Inter's record of losses

The authoritative Swiss Ramble reviews Inter’s latest accounts. The pre-tax loss widened from €97m to €239m (post-tax €246m), despite revenue increasing €51m (17%) to €354m, as profit on player sales fell €61m to just €246k. Unsurprisingly, Inter ‘s €246m post-tax loss is the highest in Italy in 2020/21, comfortably ahead of by Juventus €210m, Roma €185m and Milan €96m.

In fact, the €246m loss is the highest ever registered in Italy, as COVID has exacerbated underlying financial issues. It was only exceeded in Europe in 2020/21 by Barcelona’s horrific €481m loss. It is worth noting that Inter are responsible for nine of the 20 worst losses in Serie A.

In fact, the big four Italian clubs have lost a staggering €1.3 bn in the last 2 seasons (€591m in 2019/20 and €737m in 2020/21). Inter were second worst in this period with their €348m deficit only surpassed by Roma €389m, but higher than Juventus €300m and Milan €291m.

The club have lost an amazing €724m in the last 10 years (pre-tax), including €403m in the 5 years under Suning’s control. They have only reported a profit once in that period (€33m in 2014). The club expects another loss in 2021/22, though “significantly reduced”.

Like many clubs, Inter have become increasingly reliant on player sales, averaging €49m in the four years up to 2020, but no profits in 2021. This season will be a different story following the big money sales of Romelu Lukaku to Chelsea €113m and Achraf Hakimi to PSG €67m.

Player trading was an area that needed to improve, as they have lagged behind: in five years to 2020 their €226m profit was far below Juve €563m, Roma €372m & Napoli €325m. In fact, only two players sold for a profit above €10m since 2017: Icardi €47m & Pinamonti €19m.

The €354m revenue remains second highest in Italy, though still around €100m less than Juventus €450m. On the other hand, there is also clear water between Inter and the other challengers: Milan €241m, Roma €197m and Napoli €179m.

I t is imperative that Inter qualify for Europe to boost broadcasting income, as TV rights in Serie A are relatively low. England €3.6 bn and Spain €2.0 bn saw big increases in 2019, while Italy was unchanged at €1.3 bnn. In fact, the new 2021-24 deal will be lower.

Inter earned around €50m from the Champions League, even though they did not get out of the group. This was less than prior season’s €61m: €44m after finishing 3rd in Champions League group plus €17m for reaching Europa League final, though some money deferred to 20/21.

The club have received €171m from Europe in last five years, almost all from 2019 to 2021. This is miles below Juventus €454m and also less than Napoli €243m and Roma €209m, but way ahead of Milan €46m. This also has an impact on the UEFA coefficient ranking.

The €142m commercial income is still the second highest in Italy, albeit a fair way below Juve’s €194m. Their growth in this important revenue stream in the last 5 years has only been outpaced by the Bianconeri, but leaves them well ahead of Milan, Roma and Napoli.

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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