Chapter 697: The Loser Becomes a Tall, Rich and Handsome Man
At first glance, it seems outrageous that Yang Huan would spend 130 million euros, a sky-high price, to operate Inter Milan's transfer.
But in fact, if you think about it carefully, it may not be the case.
As the saying goes, every crisis brings opportunity. The Italian economic depression and the overall decline of the Serie A have directly led to the poor income situation of the 20 Serie A teams. With less income, the players' salaries naturally cannot be increased.
Just like Alan of Udinese, isn't this player's performance eye-catching enough?
He received an above-average salary at Udinese, but his annual salary after tax was only 300,000 euros.
If this contract were placed in the Premier League, it would be at the level of a potential rookie in the youth training camp!
But is Udinese a special case?
Obviously not!
After Nainggolan joined Inter Milan, his salary increased, but after tax it was only 1.5 million euros.
As a talented forward attacker favored by everyone, after joining Inter Milan, Dybala's salary doubled compared to when he was in Palermo, but it was only one million euros per year after tax.
The situation of Italian international Damian is exactly the same as that of Dybala. After coming to Inter Milan, his salary doubled, which is also one million euros per year after tax. After Morata came to Inter Milan, his annual salary was also one million euros after tax. De Vrij's annual salary is 900,000 euros after tax, and Felipe Anderson's annual salary is 700,000 euros after tax.
After Inter Milan's round of upgrading, a large number of high-paid players in the team have been basically cleared out. The only players with an annual salary of more than 1.5 million euros after tax are Palacio, Handanovic and Ranocchia.
Among them, Palacio has the highest annual salary, reaching 3.2 million euros after tax, becoming the highest paid player in Inter Milan after the reorganization, second only to Khedira.
It is through this cleansing and reorganization that Inter Milan's investment in transfer fees is indeed huge, but it has saved 50 million euros in salaries. Now the annual salary expenditure is about 140 million euros, slightly less than Roma, and has dropped to fourth place in Serie A.
But the situation in Roma is very interesting. The Red Wolves offered De Rossi an annual salary of 6.5 million euros after tax, which is the highest salary in Serie A. In addition, there are as many as 16 players with annual salaries exceeding 1.5 million euros, including seven with more than 2.5 million.
This is mainly because Roma has performed well in the past two or three years and has firmly occupied the top three in Serie A, so they have been constantly raising salaries for some outstanding players in the team. Otherwise, how can they retain them?
Although Inter Milan's salaries have been reduced and the player structure has become much more reasonable, if the team continues to perform well, the salary will have to increase again. But by then, Yang Huan will consider clearing out high-paid veterans like Palacio.
Even from a cruel point of view, if Ranocchia does not perform well, Yang Huan will consider selling him.
There is no other way. With a salary expenditure of four or five million a year, you can't support a useless person, right?
As for talking about the club's feelings, traditions, loyalty and the like, Yang Huan thinks it's better to forget about it!
Moratti's Inter Milan was largely tied up by these things. If he were to do the same, wouldn't he be repeating Moratti's mistakes?
Besides, Inter Milan is not the sky. Don’t the players who leave Inter Milan have anywhere else to go?
In this world, no one should think of himself as a savior, as if the earth cannot rotate without him.
Since this is a matter of professional football, let's do it in a professional way!
Marco Fassone stood in front of the big screen in the conference room, feeling a little excited.
From the first day he arrived at Inter Milan, he prescribed a solution, which was a pay cut.
But during Moratti's period, although there were reductions every year, the reduction was too small. But now, 50 million euros were reduced in one go, which immediately made him feel relieved.
But this is just cost-cutting. The real test for him as the CEO will be the subsequent open source.
People in the conference room were also talking about it. Apparently the data had not been summarized yet. They had not expected it to be so impressive. How much money did Inter Milan lose in a year?
Subtracting the salary expenditure of 50 million euros almost means that Inter Milan's annual losses have been significantly reduced, which also makes the employees who have been living in the shadow of debt in the past few years breathe a sigh of relief.
"Okay, everyone, this is roughly the salary structure. Next, let's talk about income!"
Fasone's words immediately made the conference room quiet.
Just because he can cut his salary by 50 million euros, who would dare to disobey him?
But Fassone knew very well that this was a gift from Young Master Huan to him!
"Since the Calciopoli scandal, the overall downturn in Serie A has been very obvious, and Inter Milan's revenue has also been declining. You can take a look at this picture!"
The projector displayed a chart, which clearly showed Inter Milan's revenue in the past few years. After 2006, the revenue in 2007, 2008 and 2009 was declining all the way. In 2010, it reached its historical peak again.
That year, the team won the Champions League and the Treble.
But since 2010, Inter Milan's revenue has plummeted, and its ranking among European teams has dropped from eighth to twelfth, and then to fifteenth. It is estimated that it will be even lower this year.
"Many people will attribute the problem to the Italian economy and the downturn of Serie A teams, but is this a reason?"
At this point, Fassone switched to the next picture, "We can see that after Juventus moved into the new stadium, its revenue has been rising steadily, and AC Milan's revenue has also increased significantly. This proves that the objective environment should not be the reason for our sharp drop in revenue!"
By this point, Fasone had almost completely blocked all reasons and excuses.
In other words, if Inter Milan's revenue drops sharply, it can only look for the reasons within itself.
"First, the TV broadcasting income. After the collective broadcasting contract was implemented in the 2010-2011 season, Serie A has allocated 40% on an average basis, 30% based on the fan base, and another 30% based on historical performance. Of this 30% historical performance, 5% is based on last season, 15% is based on the past five seasons, and 10% is based on performance since 1946."
Following Fasone's analysis, the projector switched the image again.
"As you can see, our performance has been declining over the past few years, so our broadcasting revenue has also been shrinking. In the three years since the collective broadcasting contract, our revenue was 86 million, 80 million and 75 million respectively."
"That is to say, last season we lost 10 million euros compared to three years ago!"
"Not only that, we lost the Champions League. Let's not talk about other things. Just the share of the Champions League prize pool. There are only three teams in Serie A. If we can get into the Champions League, we will get at least 20 million euros in the prize pool. If we add other income from the Champions League, the total loss from losing the Champions League will exceed 30 million euros!"
Everyone present looked at Fassone on the stage in disbelief; they did not expect the loss to be so serious.
But the more obvious change came from Fasone.
Perhaps, he was unable to fully display his strengths during Moratti's time, but now, he is going to show his talents in Inter Milan!
"Finally, matchday revenue. It's hard to believe, but we have the highest attendance in Serie A, but our matchday revenue is at the bottom of the league."
Fassone switched the picture again.
"It is clear that the Meazza Stadium is not our private property, which severely restricts the team's operations."
Looking at the team income rankings in the picture, almost all teams that share a stadium have very low income on match days, such as Roma and Lazio. Roma is currently ranked 19th, slightly better than Inter Milan.
This is indeed a very deceptive thing.
Therefore, AC Milan would probably be happy to see Inter Milan move out of the Meazza Stadium, because in this way, they would be able to occupy the Meazza Stadium alone.
Of course, if conditions permit, building a new stadium would be ideal.
"Our matchday revenue last season was around 19 million euros, which roughly covered the stadium rental and maintenance costs. This is obviously unreasonable because we attract more than 40,000 or even 50,000 fans to every game. Why is the revenue so low?"
Fassone was famous for his stadium management at Juventus. When he arrived at Naples, he relied on stadium management again to further increase Napoli's income, making the latter's income firmly among the top in Serie A.
Inter Milan's current situation is very simple. Its commercial income is not low. Even with the start of negotiations on a new contract between Pirelli and Nike, price increases have become inevitable. Once the International Champions Cup Asia region starts, Miracle Media is actively seeking sponsorship for Inter Milan and is expected to sign one or two contracts.
By that time, commercial revenue in Serie A will be considerable!
TV live broadcast income is linked to the team's performance, and Fassone is often powerless to do anything about it.
Therefore, the only thing he can move is the match day income!
"I am here to present the team's plan and goals to all of you. We want to increase the match day revenue from the current 19 million euros to 30 million euros in the 2014-2015 season."
Many people present were surprised when they heard this, and were all amazed at Fasone's ambition.
You know, in Serie A, Juventus has the highest match-day revenue, but it is only around 40 million euros.
But don't forget that Juventus has its own brand new, modern stadium, and the income from the supporting facilities around the stadium is quite lucrative every year, but what about Inter Milan?
There is almost no development in the area around the Meazza Stadium!
Just like that, the match day revenue will reach 30 million euros?
Of course, we cannot say it is impossible. After all, Premier League teams easily earn 50 or 60 million, and top teams easily earn over 100 million on match days. What are 30 million euros?
But it must be said, it is quite difficult!
However, as long as they saw the determined look on Fasone's face, they would understand that this point was not negotiable!
Just kidding, after Inter Milan's reform and reorganization, Master Huan was determined to let it embark on the path of modern management. Coupled with such a large-scale signings and other supporting resources, Inter Milan has transformed itself overnight from a loser to a rich and handsome man, saying goodbye to a junk stock and becoming a high-quality potential stock!
If Fassone and his management team don't keep up, they will be eliminated.
Besides, as long as the new stadium is completed, Inter Milan will inevitably become the most competitive team in Serie A. If they can steadily enter the Champions League and accumulate for a few years, then what is impossible for Inter Milan to return to the top?
Thinking of this, Fasone's eyes became very determined.
Because he knew very well that Young Master Huan had given him this opportunity, and as long as he seized it and succeeded, it would become the most brilliant achievement in his career.
Therefore, there must be no room for error!