Capital Calls: Oaktree puts Inter Milan into financial extra time

  • 5/20/2021
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HOSPITAL PASS. Inter Milan’s on-pitch success has apparently not yet done much for its value. The Italian soccer team, who recently became domestic champions for the first time in 11 years, is close to securing a 275 million euro investment from Oaktree Capital read more , which will provide a loan to the holding company through which Chinese electronics retailer Suning controls the club, in return for a 31% equity stake from current shareholder LionRock Capital. That could value the club’s equity at around 887 million euros, a substantial drop from the over 1 billion euro valuation that majority owner Suning sought in negotiations with private equity firm BC Partners earlier this year. However, a mooted bumper league TV deal has gone nowhere. And empty stadia – matchdays accounted for a fifth of Inter’s revenue last year, according to Deloitte – combined with high salaries for players like Belgium’s Romelu Lukaku still weigh on the bottom line. Having a new deep-pocketed backer may at least help the Nerazzurri avoid nasty incoming tackles. (By Christopher Thompson) On Twitter http://twitter.com/breakingviews Earlier in Capital Calls: Qantas squirms in its first-class seat read more Retail sales’ wild ride read more Ryanair’s legal win lacks victory lap read more London offices shrug off pandemic strain read more A tale of two break fees read more

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