US fund Oaktree has assumed ownership of Serie A club Inter Milan after the failure of previous owner, Suning, to meet a deadline for repaying a debt totaling hundreds of millions of euros.
Oaktree’s announcement stated that they had taken over control of Inter Milan due to the non-repayment of a three-year loan to the club’s holding companies. The loan matured on May 2, 2024, with an outstanding balance of approximately 395 million euros.
Following the development, Chinese conglomerate Suning has ceded control of Inter Milan to Oaktree. Interestingly, this transition occurred just three days after Inter Milan was officially crowned Italian champions for the 20th time.
Suning borrowed 275 million euros at an interest rate of over 12% three years ago to cover expenses for staff and players during the financial strain caused by the Covid-19 pandemic, which severely impacted the finances of clubs across Europe.
Suning had put up their controlling stake in the club as collateral for the loan.
“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,” Oaktree announced.
Since Suning’s acquisition of the club in 2016, Inter Milan emerged as a dominant force both domestically and internationally, securing seven trophies, including two Serie A titles and reading two European finals.
Under Simone Inzaghi’s leadership, Inter Milan clinched this year’s championship with ease, securing the Scudetto with five games to spare after a thrilling derby victory over AC Milan.
Oaktree expressed their commitment to collaborating closely with Inter Milan’s current management, partners, and governing bodies to ensure the club’s success on and off the field.
The transition of Inter Milan’s ownership to Oaktree mirrors the scenario of another US fund, Elliot Management, taking control of their local rivals Milan in 2018. Elliot assumed ownership of AC Milan when Chiese businessman Li Yonoghong failed to repay a loan he had secured during his acquisition of the club from Silvio Berlusconi’s Finivest the previous year.
