Inter Milan is facing financial difficulties even after winning the Champions League final to complete the treble. According to The New York Times, Inter is the most indebted club in Italy, with nearly $1 billion in debt. They have incurred losses of over $400 million in the past two years and were fined $5 million by UEFA for breaching financial fair play regulations last year. Inter is also warned of a larger fine of around $25 million if their financial situation does not stabilize.
In 2021, the Suning Group had to agree to a $1.3 billion rescue package, partially funded by local authorities, to alleviate the mounting debt burden. Due to capital restrictions on withdrawing money from China and the impact of the COVID-19 pandemic, Inter had to sell Romelu Lukaku and Achraf Hakimi and part ways with coach Antonio Conte immediately after winning the Serie A title. Last season, Inter reported a loss of $150 million, following a record loss of $265 million the previous year due to stadium closures during the COVID-19 pandemic.
Additionally, Inter is seeking to complete the repayment of an emergency loan worth $294 million from Oaktree Capital investment fund, with a reported interest rate of 10%, taken by the Chinese owners Suning two years ago. In total, Inter has to repay approximately $400 million to Oaktree Capital within the next year. Failure to do so may result in Oaktree acquiring the club through a debt restructuring process, similar to Elliott Management's takeover of AC Milan from Chinese businessman Li Yonghong in 2018.
"Repaying the debt with the interest rate that Inter is paying to Oaktree is unsustainable," said former Inter CEO Ernesto Paolillo in May. "Inter's current president, Steven Zhang, will not be able to draw funds from the parent company in China, and he will also not be able to cover the debt with other resources. Zhang will have no choice but to default on the agreement and sell the club."
This season, Inter has gone several months without a shirt sponsor and has lost a significant source of income as DigitalBits, a cryptocurrency company, failed to make a payment of nearly $100 million as agreed.
In the Champions League final, Inter will feature the Paramount+ logo as the main sponsor, in a last-minute deal worth $5 million. With the same fee, the Paramount brand will appear on the back of Inter's jerseys next season.
Being present in Istanbul, Turkey, today provides Inter with an opportunity to earn additional revenue. If they defeat Manchester City, they will receive a $22 million prize for being the champions. If they finish as runners-up, Inter will earn $17 million from the final. However, this money only helps to address a small portion of the financial issues that have become severe over the past two years.
