Inter Milan’s triumph in securing the Serie A title with a victory in the Milan derby has elevated their spirits, but they continue to grapple with off-field uncertainties despite their recent success.
Last season, Inter’s impressive journey to the Champions League final seemed like a singular occurrence for the club, which, like many other esteemed European teams, faces significant financial challenges compared to the wealthier Premier League and state-backed clubs such as Paris Saint-Germain.
However, even as Inter proudly dons a second star on their jersey to commemorate their 20th league crown, their off-field situation remains somewhat precarious.
For the past three years, Inter has been burdened with an emergency loan obtained from investment fund Oaktree. This loan, which must be fully repaid next month, reportedly accrues interest, resulting in a sum between 375-380 million euros. While Inter did not disclose the exact amount to AFP, the loan was acquired in 2021 when the club, like others in Italy, faced severe financial repercussions due to the Covid-19 pandemic.
Similar to what transpired with Milan in 2018 when Elliott assumed control, Oaktree has the potential to take over Inter if the loan is not repaid or refinanced by Inter’s Chinese owners, Suning.
Despite these challenges, Inter’s president, Steven Zhang, exudes confidence, as evidenced by his remarks at the Formula One Chinese Grand Prix on Sunday. He strongly hinted that he intends to remain as president beyond the summer, suggesting a determined stance in navigating the club’s current predicament.
“Every day there are rumours (about Suning selling)… What I can say is that we will continue to fight, continue to win,” said Zhang to Sky Sport on the paddock at the Shanghai International Circuit.
“None of the rumours are true. As long as I’m the president, as long as I’m the owner we’re going to continue to win.”
NEW DEAL
Zhang’s absence during the most significant game of Suning’s ownership era, aside from the Champions League final, is notable, as he has been away from Milan for several months.
An additional factor impacting Zhang is a recent court ruling against him in a case involving personal debts amounting to 320 million euros with China Construction Bank. Currently, he is engaged in negotiations to secure a reported 400-million-euro loan from another US-based fund, Pimco. The objective of this loan is to settle the outstanding debt owed to Oaktree and maintain Suning’s ownership of the club.
Contacted by AFP, Pimco said that they “couldn’t discuss ongoing negotiations”.
While opting for a new reported three-year loan that carries higher interest rates compared to the previous agreement with Oaktree, Inter Milan is essentially deferring their financial challenges. Nevertheless, the club anticipates a positive impact on their financial accounts due to strong performances on the pitch and successful transfers, which will help alleviate the financial strain experienced during the pandemic.
Inter recorded losses of 85 million euros in the 2022/23 season, following even more substantial deficits of 140 million euros and 245.6 million euros in the previous two seasons. The closure or limited capacity of stadiums due to the pandemic significantly contributed to these losses.
Furthermore, Inter’s president, Zhang, practically confirmed a contract extension for Simone Inzaghi, who has excelled in his managerial role under challenging circumstances since taking over from Antonio Conte three years ago. It is expected that Inzaghi will sign an extension until 2027, showcasing the club’s confidence in his leadership.
STADIUM UNCERTAINTY
Inter Milan is actively working on securing new contracts for their captain, Lautaro Martinez, and Italian midfielder, Nicolo Barella. Additionally, the upcoming summer transfer window is expected to be different from previous ones, as the club aims to maintain financial stability without the necessity of selling key players to balance their financial books.
“I’ve said many times that it’s a gift for me as president to work with a coach like Inzaghi,” added Zhang.
“He gives me confidence and keeps the environment calm and stable. We’re going to continue together.”
Inter Milan is currently in a state of uncertainty regarding their stadium situation. Previous plans to build a new stadium on the San Siro site in collaboration with AC Milan fell through last year.
However, Inter Milan has been actively pursuing an alternative stadium project in Rozzano, a town located south of Milan. The club’s corporate CEO, Alessandro Antonello, has emphasized that this project is their main focus, despite ongoing discussions with AC Milan and Milan city council about the possibility of renovating the current San Siro stadium.
Italian construction group WeBuild is currently conducting a feasibility study for the renovation, with the aim of completing it by June. The city of Milan hopes that the proposal will convince both clubs to remain within the city limits.
Mayor Giuseppe Sala has expressed concerns about the future of the San Siro if both teams decide to leave. AC Milan has already purchased land in the suburb of San Donato Milanese for their own stadium project, adding to the uncertainty surrounding the iconic stadium.
