Inter Milan's excellent news 21 months of total debt reduction of 200 million gradually out of the Conte era of the giant pit

Cold snow chatting ball

2024-05-08 08:40Posted in Hubei Serie A commentator, Tencent football special writer

A number of Italian media reported that after being crowned with the second star, Inter Milan had good news.

The "great news" mentioned here is not only the "tactical" good news such as the breakthrough progress in Lautaro's contract renewal negotiations, but also the "strategic" level.

Financial experts confirmed that Inter Milan has significantly reduced the club's total external debt from 881 million euros, and in 21 months, Inter has reduced at least 200 million euros of foreign debt.

The foreign debt mentioned here does not count the money owed by other teams to Inter (such as the part of the installment payment of transfer fees for those who sold people), only the amount owed by Inter to other countries.

As of July 2022, Inter's total debt was 881 million euros, an officially confirmed figure.

By July 2023, the figure becomes 807 million euros.

Financial experts pointed out that according to official figures (Inter's financial data is only until the first quarter of 2024), by the end of March, Inter's total debt will be less than 700 million euros, and it is expected to be between 6.5 and 680 million, compared to 881 million 21 months ago, a reduction of 200 million.

For some time, anxiety peddlers have often used "800 million foreign debt" to create the theory of Inter's collapse, but now, this statement is out of place, let's say more than 600 million.

This momentum proves that Inter are on the right path.

In January, we introduced the origin of the $800 million foreign debt.

The arrears of the sports business, 95 million, of which the lion's share is the fees owed to the agent company, which are like transfer fee installments, according to the contract, paid in installments at a specific point in time, and are counted as arrears until they are paid.

Tax and public sector debt, $93.5 million.

Debts such as transfer fees owed to other teams, 145 million.

financial debt, 408 million. Other liabilities, 54 million.

What are the key reasons for the reduction of external debt?

The Italian media pointed out that there are mainly three changes.

First of all, it is Zhang Kangyang's efforts.

Among the so-called "other debts", the lion's lion's debt to major shareholders was caused by Zhang Kangyang's injection of half a billion yuan into the team last season.

At the shareholders' meeting at the beginning of the year, after the completion of the "debt-to-equity swap", this part of the debt was significantly reduced.

Moreover, Inter paid a lot of expenses in the first quarter of this year.

Inter traditionally has a February and March period of each year as an important financial node, for example, the buyout clause of many "rent-to-own" players is activated in February (such as Asllani last season, Frattesi and Arnautovic this season). In addition, many taxes, transfer instalments, commission instalments and sporting goods fee settlements are also paid at this point in time.

Half of Inter's external debt is this type of arrears, and when part of it is paid, the figure is naturally reduced.

Of course, the main reason for the reduction of Inter's foreign debt is that the high debt generated by the ultra-high investment in the Conte era is being repaid one after another, while the cost of building the team in the Inzaghi Jr. era is relatively small.

Take, for example, transfer fees.

Most of Inter's recruitment and transfer fees in recent years have been paid in installments, so in the past 21 months, many of the fees for the Conte era have been repaid, and with the completion of the repayment of these fees, the foreign debt will naturally be greatly reduced.

Of course, Inter's recruitment in the past two years has also been paid in installments, and it will also be counted as new arrears until the payment is completed.

However, today's Inter team building efficiency ratio has increased significantly, this season as a whole, Inter Milan through the sale of Onana, Brozovic, Mulatieri, Colidio, Lazaro and others, a total of 129.3 million euros in transfer fees, the introduction of Pavard, Asllani, Buchanan, Bisek and others, a total of 70.75 million euros, transfer net profit of 58.6 million.

In today's mode of operation, it is natural that debts will not soar like in the days of Chief Kong. When the number of "old debts" is much greater than that of "new debts", it is normal for the total debt to be reduced.

As an aside, yesterday an AC Milan fan asked me: Why would RedBird Capital prefer Lopetegui or Conceição rather than bring in Conte? Isn't that a few million euros more than an annual salary? I can only answer: if you think that Conte is only expensive, then you are naïve!

Of course, we can't report good news and bad news, and we must also see that the financial data shows that Inter still has a big problem to overcome, that is, the proportion of "net financial debt" is increasing.

The so-called net financial debt is the money that is actually owed to the bank or institution, and the interest is calculated.

Five years ago, Inter's net financial debt was only around 100 million euros.

By July 2023, the Nerazzurri's net financial debt reached 308.8 million euros, and the resulting high interest caused a huge burden on Inter.

Now, with the reduction of the total amount of external debt, the proportion of net financial debt will naturally increase, which is a very helpless thing, unless it changes hands or Inter receives a lot of real money support, otherwise this problem will always be with Inter for years to come.

In short, under the current situation, Inter Milan can no longer regain the gameplay of the Conte era, smash super high investment, play the Champions League crotch pull, and let the team's finances come out of a new big hole, but should face up to the difficulties, adhere to the two-year team building policy, pay attention to controlling costs, increase income, and gradually improve the financial situation.

In any case, the huge increase in revenue brought by the second star, the reduction of 200 million foreign debt in 21 months, is a remarkable achievement for Inter. If this continues, the "Inter collapse theory" will be self-defeating, and it will not be difficult for the Nerazzurri to continue to live and live to the fullest.

View original image 1.97M

• 

• 

• 

• 

• 

• 

• 

• 

•