Italian Journalist Marco Bellinazzo: “Suning Want Inter Costs Reduced By 20%, Free Transfers Would Help” | OneFootball

Suning are aiming to cut 20% of Inter’s costs before next season, according to an Italian football finance expert.

The Nerazzurri’s president Steven Zhang outlined the financial challenge facing the club in a meeting with directors yesterday, confirming Inter would have to reduce spending and lower their wage bill.

Inter are expected to follow a policy of ‘austerity’ in the transfer window and there is a risk of key players being sold, such as Milan Skriniar and Stefan de Vrij.

Speaking on Sky Sport Italia today, Il Sole 24 Ore reporter Marco Bellinazzo explained: “Suning will work to reduce Inter’s costs by around 20%, with a whole series of factors which could increase or decrease this percentage.

“Inter’s squad costs €300 million per year to maintain, considering wages, taxes and amortisation, and that eats up all of the revenue the club are bringing in structurally during the COVID-19 pandemic.

“The revenue stream has been reduced due to having no income from the stadium (with no fans allowed).”

Inter will have their hands tied to some extent in the upcoming transfer window, but that does not mean they can’t make any signings at all.

“Their cost reduction program will have to be married with other operations which could lower the wage bill and tax payments,” Bellinazzo suggested.

“For instance, Inter could sign players on whom they can use Italy’s growth decree to pay less tax, or they can work on signing free agents.

“They might also look to renegotiate the contracts of players they already have in their squad.”

Bellinazzo also explained the rationale behind the loan deal Suning are close to securing for Inter, which is widely expected to come from either Bain Capital or Oaktree in the US.

“The loan will give Inter the money they need to pay their bills until the end of the season (June 30),” he added.

“After that, they’ll need to repay the €150 million bond Suning took out.

“Inter’s loan won’t create any more stress on the club’s accounts because it will be done through Suning’s holdings group (Great Horizon).

“They’ll need to guarantee financial stability, because that allows you to work on respecting performance-related bonus payments.

“Inter’s bonus payments in all their contracts could have a less traumatic impact (on the club’s finances) when they go and renegotiate contracts with big players.

“The situation isn’t only affecting Inter, though; it’s not as if everything is happy and easy elsewhere (at other clubs).”