Serie A champions Inter have been taken over by a US based investment fund after the club’s owners missed a €395million payment.
Investment fund Oaktree Capital Management has taken ownership of Serie A champions Inter after a missed €395million payment from the club’s majority shareholder.
Granted by Oaktree in 2021 to the Luxembourg-based vehicle through which Chinese conglomerate Suning 002024.SZ controlled Inter, the loan was guaranteed by a stake in the club.
That gave Oaktree, which specialises in providing rescue funding to struggling firms, the potential right to take control of the club in the event of a default.
“Oaktree is committed to working closely with Inter’s current management team, partners, the league and governing bodies to ensure the club is positioned for success on and off the pitch,” it said in a statement.
A person close to the matter said Oaktree, which has only limited previous involvement in sports franchises, was not planning to sell Inter immediately and was prepared to be a “patient investor.”
The upheaval off the field contrasts with the club’s success on it, with Inter having last month secured their 20th Serie A league title and the second under Suning’s ownership.
There was no immediate comment from Suning, which bought a majority stake in the club in 2016 in one of the highest-profile forays by a Chinese business into European soccer.
Since then, Chinese authorities have imposed curbs over overseas spending in sport and Suning has been hit by the COVID-19 downturn.
That prompted Suning three years ago to get a €275m emergency financing package from Oaktree, which helped Inter to weather the pandemic crisis.
In a letter to fans published on the club’s website on Saturday, Inter chairman Steven Zhang, the son of Suning’s founder Zhang Jindong, warned the club’s stability was at risk as attempts to find an agreement with Oaktree had failed.
Oaktree’s move mirrors the takeover of Inter’s rivals Milan by U.S. hedge fund Elliott Management in 2018.
Elliott took control of Milan after Chinese businessman Li Yonghong missed a payment to the club.