Italian journalist Marzo Bellinazzo believes that a recent New York Times article exaggerated the severity of Inter Milan’s debt situation.
Speaking to Radio Nerazzurri, via FCInterNews, Bellinazzo, who is a football finance expert for Italian business newspaper Il Sole 24 Ore, also revealed the possible scenario which could lead to a bidding war to purchase the Nerazzurri from Suning.
In anticipation of last weekend’s Champions League final, major US newspaper the New York Times profiled Inter.
The newspaper’s description of the club’s situation off the pitch characterized things as being very dire. The NYT particularly noted the seriousness of the Nerazzurri’s debt situation.
However, Italian journalist Bellinazzo has responded to the way that the NYT wrote about Inter’s situation.
In his view, things are not as bad as the US newspaper makes them out to be.
Bellinazzo: New York Times Off The Mark Regarding Inter Milan’s Debt
Bellinazzo explained that “Basically, if I interpreted what they wrote correctly, they’ve analyzed the financial statements as of June 30, 2022. Those are what the gross debts that they wrote about amount to.”
“However, they fail to take into consideration a series of positive developments on the club’s financial statements,” he noted. “Both in terms of liquid assets, or the credits that lower the debt.”
“In the balance sheet, the bulk is made up of the bond €400 million which was issued some time ago,” he notes.
“Then, there are about €140 million in liquid assets and €100 in loans.”
“The debt from Oaktree, on the other hand, is not included within these bounds,” he noted. “Because it is underwritten by companies higher up in the chain of control of the club.”
“It’s a very significant debt, which has to be reduced,” Bellinazzo maked clear. “It doesn’t fall within the parameters of Financial Fair Play.”
“The worrying aspect concerns all the interest that must be paid on that debt,” he noted. “It’s decreasing, but still amounts to €45 million, a sum that could well be invested for one or two big name players.”
“I found the New York Times article to be a bit excessive,” Bellinazzo made clear. “We’ll have to wait for the year-end report, which will take negative situations like the DigitalBits sponsorship situation into account.”
“But also many positive aspects, related to the club’s deep run in Europe, but not just that.”
How Inter Milan Could Fall Within FFP Regulations
Currently, Inter’s debt puts them outside the strict Financial Fair Play regulations imposed by UEFA.
“All of this has to do with their income statement,” Bellinazzo explained. “Based on how much enters and leaves the club’s coffers.”
“It takes into consideration that a part of the costs have been cut with the lowering of the wage bill, and also a certain amount of deprecitation.”
“All of this will have to be projected onto the coming seasons, and above all work within the settlement that the club has with UEFA,” he elaborated. “They expect to get back into falling within the paramaters of FFP regulations by 2025.”
As for whether or not a potential change in ownership could affect Inter’s FFP settlement with UEFA, Bellinazzo made clear that it would not.
“Little changes from this point of view,” he said. ‘The settlement agreement is signed with the club, and is independent of any change of ownership.”
“However, it cannot be excluded that, possibly, some stakes could be renegotiatied.”
Bellinazzo Believes Inter Worth At Least €1.2B As Bidding War Could Break Out
Asked if the €1.2 billion asking price for Inter is realistic, Bellinazzo replied that “The value of a club that has just played in a Champions League final could even be higher.”
“It’s always about finding an interested buyer,” he noted. “Just look at a club like Manchester United that could change hands for between €5-6 billion.”
“It’s true that Inter have the problem of significant debt, which should in any event be factored into the price.”
“They do not have their own stadium, but that discussion could be clarified in the coming months,” Bellinazzo noted. “At that point, the value of the club would rise, even if not to Premier League levels.”
Bellinazzo suggeted that “I think Steven Zhang’s idea is to continue leading a club that is repositioning itself on the international stage.”
“He’s waiting to understand what kind of room to manouevre Suning will have.”
However, Bellinzaao observed that there is “A war ongoing between major US and Arab sports financiers.”
“And a bidding war could break out for Inter if China decides to give up the last major investment left in a European club,” he predicted.
“We always have to set these things against a backdrop of political scenarios in China, which are inscrutable,” Bellinazzo made clear.
