Inter Milan Taken Over By Oaktree After Owner Fails To Repay Debt
The US-based fund manager took control of the team from China’s Suning Holding Group Co., after the Serie A defending champions’ owner failed to repay 395 million Euros.
Italy’s FC Internazionale Milano, better known as Inter Milan, has been taken over by Oaktree Capital Management LP, following the majority stakeholder's failure to repay a loan that matured on May 20.
The US-based fund manager took control of the team from China’s Suning Holding Group Co., after the Serie A defending champions’ owner failed to repay 395 million Euros, Oaktree said in a statement.
Suning had bought a majority stake in the club in 2016 to much ado. But in 2017, China imposed curbs over overseas spending in sport, and Suning was also hit by the Covid-19 downturn.
In 2021, Oaktree, which has around $192 billion in assets under management, provided the Chinese conglomerate with the rescue capital needed for the club to survive as it was hit by financial instability during the pandemic.
Documents signed at the time and seen by Bloomberg stated that following a default, creditors were entitled to “immediately and without demand, advertisement or notice of any kind”, enforce the pledge granted by Suning, including seizing collateral if repayment isn’t possible.
Between then and now, the club has won multiple tournaments, including its 20th Serie A win, where it defeated AC Milan, and ending as the runners up in the 2023 season of the UEFA Champions League.
"As new owners, we know our great responsibility towards the community and the historical legacy of Inter Mila,” Alejandro Cano, managing director and co-head of Oaktree’s global opportunities strategy for Europe, said in the statement.
“Our initial objective is the operational and financial stability of the Club. We have great respect for the Inter management and look forward to working closely with them to provide strong leadership to the Club.”
Suning had reportedly been in talks with Pacific Investment Management Co. to refinance its debt in recent weeks, according to Bloomberg. But a deal did not materialise before the Oaktree loan matured.
However, its takeover of Inter will be the second major instance of a US fund taking ownership of a club in Italy from a Chinese owner.
In 2018, Elliott Management swapped the debt of AC Milan into equity in the club, after the previous owner defaulted on its liabilities. It later sold the club to RedBird Capital in a 1.2 billion Euro deal.
