A leading Italian financial newspaper says Inter’s accounts should have prevented them from registering for Serie A.
While the FIGC and the Lega Serie A don’t apply UEFA’s Financial Fair Play rules, there are nonetheless measures in place whereby clubs have to prove their finances to register ahead of the season.
Today Gianni Dragoni of Il Sole 24 Ore has analysed the club’s recent financial results and concluded “one wonders how the Nerazzurri can be admitted to the Serie A championship”.
A leading Italian financial newspaper says Inter’s accounts should have prevented them from registering for Serie A.
While the FIGC and the Lega Serie A don’t apply UEFA’s Financial Fair Play rules, there are nonetheless measures in place whereby clubs have to prove their finances to register ahead of the season.
Today Gianni Dragoni of Il Sole 24 Ore has analysed the club’s recent financial results and concluded “one wonders how the Nerazzurri can be admitted to the Serie A championship”.
The consolidated net equity was negative to the tune of €83.41m up to June 30 2017, which is €29m worse than 12 months previously.
That means the capital injected by the shareholders is insufficient to cover losses, with the club having made losses for years.
Last year the net loss was €24.6m, though that is an improvement on the €63.1m in 2016.
In the last financial year, total consolidated debt increased to €637.56m, almost €150m more than the previous year.
Shareholder loans accounted for €221m, with bank debt at €208m and debts for player purchases at €112.5m.
Inter are majority owned by Suning Group at 68.55 per cent, with another 31.05 per cent for Erick Thohir and 0.4 per cent other shareholders.
The Chinese owners took over in the summer of 2016 and granted shareholder loans for a total of €298m, the final tranche of which was €81m in July and August 2017.
There was also a €142m capital increase, which the money largely used to pay debts and interest.
To keep to the 2014 FFP agreement with UEFA, the club has pledged to break even up to June 30 2017, or face a fine of €7m.
Il Sole 24 Ore believes they are confident of achieving that, as UEFA allows certain costs such as stadium upkeep and youth academies to be separated out.
It should be noted that Suning Group had a revenue of around €19bn in 2016, with Inter owner Jindong Zhang said to be worth around €5bn.