Inter Milan has been taken over by the US investment fund, Oaktree Capital Management, following the default of the club’s outgoing owners, Suning, on a substantial debt repayment.
This development was confirmed on Wednesday, three days after Inter was officially crowned Serie A champions for the 20th time.
In a statement, Oaktree announced that it had “assumed control” of Inter Milan due to the non-repayment of a “three-year loan to Inter Milan’s holding companies that matured on May 21, 2024, with a total balance due of approximately €395 million ($428 million)”.
The Chinese conglomerate Suning, which took over Inter in 2016, borrowed €275 million at an interest rate exceeding 12 percent three years ago.
This loan, intended to cover operational costs including staff and player salaries amid the financial strain caused by the Covid-19 pandemic, was secured by their controlling stake in the club.
“Oaktree is dedicated to achieving the best outcome for the long-term prosperity of Inter Milan, with an initial focus on operational and financial stability for the club and its stakeholders,” the statement from Oaktree read.
Under Suning’s ownership, Inter Milan experienced a resurgence, winning seven trophies, including two Serie A titles, and reaching two European finals.
This season, Simone Inzaghi’s team clinched the Scudetto with five matches remaining, securing their title by triumphing over AC Milan in a thrilling local derby.
Oaktree, which manages $192 billion in assets, expressed its commitment to working closely with Inter Milan’s current management team, partners, the league, and governing bodies to ensure the club’s success both on and off the pitch.
“We are 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 on and off the pitch,” Oaktree stated.
Inter’s takeover by Oaktree mirrors the situation of their city rivals, AC Milan.
In 2018, US fund Elliott Management took control of Milan after Chinese businessman Li Yonghong failed to repay a loan used to purchase the club from former owner Silvio Berlusconi’s Fininvest the previous year.
