Inter are no strangers to losses

The authoritative Swiss Ramble reviews Inter’s accounts for 2019/20, when the COVID impacted pre-tax loss widened from €40m to €97m (post-tax €102m), as revenue fell 18%, partly offset by €62m profit on player sales. Gross debt of €411m highest in Italy

The 18% revenue decrease in 2019/20 is pretty much in line with other European clubs that have so far published accounts, other examples including Juventus 18% and Napoli 17%

The pre-tax loss widened from €40m to €97m (post-tax €102m), significantly impacted by COVID, as revenue fell €68m (18%) from €370m to €302m, partly offset by profit on player sales increasing €22m to €62m

The operating loss (excluding profit from player sales and interest) widened from €51m to €133m, though still better than the enormous operating losses at the other members of the traditional “Big Four” Italian club: Juventus €234m, Milan €202m and Roma €195m.

Inter are no strangers to losses, having only reported a profit once in the last decade (€33m in 2014). Over that period, they have accumulated €570m of losses (€604m after tax), including €164m in the four years under Suning’s control.

Ongoing revenue grew by €99m (49%) in the 4 years since the Suning takeover from €203m to €302m, though €46m has come from Regional (Chinese) sponsors. That said, Champions League qualification was also worth €46m

The post-tax loss is not the worst in Italy, as it is beaten by Roma €204m and Milan €195m, while Juventus also had a €90m deficit, all impacted by COVID.

The largest revenue decrease came from commercial, down €51m (31%) from €166m to €115m, though broadcasting also fell €22m (14%) from €153m to €131m.

Profit on player sales rose €22m to €62m, mainly Mauro Icardi to PSG €47m, George Puscas to Reading €7m and Yann Karamoh to Parma €3m. This was one of the highest gains from this activity in Italy

Like many clubs, Inter have become increasingly reliant on player sales with the €226m profit generated from this activity in the last 5 years being around €100m more than the €122m reported in the preceding five-year period.

It is imperative that they qualify for Europe, ideally the Champions League, to boost their broadcasting income, as the TV rights in Serie A are relatively low. The club only received €117m from Europe in last five years, almost all from 2019 and 2020. This is miles behind Juventus €449m, Roma €255m and Napoli €246m, due to those clubs consistently qualifying for the Champions League.

Inter and Milan have been working on a project to build a new stadium on the San Siro site and revitalise the surrounding area. Following the city council’s demands for changes, partly to preserve a section of the iconic old stadium, a revised plan was submitted in May 2020.

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The Political Economy of Football V2

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