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The classic November trip to the budgets of TuttoMercatoWeb clubs has to deal with the Coronavirus. Because it is clear that it will be a season of decline for structured commercial revenues and that, net of capital gains, practically all clubs will be in sharp decline. It could be a blank year for Financial Fair Play – but this will be decided later – but for almost everyone it will be at a loss
INTER
On November 27th there will be the shareholders’ meeting to approve Inter’s 2019-20 financial statements. But it is clear what the deficit will be One hundred million red, more than double compared to 30 June 2019 – when the budget had stopped at 48.4 million – but also the need to face a global pandemic that has shifted a part budget (45.6 million) the following year to avoid another predictable haemorrhage. However, the sale of Icardi provided a lifeline.
TELEVISION RIGHTS – Many the 110 million collected by Serie A for the media, plus 15 million euros compared to the previous year, with a clear improvement. The entry into the Champions League helps not to reach 50% of the proceeds coming from TV, but it is still evident that it is a very important part of Inter’s earnings, probably with a production value of around 320-350 million in the budget that will be approved on November 27.
COSTS – They increased a lot as of March 31, 2020, as much as 73 million euros probably due to expenses for depreciation and fixed assets of the players (Lukaku, Barella – redemption obligation in February 2020 – Eriksen to name three) and the salaries that have exploded compared to the previous year. For now there is no negotiation for the reduction of salaries, which ended in stand-by after a principle of agreement.
INSURANCE AND LOWER INCOME – There are 13 million that Inter consider as lost since San Siro was unable to open its doors to the fans. However, a substantial part of these 13 million, ten, will be covered by insurance due to the interruption of activities due to closed doors.
REGIONAL CHINESE – Inter sponsorships dropped from 130.5 million to 69.5 in the last year. Surely there is an incidence of the pandemic, but on the other hand it is the regional sponsors that have had a decidedly negative impact (from 42.9 million) due mainly to two reasons. The termination of the contract with Fullshare Holding Limited and King Dawn Investments Limited which, at the end of March 2019, exercised its right to unsubscribe from the sponsorship on 1 July 2019. This had an impact on 30 June 2020 of 20 million. Therefore it is not the fault of the pandemic. The termination of the contract with the Beijing Yixinshijie marketing agency as at 30 June 2019, for an impact of 25 million, also this not due to the pandemic. This reduction was partially covered by the 2.1 million euros of new regional sponsors during this fiscal year. Inter are however optimistic because these rights could be reused for other business in the future. The pandemic has certainly influenced the definition of new agreements. The reality is that sponsorship revenue fell 61 million to 69.5 million from 130.5 million as of June 30, 2019.
45.6 MILLION FOR THE NEXT BUDGET – Due to the pandemic, Inter had a decline in revenues of around 61 million euros: 230 for 2019-20 compared to 291 the previous year. A portion of sponsors (19 million), Serie A TV rights (8.1 million) and UEFA TV rights (18.5 million euros), have been moved to the 2021 budget, due to the postponement of last season’s final. 45.6 are therefore at 2020-21. On the other hand, there was the salvific sale of Mauro Icardi which made it possible not to drown completely, given the 50 million entered by the farewell of the former Italian-Argentine captain.
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