The Rise and Fall of Inter Milan: A Chinese Billionaire’s Football Dream
The Rise and Fall of Inter Milan: A Tale of Wealth, Power, and Debt
In the world of football, the story of Inter Milan is one that captures the highs and lows of wealth, power, and ultimately, debt. The tale begins with Chinese retail billionaire Zhang Jindong’s acquisition of the club in 2016, a move that was seen as a bold step towards global expansion and success.
Zhang wasted no time in appointing his son, Zhang Kangyang, also known as Steven, to a key role within the club. With a background in finance and a taste for luxury, Steven quickly made his mark, both on and off the pitch. From driving a $3 million sports car to rubbing shoulders with the elite at high-profile events, Steven seemed to embody the glitz and glamour of football ownership.
Under Suning’s ownership, Inter Milan saw success on the field, winning two league titles and reaching the Champions League final. However, behind the scenes, trouble was brewing. Suning’s financial troubles in China, exacerbated by investments in the real estate market, soon began to impact the club’s operations.
As sponsorship payments dried up and debts mounted, Inter Milan found itself in a precarious position. Despite efforts to secure new investors, including private equity firm BC Partners, a viable buyer could not be found. It was then that Oaktree Capital Management stepped in, offering a lifeline in the form of a €275 million loan.
The loan came with a hefty 12% coupon and ownership of the club as collateral, highlighting the dire straits that Inter Milan found itself in. Despite a good run in the Champions League and new sponsorship deals, the club continued to hemorrhage money, with losses reaching over €650 million under Suning’s ownership.
In the end, the dream of footballing success and global expansion turned into a nightmare of debt and financial ruin. As Suning lost control of Inter Milan, the story of the club serves as a cautionary tale for other football clubs seeking to balance ambition with financial stability.
The rise and fall of Inter Milan is a reminder that in the world of football, success on the pitch is only part of the equation. Behind the scenes, financial decisions and ownership structures can have a profound impact on the future of a club. As the footballing world continues to evolve, the story of Inter Milan serves as a stark reminder of the perils of unchecked ambition and unsustainable debt.
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