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Inter Milan post Italian record losses of €246m

Serie A champions Inter Milan have posted an Italian football record of €245.6 million ($284.6m) in losses for the 2020-21 financial year, the club announced Thursday.

Earlier this month, Juventus had announced losses of €210m ($246.3m), which at the time was the most of any team.

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“The entire 2020-2021 financial year was significantly affected by the socio-economic impact of the COVID-19 pandemic — both in Italy and worldwide — and the restrictive measures adopted to safeguard public health and production activities,” an Inter statement read.

“Within this context, consolidated revenues were €364.7m. The financial year recorded losses of €245.6m, most of which due to the complete lack of matchday income following the closure of stadiums (compared to 2020, when stadiums closed in early March), the reduction in sponsorship contracts as a result of the club being unable to provide benefits and the liquidation of sports contracts.”

Inter have been one of the hardest hit clubs by the coronavirus pandemic, with their Chinese owners, Suning, suffering serious financial losses.

The club were forced to take out a €275m ($319m) loan from investment firm Oaktree, which must be paid off within three years plus interest.

Soon after clinching the title, manager Antonio Conte left his role and was replaced by Simone Inzaghi, while Achraf Hakimi — one of Inter’s star players — left to join Paris Saint-Germain for a deal that could be worth up to €70m ($81.1m) and top scorer Romelu Lukaku joined Chelsea for a fee of €115m ($133m), according to ESPN sources.

Inter highlighted their partnership with blockchain-enabled fan token platform Socios.com as a major positive in their push to achieve financial stability.

“The club swiftly initiated a rebalancing policy with two primary aims: to ensure financial stability and to maintain a competitive team on the field,” Inter said in their statement.

“Summer transfer operations generated a positive economic impact on the path towards sustainability. The signing of experienced international players and the return of talented academy products were part of the drive to maintain a high level of on-field performance.

“The club’s strategy is focused on monitoring costs, with the aim of quickly adapting the business to the changing context, while continuing to invest appropriate resources to develop the club. One major result was the significant increase in sponsorships value. The arrival of Socios.com and DigitalBits as well as the upgrade of Lenovo’s positioning bear witness to the club’s constantly growing global appeal.

“While stadiums are yet to return to full capacity, their partial reopening ensures the club can once again tap into what is an essential revenue stream. This action will enable us to significantly reduce the group’s losses for the 2021-22 season.”

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