Inter Milan's Financial Resurgence: Navigating Through Challenges and Emerging Stronger
Feb 13, 2025 at 7:52 PM
After a tumultuous period marked by financial turmoil, Inter Milan has emerged as a club that not only stabilized its balance sheet but also laid the foundation for sustainable growth. Under the stewardship of Oaktree Capital, the Nerazzurri have managed to cover 90% of their losses and are now focusing on long-term strategic planning. This transformation is crucial in understanding how the club navigated through unprecedented challenges.
A New Era of Stability and Growth Awaits Inter Milan
The Impact of the Pandemic on Football Finances
The global pandemic brought unprecedented disruptions to football clubs worldwide, with Inter Milan feeling the brunt of these financial pressures. The Chinese retail giant Suning, which owned the club, faced its own financial struggles, exacerbating the situation. As revenues plummeted due to lockdowns and restrictions, Inter found itself grappling with heavy operating losses starting from 2020. The club's financial health became a pressing concern, leading to significant changes in ownership and management strategies.Despite these challenges, Inter Milan did not falter. Instead, it sought innovative solutions to stabilize its finances. In the spring of 2021, Suning secured a substantial loan from North American fund Oaktree Capital, using their shares in Inter as collateral. Although refinancing efforts were unsuccessful, this move allowed the club to weather the storm temporarily. Ultimately, control of Inter Milan transitioned to Oaktree Capital in May 2022, marking the beginning of a new chapter for the storied club.
Oaktree Capital's Influence on Inter's Financial Rebound
Under the guidance of Oaktree Capital, Inter Milan has made remarkable strides in addressing its financial issues. Italian finance expert Marco Bellinazzo highlighted that the club has largely resolved its balance sheet problems. He emphasized that Inter's financial recovery was particularly notable after the pandemic and the departure of Chinese ownership. With solid ownership and a long-term vision, Inter is now positioned for sustained success.Bellinazzo pointed out that Inter's 2024 balance sheet boasts record revenues of €470 million, with losses reduced to €36 million. While the club still carries a high debt burden, requiring an annual interest payment of €30-40 million, these figures indicate significant progress. Inter's ability to manage its finances effectively has enabled it to emerge from the pandemic in relatively good shape, especially compared to other clubs facing similar challenges.
Addressing Misconceptions and Ensuring Regulatory Compliance
Rumors about Inter Milan's potential difficulties in registering for Serie A due to financial issues have been circulating. However, Bellinazzo dismissed these concerns, stating that there is no evidence to support such claims. Inter utilized the same emergency rule-changes available to all clubs during the pandemic-related financial crisis, allowing them to defer covering their losses. Consequently, 90% of these losses have already been addressed, placing the club in a strong position to comply with league regulations.Moreover, Inter adheres to strict parameters concerning debt, wage bills, and registration, ensuring compliance with both domestic and European standards. The club signed a settlement agreement in 2022 and has consistently met its obligations. Bellinazzo also noted that Inter will adhere to UEFA's new golden rule, limiting spending to no more than 70% of revenues on player wages, transfer fees, and agent fees. For Inter, this figure stands at approximately 60%, indicating responsible financial management.
Building a Sustainable Future for Inter Milan
As Inter Milan continues to rebuild its financial foundation, the focus remains on long-term sustainability. The club's journey from financial distress to stability underscores the importance of strategic planning and adaptability. Under Oaktree Capital's leadership, Inter has not only stabilized its balance sheet but also set the stage for future growth. By respecting financial regulations and maintaining prudent spending practices, Inter Milan is poised to thrive in the competitive landscape of European football.While there is always room for improvement, the club's resilience and commitment to responsible financial management have earned it a solid reputation. As Inter looks ahead, it does so with confidence, knowing that its past challenges have paved the way for a brighter future.
