Inter, Covid effect on commercial revenues but with capital gains the deficit will be reduced

The agreement with Oaktree has already brought 50 million euros into Inter’s coffers. This is what emerges from the quarterly report of Inter Media and Communication, in which it is specified that on May 20, the majority shareholder concluded “a new financing transaction, with the aim of supporting our Group in improving the cash flow position before reaching a balanced budget target” . Immediately after the closing with the North American fund, Inter received a capital injection equal to 50 million euros in cash, through a shareholder loan provided to the Nerazzurri company, which also collected 22.2 million euros “through payment of commercial contracts with related parties “. Over nine months, the deficit trend stands at 115 million, pending verification of how many and which capital gains will be realized by 30 June 2021.

Anti-pandemic resources

Liquidity that allows Inter Milan to lighten the weight of the effects of the Covid-19 pandemic, due to which the club has agreed “the deferral of salary payments to players and coaching staff, in full agreement with the counterparties and in full compliance with the sporting regulations provided for by the FIGC and Uefa ». From the North American fund, again through the corporate chain that belongs to the club, another 190 million will arrive in the coming months (out of the 275 million of total funding). For the first nine months of the current year, Inter Media and Communication reported adjusted revenues of € 247 million (+ 19.5% compared to the same period in the previous year). The calculation includes 19 million sponsorship revenues from the financial year ended 30 June 2020, 8.1 million indirect average revenues relating to the sale of receivables deriving from the last installment of the 2019/20 season and 19.4 million average revenues Uefa, again for the 2019/20 season. Sponsorships come from 70.1 million euros (up by 28.8% compared to the same period in the previous year) divided as follows: 29.5 million from technical and jersey sponsors, 13.9 million from European and global sponsors, 26 , 6 million from regional sponsors and naming rights. Season-to-season realigned sponsorship revenues are down 7% in consideration of the “discounts” that the club has granted to sponsors, mainly due to the closure of the stadium and the cessation of corporate hospitality activities.

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Average revenue

Media revenues from direct sources decreased by 5.4% and amounted to 11.9 million euros for the nine months in question. Average revenues from Serie A are 91.4 million (-5.8%) and with the 2020/21 season now completed, the Nerazzurri club expects a total of 102 million euros from national TV rights. On the Uefa front, on the other hand, after three quarters, average revenues amounted to 45.3 million (+ 6.4%). Regarding the jersey sponsorship, the contract with Pirelli. A bond that lasted 26 years, the longest in the history of European football. For months, Inter has been looking for a new partner and the club confirms that it has entered into several negotiations to find a new sponsor: “In this regard – reads the note – we are in discussion with a series of potential new jersey partners, with the aim of finalizing an agreement before the start of the new sporting season ».

Superalloy

There is also a reference to the Super League, of which Inter was one of the 12 founding companies, but «immediately after the announcement, all six English founding members formally announced their intention to withdraw from the Super League project. In light of this, given the lack of support from the majority of the founding members, FC Inter deemed it appropriate to announce its intention to withdraw from the Superlega project ».

Shareholding structure unchanged

On the corporate front, the parent company of Inter finally changes, but only on a formal level: 68.55% of the company is now owned by another Luxembourg holding company, called Grand Tower Sarl. This entity, also controlled by Suning (through Great Horizon and another new holding, Grand Sunshine) was created “in the context of the financing plan” involving the Oaktree fund. The directors of the Luxembourg-based company are Yan Chen, Silvana Fernandez Tortillo and Qian Zhao, former directors of Great Horizon.

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Author: Sam Smith
Graduated from University of Oxford. Previously, he worked in various diferent news media. Currently, it is a columnist of the world news section in the Free News editors.
Function: Editor

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