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.

Wolves get raw deal from FFP

I used to see a lifelong Wolves fan for lunch once a month. He was approaching ninety, but still went to games. Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules. Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000. The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts. Money brought in from football has gone up too. Match day income is

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved: https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen. There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere: https://thecharltondossier.com/charlie-methven-on-the-record/

The Political Economy of Football V2

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