Official – Oaktree Capital Take Control Of Inter Milan From Suning | OneFootball

Oaktree Capital have taken over Inter Milan after repossessing the shares of the club’s previous owners Suning.

The US-based fund announced their takeover of the Nerazzurri in an official statement, via FCInterNews.

For the past eight years, Suning have been the owners of Inter.

The Chinese company completed a takeover of the club on June 6th, 2016 when they acquired the shares of previous club owner Erick Thohir.

Since then, Suning have been the helm of the Nerazzurri.

It has been a tenure that has seen quite a few ups and downs for Inter.

The last eight years have seen an upward trajectory in terms of results on the pitch.

Inter have won seven trophies under Suning’s ownership, culminating in this season’s Serie A title. That is the second league title that the Nerazzurri have won under Suning’s ownership.

Meanwhile, the Nerazzurri also reached the final of both the Europa League and the Champions League.

But off the pitch, there have been financial problems.

The loss of revenues during lockdown after the start of the COVID-19 pandemic caused a major liquidity crisis at both Inter, and the parent company of Suning.

Therefore, in the spring of 2021, the Inter owners took on a substantial loan from Oaktree.

The US fund lent Suning €275 million, which the outgoing Nerazzurri owners have used to cover operating expenses at the club.

Oaktree Take Control Of Inter Milan From Suning

The compounding interest rate on that loan from Oaktree to Suning was set at 12%.

Therefore, Suning owed Oaktree a total of close to €400 million including interest.

Yesterday was the final day for the Chinese company to repay that debt in full. And they were unable to do so.

Despite negotiations with another US-based fund, PIMCO, to secure a new loan with which to refinance their debt to Oaktree, Suning were unable to get that loan over the line.

Therefore, Suning defaulted on their debt to Oaktree.

As part of the terms of the agreement with Oaktree from 2021, Suning put their controlling stake in Inter up as collateral.

Therefore, with Suning having defaulted, Oaktree have the right to repossess those shares.

And the US fund have confirmed that that is exactly what they intend to do.

Oaktree announce that they have begun the process of becoming the new owners of Inter.

Reports suggest that the takeover will take around 15-20 days to be complete.

The current Inter board will have to step down. And then, a new board will be elected – and a new President selected to replace Steven Zhang.

May 22nd The Beginning Of A New Era At Inter

Oaktree made an official statement regarding the takeover.

They begin, “Starting May 22nd, 2024, funds managed by Oaktree Capital Management, LP, have become owners of FC Internazionale Milano.”

“This follows from the failure by Inter’s holding companies to repay a three-year loan that Oaktree had guaranteed.”

“This loan expired on May 21st, 2024, with a total balance of €395 million.”

“In May of 2021, with Inter on track to record financial losses for the financial year of 2020-21, Oaktree provided Inter’s holding companies with the necessary resources to stabilize the club’s financial situation, and this to continue to operate.”

“Also guaranteeing the payment of players and empoloiyees.”

“In the three years since Oaktree’s emergency surgery, Inter have won their eighth and ninth Coppa Italia. Secured their sixth, seven, and eighth Supercoppa Italiana.”

“And won their twentieth Scudetto, and with it the historic second star.”

“As well as reached the final of the UEFA Champions League for the first time since 2010.”

“Oaktree is dedicated to achieving the best possible outcome for Inter’s long-term prosperity,” the statement makes clear.

“With an initial focus on the operational and financial stability of the club and its shareholders.”

The statement continues, “Oaktree has great respect for the history of Inter. The passion of the players. The loyalty of the Inter fans.”

“It also holds in great consideration for the significant role that the club has within the city of Milano, Italy. And for the global sporting community.”

“Oaktree intends to work closely with Inter’s current senior management team,” the statement continues.

“And with all partners, the leageue, and the sport’s governing bodies. To make sure that the club is positioned for success on and off the pitch.”

“Focusing on strong management and governance, with a vision for sustainable and successful growth.”

Oaktree Managing Director: “We’re Committed To The Long-Term Success Of Inter”

Oaktree’s Managing Director Alejandro Cano also made a statement concerning the fund’s takeover of Inter.

He commented that “As the new owners, we know our great responsibility towards the community and historical legacy of Inter.”

“We’re committed towards the long-term success of the Nerazzurri,” he continued.

“And believe that our ambitions for the club are linked to those of its passionate fans, both in Italy and around the world.”

Cano made clear that “Our initial objective is the operational and financial stability of the club.”

Moreover, the Oaktree Managing Director stressed his respect for the existing senior management of Inter. This includes CEO Beppe Marotta.

“We look forward to working closely with them to provide the club with strong leadership,” he said.

“Winning the second star was a crucial moment for this club,” Cano said.

“And our goal is to keep the success on the pitch going, with a path for long-term growth and success.”