Inter Milan's Three Contract Extensions Reveal Strategic Considerations: The Club's Tradition of Humanitarian Care Shines

As 2023 concludes and 2024 begins, the pressure on Inter Milan mounts, especially after Juventus defeated Roma, reducing the gap between the two teams to just two points. However, the final day of 2023 brought good news for the Nerazzurri as they announced three significant contract extensions. Henrikh Mkhitaryan extended his contract until 2026, Federico Dimarco until 2027, and Matteo Darmian until 2025. These extensions serve as rewards for their contributions, performances, and professional attitudes. Yet, these extensions have raised questions among fans and pundits alike. Here’s a detailed analysis based on reports from La Gazzetta dello Sport, Sky Sports, and various football market experts.

Strategic Timing to Avoid New Tax Laws

Initially, Inter Milan planned to announce these contract renewals in mid-January. However, the announcement was moved up to December to take advantage of the current tax laws. The club has a longstanding practice of registering contracts with the relevant authorities before making public announcements, ensuring thoroughness. By registering Mkhitaryan's new contract before the new tax law comes into effect in 2024, Inter can avoid additional taxes. Under the current law, Mkhitaryan’s post-tax salary of €3.9 million would have required a pre-tax salary of €7.3 million. By registering his contract before the law changes, his gross salary is about €5 million, saving the club millions. While this may seem insignificant to wealthier clubs in the Premier League or Paris Saint-Germain, it’s a substantial saving for Serie A clubs.

Dimarco's Contract Duration: A Deliberate Decision

Federico Dimarco’s contract extension to 2027, rather than 2028 as previously reported, has sparked speculation. Some wondered if the shorter extension indicated an intention to sell the player, who is valued at €50 million by Transfermarkt. However, experts explain that this decision actually benefits the player. The North Stand, where the passionate Inter fans are, hopes Dimarco will retire at Inter. Extending his contract to 2027 rather than 2028 aligns with his interests. If Dimarco signed until 2028, his next contract negotiation with Inter would likely occur in late 2027 or early 2028 when he would be 30 years old. At that age, Inter’s financial department tends to be stricter with contract lengths and salary caps for older players. By extending to 2027, Dimarco will be in his prime at 28-29 years old during his next negotiation, potentially securing a more favorable long-term deal. This move, seen as accommodating Dimarco's future interests, underscores Inter’s commitment to their homegrown talent.

Mkhitaryan's Contract Extension: A Hidden Clause

Henrikh Mkhitaryan’s extension until 2026, when he will be 38 years old, raised concerns about the risks of retaining older players. However, there is a key clause in his contract. Inter can pay a termination fee to release Mkhitaryan in the summer of 2025, allowing both parties to reassess the situation. If Mkhitaryan feels his body can no longer compete at the highest level and wishes to move to leagues like the Middle East or MLS, Inter will not stand in his way. This clause mitigates the club's risk while ensuring the player’s financial security. If Mkhitaryan helps Inter achieve significant milestones, such as winning their 20th league title, he can either retire at the club or embark on a lucrative move abroad with Inter’s support. This approach ensures a graceful and mutually beneficial separation if necessary.

Financial Realities and Humanitarian Care

Inter’s financial struggles are well-documented, and the abolition of the beneficial tax law exacerbates their challenges. Club executives like Giuseppe Marotta have indicated that selling high-value players may become a strategic necessity in the coming years. Fans must accept that high-selling and low-buying strategies are commercial realities. Balancing financial prudence with maintaining team spirit and performance is crucial.

Inter is not solely profit-driven; the club also values human connections and does not seek to exploit players. This balance is evident in their handling of players like Dimarco, Mkhitaryan, and even former goalkeeper André Onana. Onana, in an interview in late 2023, expressed his enduring love for Inter, even though he acknowledged Manchester United is a bigger club. Inter’s high-profile sale of Onana to Manchester United was a win-win situation, providing funds for the club and fulfilling the player's ambitions. This philosophy ensures that even players who leave the club do so with gratitude towards Inter.

Maintaining Tradition Amidst Change

Inter’s strategy in the new era involves careful financial management while preserving their century-old tradition of humanitarian care. The extensions of Dimarco and Mkhitaryan reflect this approach. Despite financial constraints, the club shows genuine concern for players who have given their all for the team. Money may be tight, but the club’s sincerity is evident.

The cases of Dimarco and Mkhitaryan highlight Inter’s commitment to balancing fiscal responsibility with humane treatment. For Dimarco, ensuring his contract extension aligns with his career peak shows the club’s consideration for his future. Mkhitaryan’s contract includes provisions that protect both the club and the player, ensuring mutual benefits regardless of future developments.

Inter’s strategy reflects a blend of financial pragmatism and a commitment to their players' welfare, maintaining the club’s esteemed tradition of humanitarian care. As Inter navigates the challenges of the new era, their approach to player contracts will be a crucial element in balancing on-field success with off-field stability.