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Inter Milan, Ivan Perisic and the Financial Fair Play regulation

Manchester United have been playing hardball about signing Inter Milan midfielder, Ivan Perisic. The 28-year-old Croatian international is wanted by Jose Mourinho to add bite and penetration to what was a static attack last season, and launch an assault on the major trophies next term.

Ivan Perisic photo

Photo by Club Brugge

The Red Devils have been knocked back in their pursuit of the former Wolfsburg man as his club have held out for £44m, while United don’t want to pay any penny north of €35m. The Italian giants well documented issues with Financial Fair Play regulations problems means that they need to raise €30m by the end of June, and United want to underprice the player with the knowledge that Inter have an obligation to raise money before the deadline or risk paying up to €7m in fines and face the prospect of earning a transfer ban.

Financial Fair play was implemented by UEFA in 2009, as a method of regulating the transfer market and ensuring clubs don’t spend more than what they earn, so as not to hurt the survival of the clubs long term. It came into force starting from the 2011-2012 season and has been fairly successful in ensuring that the very big clubs that don’t have business models are stifled from spending their owners’ money without being stable financially from a business sense. In the case of Inter Milan, they might not have to sell Perisic anymore as other player sales are being negotiated to help them get out of the financial conundrum.

The stature of the Italian Serie A has fallen in recent times and the division had been beset by issues of match fixing, corruption scandals, irregular football betting offers, and lack of major economic issues since the stock market crash of 2009. They have been unable to compete with the very best clubs in Europe as more players go to other leagues in search of better wages and higher prospects of winning the major competitions. No Italian team has won the Champions League in 10 years, and despite Juventus reaching the finals 2 times in the last 3 years, they have been blown away by Spanish sides, Barcelona and Real Madrid who have better players and better structures to ensure they keep generating income to attract the best players around the world.

Lack of adequate matchday revenue caused by the San Siro stadium has been a factor. The City of Milan own the stadium meaning that its tenants, Inter and fierce rivals, AC Milan pay up to €9m annually for the use of the stadium. The deal with the city council also stipulate that a portion of the matchday revenue is also set aside, ensuring that Inter have very little coming in from that source. Last season, the TV rights in England, both domestic and international were put at a mammoth $4.55b while The Italian league could only muster $1.26b though that is expected to change come the end of the season.

Inter are looking to sell the the likes of Ever Banega to Sevilla(€9m), Gianluca Caprari to Sampdoria(€13m), Federico Dimarco to Sion(€2m), Senna Mlangue to Cagliari(€3.5m). This would ensure that they have no need to sell Ivan Perisic to help offset Financial Fair Play requirements.

Kit Sponsorhips and other sponsorships packages are in the mind of the Suning Group to put Inter back in the elite of European clubs and help end the domimance of Juventus have enjoyed in recent years. Keeping Perisic would be the start.

 

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About Roman Borissov

Roman Borissov
Roman studied at Mainor High School in Estonia. After he went to University of Tartu for obtaining Master of Arts degree in specialization “Design and development of virtual environments” in 2009. Few years later he has founded BRO OU Company, which maintains web projects like Footballwood.com. Roman played football for the University of Tartu in a position of a midfielder for 3 years. He truly loves this game and happy to be part of that world. MSc. Editor has many projects to maintain, but Footballwood is one of the favorites. “Our project is inspired by a passion for that magnificent game, which I played since childhood. And today we are happy to connect our life and work with football”, this is how Roman describes Footballwood. Personal contact: [email protected] Also, visit page “Contact US” if you want to know more about Roman’s company.

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