Oaktree Capital Secures Ownership Of Inter Milan Following Payment Default
Investment fund Oaktree Capital Management has assumed ownership of Serie A champions Inter Milan following a missed €395 million payment from the club's majority shareholder. The loan, granted by Oaktree in 2021 to the Luxembourg-based vehicle through which Chinese conglomerate Suning controlled Inter, was guaranteed by a stake in the club. This arrangement allowed Oaktree to take control of the club in the event of a default.
Oaktree, known for providing rescue funding to struggling firms, has expressed its commitment to working closely with Inter's current management team, partners, the league, and governing bodies. The aim is to ensure the club's success both on and off the pitch. A source close to the matter indicated that Oaktree, which has limited previous involvement in sports franchises, does not plan to sell Inter immediately and is prepared to be a patient investor.
The off-field upheaval contrasts with Inter's on-field success. Last month, Inter secured their 20th Serie A league title, marking their second under Suning's ownership. Suning acquired a majority stake in the club in 2016, making one of the highest-profile investments by a Chinese business into European football. However, Chinese authorities have since imposed restrictions on overseas spending in sports, and Suning has been impacted by the COVID-19 downturn.
In response to financial difficulties, Suning secured a €275 million emergency financing package from Oaktree three years ago, which helped Inter navigate the pandemic crisis. Despite efforts to find an agreement with Oaktree, Inter chairman Steven Zhang warned in a letter to fans that the club's stability was at risk.
Oaktree's move is reminiscent of the takeover of Inter's rivals AC Milan by U.S. hedge fund Elliott Management in 2018. Elliott took control of Milan after Chinese businessman Li Yonghong missed a payment to the club.
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