In today’s print edition of Italian business newspaper, finance expert Marco Bellinazzo has reviewed Inter’s current financial state off the back of the Nerazzurri confirming club record revenues of €417 million in 2018/19.
“The growth of the Nerazzurri club continues, despite some difficulties in respecting the balance between revenues and costs, as evidenced by the loss of €48 million, which is worse than last year. However, this deficit comes due to the constant investments that the Nanjing company is making at the level of physical infrastructure and technology.”
Next he looked at some recent sponsorship deals signed by the club.
“Last year, contracts were signed with FullShare Holding Ltd. (active in the tourism services and childcare sectors), King Down Investments (better known as Lvmama, online travel agency) and Beijing Imedia Advertising Co. Ltd. (Chinese sports marketing agency), for a total amount of €45 million.”
He then discussed capital gains Inter made on the sales of several of their young talents.
“Capital gains from transfers have been made with the sales of Adorante (€3.9 million), Burgio (€1.4 million), Forte (€0.2 million), Pinamonti (€19 million), Sala (€2.9 million), Vanheusden (€9.5 million) and Zappa (€2.9 million).”
The report also states that general costs increased from €322 million to €428 million essentially due to the growth of the total number of hired personnel but also due to the increase in the salaries of non-registered personnel following the new hires and money for Luciano Spalletti and his staffs sackings – equal to €25 million alone.
€156 million were spent on registered personnel (compared to €119 in the previous year), while there was €84 million in amortisation.
In conclusion, Bellinazzo touched upon Inter’s debt.
“At first it appears very burdensome, although the total dropped from €814 million to €774 million. This figure is made up by €287 million of the recently issued bond, €149 million of loans granted by Suning, €135 million in transfer debts and €80 million to suppliers, with Inter having liquidity of €54 million and receivables of €283 million.
“With Suning’s funding removed, the Nerazzurri club’s debt is around €300 million and therefore appears to be sustainable, although there is no doubt that it should be cut down to prevent interest and financial burdens absorbing as it now does at a rate of around €23 million per year.”
