Inter Milan have seen a “drastic” drop in their net debt as well as wage and amortization over the last year.
Italian news outlet Gazzetta.it highlight the current financial situation at the Nerazzurri.
Inter’s financial issues have never been a big secret in recent season.
Since the start of the pandemic, revenue issues relating to the lack of stadium revenues during lockdowns and the financial issues of parent company Suning have taken their toll.
However, the club have responded with ambitious cost-cutting measures to avoid further problems.
The Nerazzurri have raised significant cash through player sales. This has been a significant source of revenues.
Meanwhile, the club have also taken big steps towards lowering the wage bill.
Therefore, in each of the last few years, Inter’s ration of costs to revenues has improved.
Net Debt, Wage & Amortization Spending All Down As Inter Improve Financial Health
As the Gazzetta note, Inter’s highest ever ratio of costs to revenues came during the 2020-21 season.
That campaign, and fiscal year, saw the Nerazzurri spend €245.6 million more than they brought in in the form of revenues.
Then, in the 2021-22 campaign, Inter spent €140.1 million more than they earned.
In the 2022-23 season, Inter spent €85.4 million more than they earned.
Television revenues went up significantly (from €37.7 million to €79 million). As did stadium revenues (from €155.8 million to €195.6 million).
Both of these jumps largely resulted from the team’s run to the Champions League final.
And these revenue increases compensated for the poorer-than-expected commercial revenues that had been the result of the failure of the club’s main shirt sponsorship by cryptocurrency company DigitlaBits.
And the Gazzetta note that further improvements to this ration can be expected for the ongoing season and fiscal year.
Total wage spending has gone down from €248.4 million gross per season to €22.69 million.
And total amortization spending has also gone down. The club has cut the total costs of transfer fees on their balance sheet from €101.1 million per season to €89.9 million per season.
Meanwhile, the Gazzetta note, as of June 30, 2023, the total net debt at Inter was around €437 million. This included €76 million in shareholder loans which were converted into equity.
The newspaper anticipate that this amount will drop further in the next set of accounts.
Then there is also the progress that Inter are making on the new stadium front.
A new stadium would certainly mean a significant boost in terms of revenues.
