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Inter Milan Hopes To Turn $152M Deficit Into Profit With New Five-Year Plan

One of Europe’s "most storied football teams" said that it has a plan to turn a €140M ($152M) deficit into a profit, "and fast," according to Tariq Panja of BLOOMBERG. If Inter Milan, an 18-time national champion and winner of three European Cups, "can pull off a turnaround, it will accomplish a rare feat." Few Italian football teams "win games and earn money at the same time." Inter CEO Michael Bolingbroke "drew up a five-year roadmap to profitability in 2014, and early reports suggest the financial engineering is working." The team, which recorded a €140M loss in the '14-15 season, will on Friday report a loss of about €60M for the '15-16 season, according to a person familiar with the club’s finances. Chinese retailer Suning Corp. approved of Bolingbroke’s vision enough to pay €270M "for a majority stake in the team in July." The new owners told the CEO, "I want you to be consistently in the Champions League. And I want you to make money. And your business plan says that within three years of my purchase, you will be profit positive? Great. Off you go." Inter’s plan "to raise revenue through sponsorships leans heavily on Suning," a Chinese juggernaut with annual revenues of more than $20B and more than 1,500 outlets. Bolingbroke said that the team can to get €20M ($27M)-a-year in deals "thanks to the retailer’s contacts in the world’s most-populous country, which has recently embarked on an unprecedented plan" to grow its football industry. Bolingbroke: "With the access they have we have an opportunity we simply didn’t have before they came along." Next month, the team will open a 12-person Inter sales office in Suning’s home city of Nanjing. That, Bolingbroke believes, "will lead to slew of regional sponsorship agreements and perhaps even a naming rights contract for its training apparel and its youth academy" (BLOOMBERG, 10/25).

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