Why is Inter Milan on the verge of bankruptcy, revenue, debt and net worth details

Why is Inter Milan on the verge of bankruptcy, revenue, debt and net worth details

Here is how Marcelo Brozovic’s transfer to Cristiano Ronaldo’s Al Nassr saved Inter Milan from bankruptcy with the club’s net worth and revenue dwindling 

Inter Milan has serious financial problems and, if they don’t get better, an uncertain future. However, they were able to buy some time by selling two players and raising additional revenue.

Why is Inter Milan on the verge of bankruptcy, revenue, debt and net worth details in 2024

The club’s only hope for survival is the money from Marcelo Brozovic’s transfer to Saudi Club Al Nassr, which is now the only thing keeping them afloat. Al Nassr finalised the midfielder’s transfer from Croatia in July of this year.

After paying the yearly salaries of its ten board members, the Italian football team made headlines. All members of the board management, including Alessandro Antonello, the CEO of the business division, and Giuseppe Marotta, the CEO of the sports division, were paid less than $2.16 million for the fiscal year 2022–2023.

In Luca Marotta’s blog, an accountant and auditor, the company reported a decrease in revenues (-3.2%) to approximately $473 million while cutting expenses by 11.8% to $465.5 million. In addition, the club owes a significant amount of money; roughly $898 million; according to the blog. Despite this, the amounts are lower than the $980 million from the prior year.

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The club lost €85.4 million during the 2022–2023 fiscal year, according to a report published this week in the newspaper Il Giornale that examined their records. The deadline for repaying the €275 million loan from the Californian trust fund Oaktree is the true problem, as has long been known. It is set for late April of 2024.

Known for having large finances, the Saudi team paid a whopping $20 million to get Brozovic, who is currently regarded as the league’s greatest midfield player. But the financial stability of Inter Milan also turned out to be greatly impacted by this decision.

In addition to increased revenue from making it to the Champions League Final, they managed to stay solvent thanks to the sales of Brozovic to Al Nassr for €17.5m and Onana to Manchester United for €50.2m.

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Inter Milan is presently dealing with a massive debt load of almost $898 million, which is a big obstacle. Inter Milan’s revenue decreased by a negative 3.2% even after taking all of these actions. Additionally, as of June 2023, the Inter group declared a negative net worth of 161.9 million.

Inter’s debt has decreased to €807m (£701m/$893m) from €881m (£765m/$975m) the previous year with the club’s parent company reporting a negative net worth of €162m (£141m/$179m), which indicates their assets cannot cover their current liabilities.

The drop in revenue was caused by the fact that they did not have a primary sponsor on their jersey throughout the previous season but in the Champions League final, they had Paramount on the front of the jersey, which brought in €4m (£3.5m/$4.5m).

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