Inter enters new era after Suning concedes champions to Oaktree

Inter Milan entered an uncertain new era on Wednesday after US fund Oaktree took control of the Serie A champion after outgoing owner Suning failed to pay hundreds of millions of euros in debt. .

Oaktree announced that it had “taken control” of Inter following the failure to repay a “three-year loan to Inter Milan’s holding companies which matured on May 21, 2024 with a total outstanding balance of approximately €395 million ($428 millions)”.

Chinese conglomerate Suning and president Steven Zhang ceded control of Inter to Oaktree three days after the team was officially crowned Italian champions for the 20th time.

Suning borrowed 275 million euros at interest rates of more than 12 percent three years ago to pay staff and players as the Covid-19 pandemic ravaged club finances across Europe, placing its controlling stake in the club as collateral.

Inter ended up in the hands of Oaktree in a similar way to how another US fund, Elliott Management, took control of its local rival Milan in 2018.

Elliott became owner of Milan when Chinese businessman Li Yonghong was unable to repay a loan he had taken out when he bought the club from the late Silvio Berlusconi’s Fininvest the previous year.

Inter became a powerful force at home and abroad after Suning acquired around 68 percent of the club in 2016, with seven trophies including two Serie A titles and two European finals.

Simone Inzaghi’s side cruised to this year’s championship, winning the Scudetto with five games to spare by defeating AC Milan in a thrilling local derby.

Oaktree, which manages $192 billion in assets, said it is “committed to working closely with Inter Milan’s current management team, partners, the league and governing bodies to ensure the club is positioned for success within and off the field.”

– Heavy losses –

However, Oaktree also suggested a period of belt-tightening could be on the way, saying they would work towards Inter’s “long-term prosperity” but “with an initial focus on operational and financial stability”.

Inter recorded losses of €85 million in the 2022/23 season, after even heavier losses of €140 million and €245.6 million in the two previous seasons, as stadiums were partially or completely closed due to the pandemic .

Talk of stability will inevitably lead to speculation about the future of some of Inter’s stars, including captain and top scorer in this season’s Serie A, Lautaro Martinez.

Zhang was widely reported to be negotiating an additional €430m loan with another US fund, Pimco, to pay Oaktree and complete extensions not just for Martinez but also Italian midfielder Nicolo Barella and Inzaghi.

But that deal never materialized and Zhang, who has not been to Italy for more than a year and lost a court case with China Construction Bank over personal debts worth 320 million euros, quietly ended his six-year presidency after criticizing Oaktree on Saturday for “putting at risk “Inter’s financial stability.

Argentine striker Martinez, whose current contract expires in 2026, told Gazzetta Dello Sport on Tuesday that he was waiting and wanted to sign a contract extension next week, but admitted that “the situation with the club could delay everything”.

“We are talking to (sporting CEO Giuseppe) Marotta and (sporting director Piero) Ausilio, but that depends on the owners,” Martinez said.

“Let’s wait and see, I don’t know what will happen between now and next week, but we have no problems.”

Inter finish the season in Verona on Sunday night, triumphant on the pitch but in an unpredictable position off it, having haemorrhaged money while racking up trophies.

td/pi