While speculation abounds about the future of Inter Milan, Oaktree will stay the course continuing to build value for the team, but particularly for their shareholders.
As of May 2024, Oaktree Capital Management, a global investment firm with a proven track record and $193 billion in assets under management, assumed control of Inter Milan.
This strategic acquisition which began through an onerous emergency lending to the former Chinese owners of Inter Milan.
And ended (as anticipated) with the Chinese default on its debts, aims to revitalize Inter Milan and ultimately generate a substantial return on investment for Oaktree.
Leveraging Serie A’s Ownership Rule
Italy’s Serie A has flexible ownership rules. These allow private equity firms like Oaktree to have majority ownership of football teams.
This provides a unique opportunity for Oaktree to leverage its financial expertise and operational experience to enhance Inter Milan’s value.
This is all happening at a time where US firms have majority ownership in 14 Italian football clubs, ranging from AC Milan in Serie A to Campobasso in Serie D.
Oaktree Ownership Of Inter Milan Brings Value Proposition
Oaktree brings a wealth of experience in strategic management and operational efficiency to Inter Milan.
Their expertise can streamline club operations, optimize communication, and align decision-making with strategic objectives.
Additionally, Oaktree’s vast network can facilitate the acquisition of cost-effective talent and expand the club’s trading reach into new markets.
A Focus on Stakeholder Relationships
Building strong relationships with key stakeholders, including club officials, players, fans (la curva), and sponsors will be crucial for Inter Milan long-term success.
Oaktree recognizes the importance of trust and collaboration in fostering a positive environment for growth.
However, it will have to get its hands dirty and manage a team that has deep roots in the Italian social fabric. And that cannot be managed as just another business.
The Nerazzurri are not only a corporation, but also a family with deep roots.
Furthermore, normally investment funds are not the best at balancing financial management with long term partnerships.
Inter Milan’s Untapped Potential
Inter is an undervalued asset with significant growth potential. While on paper it is among the best 5% performing team, its book value is below its competitors.
If Oaktree manages to have a balanced focus on operational efficiency, fan engagement, and strategic partnerships, it can increase the club’s value and prepare for a lucrative exit.
Don’t be fooled though, this will not be a quick turn-around. It should take at least 24 to 36 months for Oaktree to get its hands dirty and prepare for the fight.
Capitalizing on US Football’s Growth
With the FIFA World Cup coming to North America in 2026, and FIFA moving its regional headquarter to Miami, Oaktree can leverage its US ownership to strengthen partnerships, sponsorships, and technology investments with American entities.
Including, promote friendly tournaments between Inter and other American cities such as Miami, Los Angeles, and Denver.
This will drive revenue growth and position Inter Milan for long-term success.
Oaktree Can Expand The Inter Milan Fan Base
While Inter Milan boasts a passionate fan base of 55 million, there is significant room for growth. Inter competitors such as Manchester City, Liverpool and Real Madrid have all over 100 million fans.
In fact while Inter Milan is the only top team in the world not included in the top 10 most followed teams in the world.
Having said that, Oaktree has the chance to implement a nimble technology and fan engagement strategy to double their number of fans.
Subsequently, generating millions of dollars in revenue and building a much stronger international fans community.
Oaktree Can Balance Efficiency & Marketability At Inter Milan
Oaktree will certainly focus on cost optimization and operational efficiency while maintaining the team’s marketability and brand appeal.
This delicate balance will ensure that Inter Milan remains a competitive force on the pitch while expanding and retaining a passionate fan base.
Embracing The Local Culture
Understanding and adapting to the local culture is essential for building trust and rapport with stakeholders.
Oaktree should seek to engage with the broader Inter Milan community. Particularly in Italy to ensure their voices are heard and their interests are represented.
Conclusion
Oaktree’s investment in Inter Milan represents a significant opportunity for both the club and the investment firm.
By leveraging their expertise, network, and resources, Oaktree can revitalize Inter Milan. Thus increase the club’s value, and achieve a successful exit.
All while ensuring the club’s long-term sustainability and success.
By: Andrea Zanon
Andrea Zanon is the Founder of Confidente and Empower Capital. With 25 years of entrepreneurship, operations, sustainability and technology experience,
He is an international advisor who has worked for financial institutions and entrepreneurs on sustainability, international affairs and development.
