APA Milan president hits out at Inter’s financial situation: 'Technically bankrupt'

The president of AC Milan’s Small Shareholders Alliance has claimed that Inter are ‘technically bankrupt’ and that the pandemic helped them cover up losses.

Inter have spent the last few days celebrating their Scudetto win, one which saw them hit 20 league titles and thus gives them the right to put a second star on their shirts. However, there has always been the feeling that the bubble might burst.

For further context, the rough financial situation of Milan’s city rivals Inter was laid bare by an article from The Athletic that explores the recent trends and the concerns for the future.

Essentially, it suggests that it seems difficult to see them sustaining a run of silverware given their economic situation is a ticking timebomb. Even last season when they made the Champions League final for the first time in 13 years, the club still made an €85m loss.

Now, the lawyer Giuseppe La Scala – who is the president of APA Milan – spoke to TvPlay about Inter’s economic and financial situation, and he did not hold back regarding his assessments.

“Inter, like many other teams, from the point of view of solvency ratios, are technically bankrupt. They have been able to survive in recent years thanks to the fact that the Covid regulations have made it possible not to cover losses and to manage finance, with regard to the payment of players’ wages, in a totally loose manner,” he said.

“Now Inter are recovering thanks to a management of the highest quality from the point of view of containing losses, but continues to lose and burn cash. Now the owners are faced with the need to repay the bonds, first of all those stipulated upstream, at the head of the control chain, at rates for which refinancing costs around 15% more per year on 400 million.”