Investment firm Oaktree Capital Management has taken ownership control of Inter Milan, one of the biggest brands in global soccer, after Inter’s owner, Suning, failed to repay a loan due this week with a balance of €395 million ($427 million based on current exchange rates).
“We recognize our responsibility to Inter Milan’s community, history and legacy,” Alejandro Cano,co-head of Europe for Oaktree’s Global Opportunities strategy, said in a statement Wednesday morning. “We are committed to the long-term success of the Nerazzurri and believe our ambitions for the club are united with those of its passionate fans in Italy and around the world. Our initial focus is operational and financial stability.”
Cano said Oaktree has “great respect” for the current management team at Inter and will continue to work with them to guide the club. Oaktree had $192 billion in assets under management as of March 31.
Chinese conglomerate Suning bought 70% of the team in 2016 in a deal that valued Inter at roughly $400 million. Suning took a €275 million ($297 million) loan from Oaktree during the COVID-19 pandemic to shore up the club’s finances.
In 2022, Inter hired the Raine Group and Goldman Sachs to explore a sale of the team, and Suning wanted to at least match the $1.2 billion that RedBird Capital paid for AC Milan in 2022, according to multiple bankers familiar with the process.
Pimco had emerged as a possible savior for Suning to refinance the debt ahead of the deadline, but they could not reach an agreement.
On Saturday, Inter chairman Steven Zhang, the 32-year-old son of Suning founder Zhang Jindong, posted a letter to fans on the team’s website saying an agreement with Oaktree had been unsuccessful.
Total debt for Inter ultimately reached roughly $900 million, and potential investors were scared off by the high debt, continued operating losses and stadium uncertainty; the team’s historic home, San Siro, needs a massive renovation or a new building. San Siro is owned by the city, and Inter shares the stadium with AC Milan, which has made clear it wants to build a new venue for itself.
Inter Milan ran away with the Serie A title this season—their 20th overall—and reached the finals of Champions League last year, but the losses continued to pile up. Inter lost a combined $138 million after player trading during the 2021-22 and 2022-23 seasons.
Inter is the seventh Serie A club now under American ownership.
Asli Pelit contributed to this report.
