Inter Milan, the esteemed Italian football powerhouse, currently ranks as one of the top five best performing European teams, but are at a financial crossroads.
Nationally, Inter continues to lead the Series A, where Juventus, the second ranking team, is struggling to keep up. Despite Inter’s impressive on-field achievements and favorable prospects in the Champion’s League, the club finds itself grappling with staggering debt.
Adding to the complexity of Inter Milan’s finances is the impending bond repayment deadline of May 2024. The club’s majority owner, Suning, and the Zhang family, a Chinese investor holding a 70% stake, is facing the need to repay a substantial $400 million loan (approximate figure) to OakTree Capital, the US investment fund that provided crucial financial support two years ago, with a substantial annual interest rate of 10%. Numerous potential investors have been rumored to express interest, but the steep asking price of $1.3 billion by the Chinese owners has deterred any concrete agreements (these numbers are the team’s valuation that was reported at the end of 2023 by different media sources).
As the repayment deadline approaches, Inter Milan stands at a crucial juncture where strategic decisions must be made to avoid potential loss of control. Which could possibly result in a full American ownership of the team.
Inter Milan At A Financial Crossroads
Several viable alternatives for investors have surfaced, including the Saudi Public Investment Fund (PIF), the Qatari Investment Authority, Bahrain Investcorp, and the Emirati powerhouse Mubadala. PIF, known for its assertive investments in sports, especially football, has made notable acquisitions of top-tier players and coaches.
It has invested massively on football since 2021 to acquire players such Ronaldo, Benzema, Neymar, and Mane, to privatize 3 of its league’s top teams, and to invest in stadium infrastructures. It is also investing robustly to secure the FIFA world cup in 2034. Qatar, owner of Paris Saint-Germain, recently expressed interest in acquiring Manchester United, and in 2022 has successfully hosted the FIFA World Cup which cost the Al-Thani Family (the royal leadership) US$ 220 billion. Bahrain, the least football assertive GCC country, has been on the lookout for sport assets through its Investcorp. Its appetite for acquiring Italian football teams seemingly increases.