Suning are not looking to sell Inter contrary to multiple media reports circulating at this time, according to noted Italian journalist Marco Bellinazzo.
Speculation over Suning’s future as Inter’s owners has been rife in the past week or so with reports in Italy stating they are seeking a new minority shareholder to come on board.
Other reports have meanwhile stated that one potential investor, BC Partners, would even be willing to buy the club outright.
In an exclusive interview with Italian news outlet FCInter1908.it, Bellinazzo has denied Suning have any intention of selling Inter.
“Do Suning intend to sell Inter? No.
“Since their acquisition of Inter, Suning have invested more than €650 million in the club and clearly has every intention of moving forward, to see the fruits of these investments.
“Therefore, there is no type of document or indication that can lead to the presumption of an upcoming sale of the company.”
He then went on to address whether Inter are a club who find themselves in a financial crisis or not.
“There is a crisis underway, which concerns Inter but the problem is not dissimilar for all large global companies.
“Right now, the financial crisis is absolutely inside the world of football, which had never been affected by external economic situations before, always managing to pass unscathed while continuing to grow.
“The operational consequences of the pandemic created a financial crisis and Inter arrive at this crisis in a very delicate situation.
“In this sense it is comparable to Juventus in the growth path set by the owners to achieve certain sporting goals, witnessed by the increase in the amount of salaries.
“There was the misfortune for Inter that, at the moment in which the club had to reap the rewards of these investments, this pandemic has arrived which has caused a decrease in revenues.
“This has been seen to some extent in the financial statements as of 30 June 2020, with Inter losing €100 million.
“Let’s imagine what could happen this year: there could be lost revenue of up to €100 million, or something less.
“Inter typically collect between €40-50 million from San Siro, and then there was the failure to qualify for the next round of the Champions League, which forced the club to miss out on around €20 million.
“To the already complicated situation of last year, therefore, we add about €75-80 million.
“This gives us the picture of the difficult time of the club. It is a general situation, but more serious for the Nerazzurri, precisely because they were on this path.”
Bellinazzo then discussed the €375 million bond Inter have in place and how the entry of new partners could make them more solid.
“Let’s clear this up: Inter placed a bond on the market, they requested a loan from the market, with an important volume and it expires in 2022.
“These bonds are generally not refinanced close to the deadline, otherwise there is a risk of worse conditions.
“A year or a year and a half before the deadline, you go to the market with a teaser, which presents your financial situation and plans for the future, with the aim of looking for subjects, whether they are banks or private equity funds, who can offer this loan for even larger amounts, given the need for liquidity, but perhaps at a lower interest rate. Therefore, on more favourable terms.
“In a moment of crisis like this, Inter could get a better rate, with a more sustainable debt.
“After that, it is evident that, if you go to the market, there may also be private equity funds, which have a great interest in football at the moment, that can buy shares at advantageous prices.
“When the crisis is over, these shares can be sold at higher prices.
“Since Inter are on the market, exploratory talks have been started with various parties, including BC Partners, although they are not the only one who may be interested in joining not only as creditors, but also in acquiring minority stakes.
“In this sense, a negotiation could be opened with both Suning and LionRock Capital.
“The difficulty of this operation is the price of the shares.
“Suning, in fact, does not intend to sell them off.
“It would involve acquiring a minority stake, as Suning does not want to go below 51%.”
The Il Sole 24 Ore journalist then discussed the possible impact that the Chinese governments newly imposed restrictions could have on Suning’s investments into Inter.
“The governance of the economy is always very delicate when it comes to China, especially in the relationship between private companies and political decision-makers.
“Football was the subject of major investments a few years ago. Now, however, the priorities are different.
“Also in view of the economic crisis, apart from the fact that China has recovered, these directives require an exposed group like Suning to rationalise these investments.
“So, everything we have said before is related to this. Apart from the crisis suffered in the network of shops, not in e-commerce, there are the limitations of the Beijing government that determine the search for new partners, before immediately putting capital into Inter.
“The various events are connected, otherwise it would not be explained.
“All this must be seen in the contraction in revenues due to the pandemic, which will last for a few years.
“Just think of the TV rights contracts.
“The growth of football will stop and the damage will have to be limited.”
