New Inter Milan Set to Increase Revenue by €33 Million: Why Zhang Kangyang is Being Missed

With Inter Milan officially announcing that Oak Tree Capital now controls 99.6% of the club's shares, the Nerazzurri have embarked on a new era. Alejandro Cano, Oak Tree Capital’s Global Opportunities Strategy Manager and Co-Head of the European Division, has already made clear that the new Inter Milan will initially focus on “club operations and financial stability” primarily through “enhancing the team's revenue.” This is not just empty talk. Inter Milan is poised to implement changes that could increase revenue by at least €33 million.

One significant change is the new sponsorship for Inter's training facility. The official bank partner of Inter Milan will replace Suning as the new sponsor of the training ground, with a sponsorship fee of €3 million. The training base will no longer be known as the “Suning Training Center.” In European football, it’s common for sponsors who name training bases to also have their logos on training kits and sometimes on matchday kits. However, it is not yet confirmed if BPER’s sponsorship includes the training kits.

On Western social media, the €3 million price tag has sparked some debate, with many considering it too low. To put it in perspective, compare it to Manchester United. In 2013, their Carrington Training Complex sponsorship deal was worth £180 million over eight years, a deal made 11 years ago. For Inter Milan, from 2017, Suning’s naming rights deal included two periods: from 2017 to 2020, Suning invested heavily, including advertising space on training kits; after 2020, Suning stopped financial support but retained naming rights. According to official financial reports, from 2017 to the present, Suning spent a total of €110 million on naming rights for Inter's training base and training kits. In comparison, selling the naming rights for €3 million now seems quite low.

Many see this revenue increase as part of the new management’s agenda – akin to Rafa Benitez removing all images of José Mourinho when he first arrived at Inter after the treble-winning season. Most Inter fans, including myself, are pragmatic about this: erasing the previous regime's marks is understandable. If I were in that position, I might do the same. After all, to make a difference, you must look forward. Inter fans didn’t dislike Benitez just because he removed Mourinho’s images; it was primarily due to poor performance. As long as Oak Tree Capital leads the team to success, these are minor details.

The second major change is the anticipated announcement of new season ticket prices. According to several beat reporters, Inter Milan is expected to significantly increase ticket prices, with some season tickets potentially seeing a 40% hike. Increased season ticket prices will likely lead to higher individual match ticket prices, especially for high-profile matches, potentially creating an additional €30 million in revenue. However, this is still speculative as the impact on sales and attendance remains to be seen.

Economists have long urged Inter Milan to raise ticket prices, citing basic market principles: prices should reflect market demand. For several seasons, Inter Milan has boasted Serie A’s most fervent home crowd, with high-profile matches (like derbies and key Champions League fixtures) frequently selling out. Given this demand, raising ticket prices aligns with economic logic. However, it’s worth noting that both the Moratti and Zhang eras only saw occasional significant price hikes for individual games, never a 40% increase in season ticket prices. The reason is simple: season ticket holders are typically local die-hard fans who have supported the club for years. Inter’s season tickets are always in high demand, leading to a “queue system” that ensures most season tickets go to long-term fans. These supporters are considered the club’s “core base.” For years, Inter has respected these loyal fans when setting prices, viewing it as a tradition. Breaking this tradition shows the new ownership's tough stance.

According to Italy’s Ministry of Finance, the country’s GDP growth in 2023 was a modest 0.8%, with disposable income not increasing significantly and inflation rates remaining high. In this economic climate, low- to middle-income groups are less affluent than in previous years, making a substantial ticket price increase controversial. On Western social media, many voices argue that a 40% price hike will make fans nostalgic for the Zhang Kangyang era. For many Milan residents, watching Inter every week is an essential part of life, and season tickets are seen as a “necessity,” making them sensitive to price changes.

How this will unfold remains to be seen. Personally, I believe there are both advantages and disadvantages for the team. Ultimately, Inter Milan is still a club that has not achieved financial balance and remains far from profitability. Despite decent performances over the years, Inter has consistently posted deficits, largely due to the inability to significantly increase revenue. Against this backdrop, any effort to boost revenue is positive. However, balancing revenue growth with respecting traditions and avoiding alienating fans is a delicate task. Finding a compromise between revenue-generating changes and historical traditions is essential.

For the current Nerazzurri, both revenue growth and cost reduction are crucial. Even if specific measures may be contentious, any attempt to improve the financial situation is positive.