Daily Reports
Oaktree Capital Becomes New Owner of Inter Milan
The American investment fund, Oaktree Capital Management, has officially taken ownership of Inter Milan, the Italian Serie A champions. This change in ownership comes after the Chinese group Suning, who had been the owners since 2016, failed to repay a debt totaling €395 million. The announcement was made via a formal statement, which highlighted that the funds managed by Oaktree Capital Management LP now own FC Internazionale Milano.
The loan, provided by Oaktree in May 2021, was intended to stabilize Inter's financial situation during a time when the club was recording significant financial losses for the 2020-2021 financial year. The emergency intervention allowed Inter to continue operating and fulfill financial obligations to its players and employees. Over the ensuing three years, Inter experienced a period of sporting success, winning two Italian Cups, three Super Cups, and their 20th Scudetto.
Oaktree emphasized that their immediate focus will be on ensuring operational and financial stability for Inter and fostering long-term prosperity. The fund intends to work closely with the current management team, partners, the league, and sports governing bodies to secure the club's success on and off the field, with a strong emphasis on sustainable growth and solid governance.
Transition and Future Plans
To ensure a smooth transition, Oaktree's management team will be in contact with Inter’s leadership in the coming weeks. The statement highlighted the fund's deep respect for the history of Inter, the passion of its players, and the loyalty of its fans. Oaktree aims to align with the ambitions of the club's supporters both in Italy and worldwide.
Steven Zhang, representing Suning since 2016, will be replaced as president by a new appointee from Oaktree. Zhang's tenure saw Inter securing seven trophies and reaching two European finals. Inter’s CEO Giuseppe Marotta and coach Simone Inzaghi, who led the team to a Serie A victory this season, will continue in their roles under the new ownership.
The final steps in the transition involve bureaucratic procedures to officially change the board. The shift in ownership signifies a continuation of Inter's stability in European football rather than a drastic policy change. Oaktree's prior experience in sports investment includes an 80% ownership of SM Caen and shares in the NBA’s Golden State Warriors.
The announcement was met with gratitude from the club’s supporters and players. Inter’s fans, particularly those in the Curva Nord, acknowledged Zhang’s contributions to the club’s history and expressed well wishes for his future. Similarly, messages of appreciation from players like Simone Inzaghi and Federico Dimarco underscored Zhang’s impact on their careers and the club's successes.
- Oaktree Capital Management's intervention in 2021 marked a pivotal moment for Inter Milan. The fund provided the necessary financial resources to stabilize the club during a time of record losses, ensuring continued operation and adherence to financial commitments.
- The loan agreement in 2021 was for €270 million with an annual interest of 12%, resulting in a total debt of €395 million by the maturity date on May 21, 2024. Despite efforts, Inter was unable to repay or refinance this debt, leading to the change in ownership.
- Steven Zhang, who became the youngest president in Inter's history at 26, played a significant role in the club's achievements over his six-year tenure, culminating in notable domestic and European successes. His departure marks the end of an era for the club but also opens a new chapter under Oaktree's leadership.
