Inter Milan is currently going through a transformative phase within Serie A, marked by new dynamics under the ownership of Oaktree Capital.
The U.S. investment firm that has taken on a crucial role in the club’s financial and strategic direction.
Amidst speculation about the club’s future, Oaktree’s strategy appears to focus on performance continuity, selective player acquisition, and the potential development of a new stadium.
This year dynamics within Serie A have shown that the league is highly competitive. Prompting Inter Milan to rethink its approach.
As Inter adapts to these new challenges, the club must not only maintain its standing but also enhance its overall value.
Oaktree Capital’s strategy seems to lean away from the high-stakes spending associated with the acquisition of superstars. Something often linked to wealthy investors from the Gulf.
Instead, they are adopting a leaner and more prudent approach, seeking to cut costs and acquire undervalued players who can be developed and resold for a profit.
All while boosting Inter’s assets valuation.
This method aligns with the goal of long-term financial stability. And furthermore, ensures that the club can remain competitive on the pitch without excessive financial risk.
Oaktree Capital’s Vision For The Future Of Inter Milan
A significant aspect of Oaktree’s plan involves the construction of a new stadium. This endeavor represents an opportunity for Inter Milan to increase its revenues, boost its valuation.
Subsequently, to provide the team and its global fanbase with a true home—something that has been a long-standing issue for the club.
Despite the challenges posed by Italy’s complex bureaucracy, Oaktree will do everything possible to push this project forward.
Of course, recognizing its potential to significantly enhance revenue and fan engagement while placing Inter on the global map of top financial performers.
Stadium naming rights (not very common in Italy) is just another revenues example that with a new stadium the team could rely on.
Financially, Inter Milan is grappling with a considerable debt burden, estimated at around $800 million.
Success In Champions League Could Be The Key For Inter Milan
Oaktree’s approach will likely include strategies to mitigate this debt. With a strong focus on maintaining leadership in Serie A while achieving success in the Champions League.
Winning this prestigious tournament could inject over $100 million into the club’s coffers. A windfall that would greatly assist in debt reduction and further investments to make the squad invincible.
While fans may perceive Oaktree as hesitant to invest at the level seen with some foreign ownership groups, the reality is more nuanced.
The investment firm is expected to spend, but with a selective and strategic mindset. Don’t expect big newsworthy acquisitions announcements.
This approach contrasts sharply with the more lavish spending strategies that some might expect from a new owner.
However, it reflects a commitment to sustainable financial growth rather than short-term flashes of success.
Looking ahead, Oaktree Capital’s restructuring efforts will likely involve negotiating and forming strategic partnerships with wealthy investors.
Particularly from Saudi Arabia, Qatar, and the Emirates. These investors tend to have longer-term investment horizons.
They view Italian assets like Inter Milan as strategic ownership opportunities. Opportunities which can align with their countries’ long-term growth strategies and vision.
Oaktree Capital To Continue Focusing Diligently On Debt Management
In conclusion, as Inter Milan seeks to remain among the top 5 teams in the world within a fiercely competitive Serie A, expect Oaktree Capital to focus on diligent debt management and infrastructure development.
While immediate results may not mirror the spending sprees of other clubs, such as those seen with Saudi investments, the long-term vision aims to establish Inter Milan as a formidable force both on and off the pitch.
Patience and strategic planning will be essential as Oaktree works to reshape the club’s fortunes. All whilst ensuring that the storied club can thrive in a competitive environment.
A Champions League victory, could be a game changer for Inter as Oaktree may have the incentive to accelerate its exit plans.
By: Andrea Zanon
Andrea Zanon is the co-founder of Confidente. He is an international advisor who has worked for financial institutions and entrepreneurs on sustainability, international affairs and development.
