the fucking football team I support is getting shafted, all as a direct result of Chinese finances kind of funny in a sick way.

I was doing fieldwork in China in 2008, and still a keen China watcher.

In China threre is a thing called Wage repression. Money earned from export is put into reserve, then finance though foreign loan (to the US), or domestic investment into infrastructure. In 2008 when the mortgage crisis and shady securitization system triggered the huge financial ourbreak, China put everything in infrastructure as the CCP did not have foreign destinations for their money. Parking ur money in $ is always a safe option - the Economist says $$$ has an exorbitant privilege due to the nature of American debt-fuelled consumption econmy.

The government cant increase Wage because repression policy sustains China competitive advantage - cheap labour (they are restructuring the economy but it takes time). Also, the Communists don’t want a large emergence of a “middle class” - the bourgeois as it would bring about more pressure on the government as well as a possibility of a novel counter-hegemonic ideology. The problem is that infrastructure has hit its limit while export is slowing down. Not only because of the 2008 financial recession but also because of Chinese low position on the ladder of creative industry. In short, the $ inflows slows down.

Meanwhile, Wealth was transfered from Household to the state as interest is set lower than inflation rates. People aint stupid, they keep their savings rather than put them into the central bank. Chinese domestic economy is way more capitalistic than many of you may think, people have channels to make money and to finance elsewhere internationally. Thus, it is understandable when The CCP restricts the outflow of $ leading to our, Inter, current situation, and to the situations that Universe observed. Especially consider the fact that big corporations in China benefited a lot from official connections AND the state putting up protective barriers against foreign competition. Who Jack Ma would be, if Amazon had been allowed to infiltrate Chinese market.

Fantastic post. Agreed completely and thanks for breaking it down.

 

[Bluenine]

This is the more relevant discussion thread for my post:

If you ask me...the reason why we can't have Rafi and Cancelo now is...because of what ET signed in the settlement agreement,Suning and Ausilio are not much at fault here

I think you misunderstand the nature of Inter's Settlement Agreement that Thohir signed.

Thohir's SA: Its NOT like the SA increased FFP restrictions on Inter, quite the opposite. Thohir's SA with UEFA was about relaxing the FFP requirements that Inter have to meet for a period of 4 years. Instead of Inter meeting FFP criteria every single year, Thohir's team negotiated a gradual 4 year progression from the mess Moratti left us with to achieving full compliance of FFP. Without this SA, Inter would have paid severe penalties, bans and transfer restrictions every year because Moratti had left us woefully behind FFP targets. It was because of the SA that Suning were able to invest significantly into the transfers - of course, there were still limits because Inter had to meet the pre-defined profit/loss targets.

Suning Decision: When Suning took over Inter, they had the opportunity to re-negotiate the SA. UEFA allows each new owner some leeway on FFP, like they did with Thohir. Suning could have presented a different business plan and negotiated different FFP terms that allow more investment. But clearly Suning felt that Thohir's SA was good enough and they could fit that in with their plans for Inter. So this was a Suning decision.

What happens after SA: After this SA ends in 2019, Inter will be expected to fully comply to FFP like any other club - no more "relaxed period". However, because the SA moves us gradually into a position where we are fully compliant with FFP, our buying power will gradually increase with the projected increase in revenues. Also, UEFA is expected to gradually relax FFP requirements for everyone which will help Inter once we are out of the SA.

Thohir wasn't that bad: I cringe a bit when Thohir opens his mouth these days, not very fond of him as a personality. But I do respect him for how he managed Inter in terms of professionalism and the much needed financial prudence. I have written longer posts on this before, so will keep it short here. Moratti left Inter in a state of financial ruin, we used to make losses of 70-80m every year and were way behind FFP targets. Thohir brought in professional management, cut down the wage bill, reduced the "black hole" we used to talk about those days, signed a progressive SA with UEFA and followed it professionally, etc. Thohir may have done all this for entirely selfish reasons - to make Inter more sellable and make a profit, but he did sell us to a financially sound group in Suning. As a president, we cannot complain really, he laid the building blocks to a modern, financially sustainable club.

 

[Pimpin]

I know right? Now I don't have to read your posts anymore

chcek the stocks thread you peasant, all firms i said to look out for have been 30%+ in months time

 

[JJM]

He will root for France and his favorite player is Blaise Matuidi...

a Rube player is his favorite playerblivious:


CAN THIS FUCKTARD JUST GOOOO AWAY!

 

[chipschups]

His son is Juventino, ofc he answered like that..

 

[Ed.]

He will root for France and his favorite player is Blaise Matuidi...

a Rube player is his favorite playerblivious:


CAN THIS FUCKTARD JUST GOOOO AWAY!

For someone whose fave player is Nicola Ventola... Matuidi is an upgrade.

 

[Besnik]

Matuidi is super overrated, I'd rather have Rafael Nadal as my fav player

Damn, each time Thohir's thread comes up to new posts, I expect some kind of BS or whatever, dude is annoying as hell and has no clue

 

[Wobblz]

What kind of a person would pick Matuidi as his "favourite player" This guy is just talking out his ass.

 

[hitmax]

What kind of a person would pick Matuidi as his "favourite player" This guy is just talking out his ass.

He has no clue about football. I'm sure de doesn't know half our squad!

 

[Wallace]

What's wrong with Matuidi? He was top class at PSG.

 

[Il Drago]

Thohir to sell Inter shares?
By Football Italia staff

Inter President Erick Thohir is reportedly looking to sell his 30 percent stake in the club.

According to Corriere della Sera, Thohir is seeking a minimum of €150m for his shares in Inter, thereby valuing the club at €500m.

The Indonesian’s role for the Nerazzurri has been increasingly marginalised since Suning Group’s takeover in the summer of 2016, despite still holding the official title of President.

The newspaper notes Suning will welcome a new investor ‘with open arms’ as opposed to buying out the 48-year-old.

Thohir initially bought the Nerazzurri from Massimo Moratti in 2013 and is said to be hopeful of cashing in from their qualification for the Champions League.

 

[Devious]

If I wasnt broke nowadays I'd have bought that 30%

 

[Palatiga]

This is good news actually.
Maybe some arabic prince want to buy the 30%

 

[Devious]

Yes that's what I was saying.

 

[Candreva Crosses]

Yes that's what I was saying.

Arabic prince without money? Devious please :troll:

 

[Il Drago]

Suning to buy out Thohir?
By Football Italia staff

Inter’s majority shareholder Jindong Zhang is reportedly prepared to buy out Erick Thohir’s 30 per cent holding.

Chinese conglomerate Suning Group bought around 70 per cent of the club in 2016, with the former owner dropping to 30 per cent by taking control of Massimo Moratti’s shares.

Now il Sole 24 Ore reports that Suning are ready to take full control of the club - save for some minor shareholders - by buying out Thohir.

The Indonesian investor’s shares are valued at €150-200m, but there are currently restrictions on taking money out of China.

To get around that, Zhang is willing to offer shares in Suning Group in exchange for the Inter shares, which Thohir could then sell on.

Suning is one of China’s biggest companies, with revenues of around $22bn in 2016.

 

[chipschups]

Man thats brilliant, imagine inter buy player and they pay with some share from tons of Suning company lol thats probably so hillarious if we can shitting FFP badly like that..

 

[Palatiga]

Sunning with the indonesian specialty "I don't read what i sign" when he signed the FFP agreement back then