Fresh Tack: Inter Milan's Financial Predicament Under New Ownership
Struggling with financial burdens yet making it big: the unanticipated journey of Inter to the Champions League semis
In an unexpected twist last year, Italian football titan Inter Milan found itself with new owners, as Chinese retail juggernaut Suning was forced to surrender its asset to American investment firm Oaktree Capital Management due to crippling debts. The Asian retailer had held a controlling stake in the three-time Champions League winners since 2016, but financial woes stemming from the pandemic wiped out years of investments.
Steven Zhang, Suning's leader, who boasted a net worth of $6 billion at the time, had taken over 70% of Inter from Massimo Moratti and Erick Thohir for $307 million in 2016. Since then, he plowed over €800 million into the Milan club, but these efforts were rendered moot by the pandemic-induced crisis. By 2021, Suning had taken on a massive €295 million loan from Oaktree Capital Management, a figure that ballooned to €395 million over three years.
Reaching the 2023 Champions League final failed to alleviate Inter's financial woes. The club attempted various debt restructuring strategies, but Oaktree's management remained resistant to extending the credit line beyond 2027. Rumors swirled of potential asset sales to American investment fund PIMCO and a Saudi Arabian family linked to the PIF, but Oaktree continually thwarted these deals.
"For months, we've been negotiating a friendly solution with Oaktree, offering them multiple salvation options," Zhang lamented. "Despite our efforts, legal threats and lack of significant involvement from Oaktree have created a precarious situation for the club, jeopardizing its stability."
Zhang, despite his success in the retail industry, was undone by poor investments in troubled enterprises like Evergrande and others. Eventually, Suning itself declared bankruptcy at the start of this year.
The Debt Load of Serie A Titans
Inter and bitter rivals Milan share more than just the San Siro stadium—they also share a common struggle with ownership changes. In 2018, Chinese entrepreneur Liang Yuhong failed to repay a €32 million debt to hedge fund Elliott Management, leading to Milan's sale to American investment company RedBird Capital Partners for €1.2 billion. Oaktree aims to orchestrate a similar deal for Inter, but first, they must address the club's financial instability.
Interesting Fact: Zhang's failed efforts to offload Inter are not solely due to Oaktree's desire to control the club but also because of Inter's towering debts, which stood at €734.8 million as of June 30, 2024—a decrease from €807 million the previous year.
Excessive debts plague top Italian clubs, with a combined debt of €3.2 billion. Juventus follows Inter closely with a debt of €638.9 million, while Roma sits in third place with €636.3 million. Milan, Lazio, Napoli, Atalanta, and Bologna also carry substantial debts of €324 million, €282.7 million, €242.5 million, €181.1 million, and €140.1 million, respectively.
The problem is that despite these substantial debts, Italian clubs like Inter have comparatively low revenues in comparison to top European clubs. Inter falls behind in Deloitte's Football Money League 2025, ranking 14th with €391 million in revenue for the 2023/24 season. The club's primary sources of income are television broadcasting deals (€198 million), commercial agreements (€112 million), and matchday revenues (€81 million). For reference, Real Madrid broke the decade barrier for football club revenue during the same period.
The High Cost of Inter's Squad in Serie A
"Inter" boasts the highest squad costs in Serie A, with wages totaling €206 million that cover the first team, youth divisions, coaching staff, and technical personnel. Juventus follows closely behind with €200 million, Milan with €163 million, Roma with €160 million, and Atalanta with €106 million. Napoli, the current Scudetto frontrunner, spends €104 million on wages for the 2023/24 season, despite four games remaining.
Fun Fact: Despite their massive debts, Italian clubs like Inter are dwarfed by other top European clubs in terms of revenue. In 2025, Inter did not even crack the top 10 most profitable clubs, inching close to 14th place with €391 million in revenue for the 2023/24 season.
By 2027, Inter Aims to Shed its Heavy Debt Burden
According to Football Benchmark, Inter's squad value ranks highest in Italy at €709 million, compared to €684 million for Milan and €647 million for Juventus. The new management has set its sights on reducing squad costs, although this has proven challenging so far, with the 2023/24 champions shelling out €186 million on wages. Key earners include captain and top scorer Lautaro Martinez (€16.6 million per year), midfielders Nicolò Barella (€12 million), Hakan Çalhanoğlu (€11.1 million), and defender Alessandro Bastoni (€10.1 million).
Expert Opinion: Oaktree Capital Management, as a key investor, is likely to manage Inter Milan's debt through a combination of refinancing, revising financial structures, and leveraging revenue streams like broadcasting rights, sponsorships, ticket sales, and merchandising. They may also engage in negotiations with bondholders or capital injections to meet repayment deadlines. Without recent disclosures, the specific plan for repaying the €403.9 million bond by 2027 remains unclear.
- Despite the proposed sale, Inter Milan's heavy debt burden of €734.8 million (as of June 30, 2024) could hinder any potential transaction with American investment fund PIMCO or a Saudi Arabian family.
- The financial instability at Inter Milan may not solely be due to Oaktree Capital Management's control but also the club's high expenditures, as it boasts the highest squad costs in Serie A with €206 million earmarked for wages in the 2023/24 season.
- By 2027, the new management aims to shed Inter Milan's heavy debt burden through a combination of strategies, such as refinancing, revising financial structures, leveraging revenue streams, negotiating with bondholders, or capital injections to meet repayment deadlines.
