Mayor Urges Inter to Secure Land for New Stadium: April Deadline Looms Amid Funding Challenges

In the past 24 hours, football has been buzzing with the seismic news of Kylian Mbappé informing Paris Saint-Germain that he will leave at the end of the season. This has sent ripples across the football world, impacting clubs beyond France. In Argentina, media speculation is rife that PSG sees Inter Milan’s captain Lautaro Martínez as a potential replacement for Mbappé. Through his agent, who also represents PSG’s Achraf Hakimi, contact has reportedly been made with Lautaro, but the player is said to prefer staying with Inter and extending his contract in Milan. This news has added a layer of complexity to Inter’s ongoing contract negotiations with their star forward.

Meanwhile, another significant development for Inter is brewing off the pitch. The mayor of Rozzano, Giovanni Ferretti, has urged Inter Milan to purchase land in his city for their new stadium before the end of April. This move is seen as a critical step in resolving the long-standing uncertainty over Inter’s new stadium project. Ferretti emphasized the importance of this acquisition, stating, “We are waiting for the strongest signal, which is the purchase of the land before the deadline. If they don’t let the priority right expire, it will be a very important signal.” The proposed site in Rozzano, a satellite city near Milan, is in a fan-friendly location close to the Olympic Center and the M2 metro line. The land, owned by the wealthy Bastogi family through the company Infrafin, spans approximately 1 million square meters.

Previously, Inter secured an exclusive agreement for a feasibility study for the new stadium and priority purchasing rights for the land. Inter’s financial CEO, Alessandro Antonello, is leading the feasibility study, with the club aiming to start construction in early 2025 and open the new stadium for the 2028-29 season. The Rozzano mayor’s push for Inter to buy the land by April 30 would signal a definitive commitment to the new stadium project and effectively abandon plans to renovate the iconic San Siro.

Ferretti, a long-time advocate for a major stadium in Rozzano, reiterated his commitment to the project: “For many years, I have hoped Rozzano would have a great stadium. We once again reaffirm our dedication to making this a success.” AC Milan’s recent acquisition of land for their new stadium in the San Donato area, marking a departure from the initial plan to build near the San Siro, has heightened the urgency for Inter. This move by AC Milan has also put pressure on the Milan City Council, which has recently proposed several measures to keep Inter at the San Siro, including offering the stadium’s usage rights at a discounted price of €100 million and easing restrictions on stadium operations.

However, the Milan City Council’s history of delayed approvals and empty promises has led many Italian journalists to view these new proposals with skepticism. The general sentiment is that relying on the council’s assurances could result in significant delays, potentially pushing the timeline for a new stadium to 2038-39 or beyond. Most stakeholders support the idea of Inter purchasing the Rozzano land, arguing that it would pave the way for a new stadium that could significantly boost the club’s revenue in the coming years. Currently, despite drawing crowds of over 70,000 to the San Siro, Inter’s earnings from the stadium are constrained by the City Council’s restrictions on commercial development and facility upgrades, putting them at a financial disadvantage compared to clubs with their own modern stadiums.

Financial Hurdles for Inter

The primary obstacle for Inter is securing the necessary funds to purchase the land by April 30. AC Milan’s recent acquisition of land for their stadium cost approximately €40 million, and it is expected that Inter will need to spend a similar amount. Financial analysts note that Inter faces two significant challenges. First, they must find a way to raise the funds for the land purchase by the April deadline. According to Inter’s plans, once the new stadium project is officially underway, the club intends to use the project as collateral to secure loans from banks or other financial institutions, facilitating the construction of the stadium. However, the initial funds for the land purchase must come from within the club’s resources.

For Inter, financial issues have been a recurring challenge. The new stadium, once operational, is expected to generate substantial revenue through naming rights, commercial development, and other income streams, potentially alleviating some of the financial pressures. Despite the need to service debt, the club’s financial outlook would improve significantly compared to the current situation, where revenue from the San Siro is limited by restrictive regulations and maintenance costs.

Additionally, Inter’s owner, Steven Zhang, faces the pressure of repaying a loan from Oaktree Capital by the end of May. Reports from Jiangsu indicate that Zhang’s family has been waiting for a possible interest rate cut by the US Federal Reserve, hoping to secure new financing to repay the Oaktree loan. However, with the outlook on interest rates remaining uncertain, the Zhang family is also preparing for an alternative option, negotiating a loan extension (riscadenziamento) with Oaktree, potentially at a higher interest rate, to defer repayment by 6 to 12 months. Regardless of the outcome, this financial maneuvering indicates that Inter is unlikely to face an ownership change this summer due to the Oaktree loan, contrary to speculation by some media outlets.

The pressing question now is whether Inter can secure the land for their new stadium before the priority purchasing right expires on April 30, laying a solid foundation for the club’s long-term development. This decision will be closely watched as it could have far-reaching implications for Inter’s future.

Impact of Mbappé's Departure on Inter

Adding to the complexity of Inter’s situation is the news of Kylian Mbappé’s impending departure from Paris Saint-Germain, which has sparked speculation about potential transfers across Europe. In Argentina, media reports suggest that PSG is considering Inter’s Lautaro Martínez as a possible replacement for Mbappé. Lautaro, who shares an agent with PSG’s Achraf Hakimi, has reportedly been approached about a move to the French capital. Despite this, Lautaro is said to prefer staying with Inter and extending his contract, a sentiment echoed by several journalists close to the club.

PSG’s typical transfer strategy of offering high salaries with low transfer fees presents a significant temptation for any player, and Lautaro’s potential move could complicate Inter’s contract negotiations. With Inter currently in talks to extend Lautaro’s contract, the added interest from PSG might influence the dynamics of the negotiations and potentially disrupt Inter’s plans.

In conclusion, Inter Milan faces a critical period with several key issues to address both on and off the pitch. The looming deadline to secure land for a new stadium and the financial challenges associated with this, coupled with potential interest in key players like Lautaro Martínez from clubs like PSG, will shape the club’s future direction. The decisions made in the coming weeks will have a lasting impact on Inter’s stability and growth prospects, both financially and competitively.