FUNDS CUT
In the last five years, 777 million were paid by the shareholders of Inter and Milan: now there’s the stop.
Juve are different as they’re facing the deficit.
The Italian patronage is at dusk as if they want to adapt to the spirit of the current time. Recession, the chase to balance budgets and of course the financial fair play have said enough with the spending spree. Elsewhere, however, spending money continues to run crazy from the sheiks, the oligarchs, and even the Chinese. The question is: how can our team resist on the international scene? While Inter and Milan are chasing austerity, Juve have been investing in order to strengthen its team. All teams including these big three seem like wasting their effort in order to compete with Abramovic and Mansour in any bidding war for top players. Our football has gone from a luxurious restaurant to a pizzeria (like Galliani said) and what will be the time when Berlusconi and Moratti – as announced – limit the injections of money into their respective club?
Covered It is a vicious cycle that we’re going to tell you. It is about to organizations, Inter and Milan which, historically, have always been supported and maintained by the shareholders. Let’s limit ourselves to the past five years, the Nerazzurri’s shareholders have effectively made payments on capital account (or recapitalization) for 567.4 million and 209.5 million for the Rossoneri. So the carousel of the transfer market has made it a necessity to sell valuable pieces. Just look at the balance of acquisitions-sales from 2009-2010 to 2011-2012: + 25 million for Milan, + 15 for Inter, on the same plus level is also Manchester United at + 24 million. Why all this? Simple, the last five years, funding coming from Moratti and Berlusconi has been essential to offset the budget shortfalls (665.3 million in total for Inter, 245.4 for Milan). Revenues from Television right, as a result of sharing collective, marketing and stadium are not taking off while what’s left are mountains of salaries which are no longer tolerable. So with less money coming in, then you also have UEFA with its slogan of “spend only what you have.”
Crisis It is true that the relationship between costs and turnover of Inter (88%) and Milan (85%) are on the same wavelength as the crazy spenders in Chelsea (85%) and Manchester City (114%). The difference is that Abramovich and Mansour have no intention of stopping regardless of the financial crisis for financial fair play. Moratti and Berlusconi, however, must deal with the difficulties of their respective companies: the stock market of the former Italian Prime Minister has halved from 3.5 billion in 2011 to 1.9 in 2012 and Mediaset has filed its first quarter with a 85% drop in profit. Saras is still in the red zone and decided not to distribute dividends. However for Juventus, they have followed different strategies: it is not a coincidence that they are among the big spenders on the transfer market with a negative balance of 139 million. However, the payroll of Juventus is fairly low at the 10th spot in Europe.
Source: Gazzetta dello Sport
