Inter Milan is trying their best on-field but have a series of off-field issues
Inter Milan, who have reached the champions league final in Istanbul through an unexpected journey, are on the verge of winning their fourth European title. However, their financial difficulties are in stark contrast to their wealthy opponents, Manchester City.
Inter, a club that has made a comeback on the field, represents the challenges faced by Europe’s historic clubs due to a significant debt. Despite winning Serie A two years ago and having the potential to win the Champions League, the club’s financial stability is at risk.
Inter is facing the challenge of repaying a 275 million euro emergency loan taken from Oaktree Capital by their Chinese owners, Suning, with a high interest rate of 10%. The COVID-19 pandemic and restrictions on capital outflow from China have caused financial difficulties for the club, resulting in the sale of two key players and the departure of their coach.
Failure to repay the loan within a year could result in Oaktree taking control of the club, similar to how Elliott took over AC Milan from a Chinese businessman in 2018. Inter has also suffered significant financial losses due to the pandemic, with a loss of 140 million euros last season and record losses of 245.6 million euros the previous year.
“Paying a debt at the level of interest that the club is paying Oaktree is not sustainable,” said former Inter general manager Ernesto Paolillo last month.
“(Chairman) Steven Zhang won’t be able to export capital from China and nor will he be able to cover the debt with other resources. He will have no choice but to default on the agreement and sell the club to them.”
Inter’s participation in the final on Saturday, regardless of the outcome, could alleviate some of their issues that were worsened by DigitalBits, their cryptocurrency sponsor, failing to make payments on an 80 million euro agreement.
However, in terms of financial power, there is no comparison between Inter and City. City is supported by Abu Dhabi and benefits from TV revenue, which gives even recently promoted Premier League teams more influence in the transfer market than Italy’s top clubs.
The past few seasons have been very enjoyable for Inter on the field, with notable achievements such as taking the title from Juventus, losing it to AC Milan on the final day, and defeating their local rivals to reach the Champions League final. However, their progress in Europe has been accompanied by a lackluster Serie A season, with 12 losses resulting in 12 fewer points than the previous year.
Napoli’s dominance in the league allowed other Italian clubs to focus more on European competitions, where they have often underperformed. Inter had a good chance of reaching the final after the quarter and semi-final draws were made in March, and their pursuit of continental glory has revived a season that looked bleak at one point.
After eliminating Benfica in the quarter-finals, Inter has won 11 out of their last 12 games across all competitions, with their only loss coming against Napoli. This impressive run also saw them secure their second consecutive Italian Cup and a spot in the top four of Serie A. Inter’s attackers, Lautaro Martinez and Romelu Lukaku, have been in excellent form, with Martinez scoring 11 goals in his last 13 games and Lukaku scoring seven goals and providing five assists in the same period.
Despite this, Inter faces an uphill battle against the heavily favored Manchester City, and the financial disparities between the two teams are unlikely to change anytime soon.
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