by Elvira Pollina
MILAN (Reuters) – American investment fund Oaktree Capital Management said on Wednesday it had taken control of Inter Milan, the Italian football champions, after a default of 395 million euros by the Chinese majority shareholder of the club.
Oaktree had granted a loan in 2021 to the holding company based in Luxembourg through which the Chinese conglomerate Suning controlled Inter Milan.
The American company, specialized in granting rescue funds to companies in difficulty, thus had the right to take control of the club in the event of failure.
“We are firstly focused on operational and financial stability. We have a lot of respect for the Inter Milan management team,” said Alejandro Cano, managing director and co-head of Europe for the Global Opportunities strategy of Inter Milan. Oaktree.
This operation echoes the takeover of AC Milan, local rival of Inter, by the American hedge fund Elliott Management in 2018. Elliott took control of AC Milan after the man’s payment default. Chinese businessman Li Yonghong.
Elliott ultimately sold AC Milan to RedBird Capital Partners in 2022 for €1.2 billion.
Oaktree has no immediate plans to sell the club, a source close to the matter said. Oaktree will be “a patient investor,” the source added.
Inter won their 20th Serie A title last month, their second under Suning.
Founded in 1908, Inter Milan is one of the most famous clubs in Italian football and counts among its ranks top players such as Frenchmen Marcus Thuram and Benjamin Pavard.
Suning acquired a majority stake in the club in 2016.
Chinese authorities have since imposed restrictions on foreign spending on sports and Suning has been hit by the COVID-19-related downturn.
In a letter to supporters published on the club’s website on Saturday, Steven Zhang (32), president of Inter Milan and son of Suning founder Zhang Jindong, warned that the club’s stability was threatened by the failed attempts to reach an agreement with Oaktree.
Suning had no immediate comment. Inter Milan recorded an annual loss of 86 million euros in the 2022-2023 fiscal year and their total debts stood at 807 million euros.
(Reporting by Elvira Pollina and Elisa Anzolin, Vincent Daheron, editing by Kate Entringer)
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