Inter Milan's 5-Year, €90M Deal Awaits Zhang Kangyang's Green Light: Why the Delay?

This round of Serie A saw Juventus suffer a defeat at the hands of a rejuvenated Lazio, while AC Milan narrowed the points gap with Inter to 11 after beating Fiorentina. Buoyed by this, Milan's players are gaining confidence, with Calabria boldly proclaiming that they will not allow Inter to clinch the title in the Milan Derby. However, the Curva Nord seems to disagree, as they have already begun preparations, mobilization, and rehearsals for a potential title celebration during the derby.

Inter’s match will take place early Tuesday morning, but the most talked-about figure in the Inter community over the past day has been transfer market expert Gianluca Di Marzio. He pointed out that Inter faces significant difficulties in acquiring Albert Guðmundsson, as the Icelandic player is priced at €30 million plus at least €5 million in bonuses. At such a price, a move to the Premier League seems far more likely than a switch to Inter. Additionally, Di Marzio confirmed that, like Rafael Leão, Lautaro Martínez has received numerous offers but prefers to stay in Milan, making his contract renewal with Inter highly probable.

“Leão and Lautaro are two great champions,” Di Marzio noted. “They are both doing very well at AC Milan and Inter Milan respectively, and they have no desire to move elsewhere, such as the Premier League. I believe the Nerazzurri and Rossoneri will continue to enjoy their presence.”

Over the past day, several relatively reliable reporters have confirmed that Inter and Lautaro have reached a preliminary agreement on a five-year contract with a net annual salary of €9 million. The only remaining hurdle is the lack of a green light from Inter’s owner, Zhang Kangyang.

The Complex Negotiations

Lautaro’s contract renewal has been through multiple rounds of negotiations. A few weeks ago, Lautaro was demanding an annual salary of €10 million, while Inter was only willing to offer €8 million. Despite these differences, both sides remained optimistic about reaching an agreement. Now, several media outlets report that both sides are willing to compromise at €9 million. Furthermore, Lautaro has agreed to additional performance-based bonuses, which are more team-oriented, rather than being linked solely to his attendance.

Generally, in any professional environment, such a shift in bonus structure is unappealing. For instance, if your company proposed changing your contractual bonus, previously guaranteed by mere attendance and compliance, to one contingent on the company's profitability, you would likely be reluctant. However, as Di Marzio noted a few weeks ago, even if both sides agree, the renewal can only be finalized with Zhang Kangyang’s approval. So far, Inter has not received this approval from China.

The Reasons for the Delay

There are two main reasons for this delay. First, Inter’s current strategy focuses on “reducing costs and increasing efficiency.” A transaction that significantly raises the team's salary cap and total wage bill requires the board to demonstrate a cautious approach. Even if approval is ultimately granted, the board will likely delay the decision to show their prudence. For example, when Marotta and Inzaghi wanted to sign Francesco Acerbi, the player had already arrived in Milan for his medical examination, but Zhang delayed approval until the last moment. This delay was a demonstration of the board’s stance that spending millions on an older player is not their standard practice and should be considered an exception.

The board’s cautious approach has proven to be justified. A year after spending money on Acerbi, Inter spent even more on another veteran, Marko Arnautović, which turned out to be one of the least cost-effective transactions in last summer’s series of transfers. Thus, in matters of significantly raising the salary cap, Zhang will not give the green light lightly or readily. Ultimately, a financially struggling team should be cautious about substantially increasing its salary cap.

Secondly, according to La Gazzetta dello Sport, Zhang’s current focus is on resolving the issue of the Oak Tree loan due at the end of May. Only after this matter is settled will he finalize the budget for next season, creating the conditions necessary to approve such a significant contract. If Lautaro signs the five-year deal with a net annual salary of €9 million, the total value, including bonuses and taxes, will exceed €90 million. For a club with an annual net revenue of around €400 million, excluding player sales, this is a significant financial commitment. Given the sensitive timing, Zhang’s decision to delay approval has its reasons.

The Impact of the Uncertainty

In the short term, Lautaro’s contract renewal is unlikely to be finalized and announced. However, this uncertainty also presents an opportunity. It is unrealistic to expect that a player will not feel anxious or distracted by unresolved financial matters that directly affect their future. As professionals, we too would likely be preoccupied with such concerns. It remains to be seen whether Lautaro can maintain his focus on the pitch and live up to the expectations symbolized by his captain's armband despite these uncertainties.

As the Milan Derby approaches, the stakes are higher than ever. Both teams are vying for dominance, with Inter’s players aware that their future success hinges not only on their performance but also on the resolution of their contract situations. The psychological and emotional state of players like Lautaro will undoubtedly influence their on-field performance. Inter’s fans and management alike will be watching closely, hoping that Zhang’s eventual decision will allow the team to secure their star player's future and maintain their competitive edge.

Meanwhile, the broader implications of Inter’s financial strategy and Zhang’s cautious approach will continue to play out in the background. The delicate balance between financial prudence and competitive ambition is a challenge faced by many top clubs, and Inter is no exception. As the season progresses, the outcomes of these negotiations will have a lasting impact on the club’s trajectory, both on and off the pitch.