By the end of February, Inter and Milan must present the Mayor of Milan with a financial plan for the construction of a new San Siro stadium. This is a key step in advancing the project.

Discussions underway with industry giants

Both clubs, through their owners, have reached out to large financial institutions to secure the necessary funding for the construction of this modern facility. Despite progress in the planning stage, there are still concerns about potential administrative appeals that could delay or jeopardize the project. The San Siro project remains at the center of a complex web of political, economic, and sports interests, with the shared goal of creating a modern stadium in Milan that meets the needs of both clubs and their fans.

We expect that by the end of February, Inter and Milan will provide us with a new economic and financial plan for the San Siro area, said Milan's mayor, Giuseppe Sala. The clubs are working hard to meet this deadline, which was set just a few days ago.

According to reports, Inter and Milan have already taken steps to secure financing for the new stadium. The clubs recently started discussions with large Italian and international banks regarding the project, which is estimated to cost between €1 billion and €1.5 billion. Among the institutions contacted are J.P. Morgan and Bank of America – two American financial giants connected to the countries of the clubs' owners. Banco BPM, the sponsor of Milan for over 10 years and previously the main banking partner of Inter, is also involved. Other entities may join the discussions in the future.

What will the investment cover?

The project plan includes the purchase of the San Siro area and adjacent lands – approximately 95,000 m² of buildable space – which have been valued by the Italian tax authorities at €197 million. After partial demolition of the second tier of the stands, the Meazza stadium would be transformed into a museum dedicated to the history of both clubs. The new stadium would be built on the current parking lot area, and the number of premium seating areas with catering services and additional amenities (hospitality) would increase from the current 3,000 on San Siro to around 10,000. Tim Romani, a RedBird consultant and stadium construction expert, is leading the project.

© Grzegorz Kaliciak

Legitimate concerns about excessive bureaucracy

The new infrastructure, combined with commercial spaces, is expected to generate a significant increase in revenue for Inter and Milan. Initial estimates suggest that the clubs could increase stadium-related income from €80 million to over €130 million annually for each of them. Such an increase in revenue would provide a solid guarantee for loan repayment, which, according to reports, has been met with a positive response from the surveyed banks.

However, financing is just one of the challenges of this project, perhaps even the easiest one to solve for investment funds like RedBird and Oaktree, which are experts in financial operations. The main obstacle remains administrative issues related to Italian bureaucratic procedures and the risk of appeals from associations and citizens' committees. In this area, American private equity funds have less experience and even less desire to get involved.

We are in full agreement that we want to sell the area and stadium before the summer holidays, said Mayor Sala. Decisive decisions on this matter are expected in the coming weeks.

Milan doesn't abandon the idea of building in San Donato

If the San Siro project is delayed or encounters too many obstacles, Milan is considering a Plan B in San Donato. The club has already spent €40 million to purchase a plot of land covering about 256,000 m². However, this alternative does not involve Inter, which, according to available information, is not interested in playing outside Milan.

© Grzegorz Kaliciak