Know everything about the financial crisis at the San Siro as Inter Milan declare bankruptcy as liquidation looms after winning the Serie-A title after 11 years
China-based retailer Suning Commerce Group is in the middle of a financial crisis and is looking to sell the majority stake of the club which they acquired in 2016. Loss in revenue and a huge pile of debts have forced the Chinese organization to freeze the investment at Inter Milan.
Inter Milan Owner Embroiled In Colossal Debt
Inter Milan president Steven Zhang alongside his father Zhang Jindong, the founder of Suning Group, are owners of the Italian club and Chinese Champions Jiangsu FC (better known as Jiangsu Suning) which are currently under a huge debt.
Uncertainty about the future has tied the hands of the Chinese group leaving their finances stranded and pushing the investments away from the football. Strictness by the Chinese government on their Billionaires and the plan to promote Chinese football by withdrawing investments from Europe.
Inter Milan battling with Bankruptcy and liquidation amid future uncertainty
Suning group took over the club in 2016 when Inter Milan were struggling financially and over the past few years, the Chinese group has invested an estimated $845 million to drag the club out of debt. But, the shifting of resources from Europe to the Chinese League has tied their hand to limit their spending in Europe.
Meanwhile, the pandemic has disturbed the flow of the game because of no ticket sales which resulted in a significant loss of revenue. Italian football was already in financial ruin and the pandemic worsened the blow even more.
A similar situation happened with Chinese Champions Jiangsu FC which is owned by the Suning Group where the situation is worrisome as the staff and players have not been paid for 8 months. Inter Milan players and manager have agreed on a very big wage cut to help the club out in this difficult time.
Suning group were looking for an investor or even potential buyers to help out in this difficult time but a deal with London-based BC Partners could not be completed due to the €1billion valuation by the Chinese organization which was way higher than the €750million offer.
What does Inter Milan need to do as the club looks to offload a stirng of players
Italian club were looking for a €150m-€200m (£130m-£173m/$182m-$243m) loan which was provided by Oaktree Capital for €275 million which the Suning Group needs to pay over the course of 3-years with interest and if they fail, Majority stake of the club will go to Oaktree Capital who will become the new owners.
Inter Milan were in desperate need of money in order to generate some revenue following liquidity issues has forced them to sell their big players and highest-earners. Romelu Lukaku joined Chelsea for a transfer fee around €115million and Achraf Hakimi for €60million + €11million in add ons.
Tottenham are all set to acquire the services of Lautaro Martinez as well who will be leaving Inter Milan for a fees in the region of 60 million euros.
Meanwhile, the club is looking to sell most of their players in order to increase the revenue to maintain the financial stability of the club. They are hoping that with minimum wage bill and continuous cash-flow will help the club from financial bankruptcy.