Inter have received a bond from the American multinational finance company Goldman Sachs. As reported in The Financial Times the chief of the Sports Finance Division at Goldman Sachs, Greg Carey says “This operation provides huge additional funds to Inter’s budget, allowing the club to manage a stable business without having to rely on support from its’ owners.”
Calcio & Finanza report that apart from clearing a large of sum of debt, the bond will also add an extra €82 million straight into Inter’s budget. Carey also explained that the technicality introduced into the bond structure convinced investors to focus on Inter.
The key to this structure is that the bond uses a “cascade” payment system. This ensures that incoming cash from future revenues are used for the debt service before they can be spent by the club. They have developed a structure that provides a solid financial foundation by ensuring that creditors are paid and at the same time instils financial discipline at the club.
