Inter's Financial Situation

[Handoyo]

Luka, maybe it also has to do with the fact that we're getting closer and closer each year to the financial rule that UEFA may implement. Hence, clubs are sorting out their balance sheet in advance.

 

[Luka]

Didnt his company make 533m losses recently?

Moratti will not burden Inter with some debt of outside company. He loves Inter too much.

When we're speaking of Inter, through Ibrahimovic sale, we ended up in green (I think Paolilo said as much last year).

 

[Suneet]

What I meant is that he doesnt have the excess money to spend on Inter because his main source of income is in the red big time.

 

[Luka]

You're right, but he didn't spend on Inter last season anyway, because of the cash we got for Ibrahimovic. So without selling Ibrahimovic, and without any buys we wouldn't be in red as it seems. (it can't be any different in this season comparing to last)

If that's our starting point, we can start counting. On prize money we got at least 20-30 mln more this season than last. Add to that 16 mln for Mourinho, and 18 mln that we will save through his contract. Quaresma sale, Muntari sale, Burdisso sale.

We can easily count 100 mln over here. And I'm not even counting other sources, like revenues (CL gates for 2 more games PLUS the final), like TV money, and other revenues.

Suddenly it seems like we would be better off if we didn' win this tripplet, while that clubs that don't win it are in better possition.

Shouldn't it be the other way around ?

Barcelona was able to spend on Ibrahimovic (100mln worth a deal), Chigrynsky 25 mln, Maxwell 5 mln and Keirson 15 mln. That's almost 150 mln worth spending, and they didn't got this money out of the moon. It was thanks to CL win.

With us, it seems like it is worse this year (while winning everything there was to win) than last year

I mean What The Hell.

 

[CafeCordoba]

It's not like you make it to be. That previous season is some kind of zero point and we can compare that season and the last season without taking our history into consideration. In previous years, we've made losses in our operation. Those losses have been covered by Moratti himself. Maybe there are still losses (debts) to be covered? My point is that maybe Moratti isn't willing to cover those losses anymore and he wants to use this prize money for that. And now this financial fair play has gathered some credibility during the last season so Moratti is perhaps starting to prepare for that also.

 

[Luka]

This is how our debt works:

1. Moratti decides to buy players X, Y and Z
2. Moratti uses Inter money. If the club doesn't have money we overspend the money from our budget and we end up with a loss in our budget for next season.
3. Moratti is covering the loss, by borrowing money to Inter from one (or more) of his companies. That's how Inter "debt" was created over the years. Moratti is borrowing money from himself to himself. So far I wasn't able to find out what is the purpose of it, but there must be some (most likely some money is saved in this process, unlike a simple donation from Moratti).

If we didn't finish our last season in a red, there was no need for Moratti to invest his own money. I seriously doubt Massimo put any serious money last season, except for maybe those works that were done at Appiano.

 

[CafeCordoba]

Yes and we don't know do we made losses or not. We have to also remember that we are going to lose TV-money (collective bargain agreement in Serie A next season), which has been our biggest source of income.

Generally speaking, Moratti doesn't want to pump that much his money to the club anymore but wants the club to "run" itself. He wants to make Inter more self-sufficient.

 

[Luka]

Yes and we don't know do we made losses or not.

I strongly remember somebody from our management saying that last year was the first year we made a small profit, instead of a loss (meaning MM didn't have to cover the budget loss with his money as he always did). I think it was Paolilo but I'm not sure. Stefan might remember that one.

Generally speaking, Moratti doesn't want to pump that much his money to the club anymore but wants the club to "run" itself. He wants to make Inter more self-sufficient.

I'm aware of that. What I'm pointing at is that last season MM didn't pump much money (if he pumped any at all).

Suddenly this year, with all the extra money we gained (unlike last season), we are (as the story goes) in a position where we need to sell in order to buy.

To me, it seems we were better of last season, which is strange. Sure, we didn't sell a player worth 100mil, but certainly we earned a lot of money thanks to our big success, and through the sale of Jose.

 

[Stefan]

Our Ceo explained somethings in an interview with tutto sport. Should be carefull never know if they twisted words.

He says we plan to break even within 2 years. He says we have improved our financial position but still made a loss. Says on the stadium that we are waiting for a certain law to be passed. Anyone know what law he is referring to??

Says the financial fair play is the only way to go to insure football doesn't follow the financial world.

http://translate.google.com/translate?u=http%3A%2F%2Fwww.tuttomercatoweb.com%2Finter%2F%3Faction%3Dread%26idnotizia%3D21652&sl=it&tl=en&hl=&ie=UTF-8

 

[blackmore]

guys we need to look at some non-footballing situations as well here. no doubt inter as a team would have had a better financial year this year compared to last, just off basis of revenue making, but we must understand the sitution of MM and his other company also.

inter as a football club are slowly getting to a balanced revenue, and MM wants to make them self sufficient. its basic economics here, we need to sell in order to buy, otherwise were is all this excess money going to come from. we cant use what we have made over this season cause that has probably been thrown back into the people/companies that have forked out cash in the first place.

20 years of net loss and then one year of net gains(not saying its inter case) does not suddenly mean we are making money or that we have liquid cash at our disposal. we need to think about the millions that have been pumped in over the years and in fact where that money came from and how we are going to put it back.

for inter this year is the first in a long time that they can put something substantial back to the club, and will not greatly change our transfer perspective, we will still have to sell in order to buy.

 

[Ziyad]

Our Ceo explained somethings in an interview with tutto sport. Should be carefull never know if they twisted words.

He says we plan to break even within 2 years. He says we have improved our financial position but still made a loss. Says on the stadium that we are waiting for a certain law to be passed. Anyone know what law he is referring to??

Says the financial fair play is the only way to go to insure football doesn't follow the financial world.

http://translate.google.com/translate?u=http%3A%2F%2Fwww.tuttomercatoweb.com%2Finter%2F%3Faction%3Dread%26idnotizia%3D21652&sl=it&tl=en&hl=&ie=UTF-8

The law could be about tax breaks for building the stadium or subsidies.Just a guess though.If you remmember there was talk about the govt. helping out teams that build stadiums to bid for the Euros.Problem is that bid failed (i think) because France (another reason to hate them) won that bid.

 

[Black&Blue]

The law could be about tax breaks for building the stadium or subsidies.Just a guess though.If you remmember there was talk about the govt. helping out teams that build stadiums to bid for the Euros.Problem is that bid failed (i think) because France (another reason to hate them) won that bid.

One thing is certain,if Italy won't build new stadiums (with the clubs as their owners) Italy will be surpassed by Germany easily in the next years and probably by France after 2016,this is the priority.

 

[Ziyad]

One thing is certain,if Italy won't build new stadiums (with the clubs as their owners) Italy will be surpassed by Germany easily in the next years and probably by France after 2016,this is the priority.

Revenue wise we are definately surpassed by Germany.Bayern make more than 100% on us when it comes to matchday revenue.They also make 300%+ on us from their commercial revenue streams.Suprisingly we make more than them from broadcasting (115 m to 69.6m for them) but thats going to change with the new tv deal,but maybe CL broadcasting increases for us there..

-These figures are from Deloitte
-in Euros
-from season ending in 2009 so no CL success effect on these figures yet.

Stadium can easily generate another 20m/year.We need to build it fast and do it smartly to shift cost away from the Club as much as possible.

 

[Black&Blue]

Revenue wise we are definately surpassed by Germany.Bayern make more than 100% on us when it comes to matchday revenue.They also make 300%+ on us from their commercial revenue streams.Suprisingly we make more than them from broadcasting (115 m to 69.6m for them) but thats going to change with the new tv deal,but maybe CL broadcasting increases for us there..

-These figures are from Deloitte
-in Euros
-from season ending in 2009 so no CL success effect on these figures yet.

Stadium can easily generate another 20m/year.We need to build it fast and do it smartly to shift cost away from the Club as much as possible.

Sure the comparasion between Bayern revenues and any italian team is "embaressing",but I was talking in general not only Inter,Italy needs a radical change if we want to stay at high levels like we always used to do,I'm sure that something will happen in the next 2 years but the change won't be so quickly (looking also at the italian situation of the moment) in my opinion.

My wish is that Inter will have finally his own stadium around 2015 (Expo year).

 

[CafeCordoba]

I'll move this discussion here.

I strongly remember somebody from our management saying that last year was the first year we made a small profit, instead of a loss (meaning MM didn't have to cover the budget loss with his money as he always did). I think it was Paolilo but I'm not sure. Stefan might remember that one.


I'm aware of that. What I'm pointing at is that last season MM didn't pump much money (if he pumped any at all).

Suddenly this year, with all the extra money we gained (unlike last season), we are (as the story goes) in a position where we need to sell in order to buy.

To me, it seems we were better of last season, which is strange. Sure, we didn't sell a player worth 100mil, but certainly we earned a lot of money thanks to our big success, and through the sale of Jose.

guys we need to look at some non-footballing situations as well here. no doubt inter as a team would have had a better financial year this year compared to last, just off basis of revenue making, but we must understand the sitution of MM and his other company also.

inter as a football club are slowly getting to a balanced revenue, and MM wants to make them self sufficient. its basic economics here, we need to sell in order to buy, otherwise were is all this excess money going to come from. we cant use what we have made over this season cause that has probably been thrown back into the people/companies that have forked out cash in the first place.

20 years of net loss and then one year of net gains(not saying its inter case) does not suddenly mean we are making money or that we have liquid cash at our disposal. we need to think about the millions that have been pumped in over the years and in fact where that money came from and how we are going to put it back.

for inter this year is the first in a long time that they can put something substantial back to the club, and will not greatly change our transfer perspective, we will still have to sell in order to buy.

Yeah, like I said earlier, it's not about just the season 08/09 and the season 09/10, and how well we did in those seasons. It's the big picture. We need to reduce our costs to become self-sufficient. It's not self-sufficiency if we don't make losses in a year when we win the Champions League. We can't win that every year, maybe not in the next five or ten years. To make the necessary transfer we need to sell. Probably Maicon's renewal was just for securing our base (longer contract, RM needs to pay more) and he didn't got the real pay raise. And Moratti is not willing to pay that big salary. He's not going to give Zlatan/Eto'o salaries anymore to anyone. And not even salaries around 8-10m€ per year. It's just too expensive.

When it comes to Paolillo's comments, very promising. He understands that financial fair play is the way to go and Moratti wouldn't have been investing money anyway forever to the club. So only option to keep Inter competitive is to make it generate more money to run itself. And stadium talk is couraging, hopefully the law goes in Inter's favour and the planning can be started as soon as possible. Juventus will be at least couple of years in front, when it comes to enjoying revenue from the new stadium so we need that ASAP.

 

[Suneet]

A lot of our transfers are about salaries as well. Maybe we are paying way too much as wages.

 

[junior55]

I understand the whole idea of the financial fair play but yet i can't see how can our club profit in this by selling maicon..

Maicon has a wage of 4.5 M and is asking for a raise that it is deserved . Honestly i don't think that he wants to get 10M after his raise . Probably his agent wants to get to 6M so the picture in my view is this:
We have a player who is determinant to our team who is being paid 6M (taking in consideration that he recieves the raise)
So we sell him for 30M (gessing) and we buy for 30M mascherano who still wants 6M of wage(by the roumors) and is not determinant for us + leaves an empty space in the Rb spot.....

Honestly where is the profit here because i can't get it. . I would understand to sell eto'o who has a 11M wage and this would be a great step towards wage balance but i don't hear any roumor about him so i'm a little confused about our strategies...

 

[CafeCordoba]

Most probably that is not the case here. Rumors are rumors but like you said yourself, that scenario wouldn't make any sense. And as it's been stated by Inter officials that we need to raise money to make transfers, the money is definitely an issue here. We won't pay 30m€ for Mascherano and we definitely won't pay 6m€ per season to him if we indeed manage to sign him. And maybe Maicon is asking more than 6m€ per season. We don't know these details but we can make logical assumptions that there is something related to money why our management is considering selling Maicon.

 

[Tanel]

Between, I believe UEFA's financial fair play rules are said to encourage clubs to invest into infrastructure etc. So we really must get that spade into the ground for a new stadium ASAP. I cannot wait for the day they announce the new stadium... tho then is the day I have to start getting my money together to visit San Siro.

 

[CafeCordoba]

It's said that we were 154 millions in red last autumn and we have a plan to reduce that significantly.

http://translate.google.com/translate?u=http%3A//www.fcinternews.it/%3Faction%3Dread%26idnotizia%3D25206&hl=en&langpair=auto|en&tbb=1&ie=ISO-8859-1