A fresh new chapter is about to unfold for the Seria A giants, Inter Milan. The top-tier Italian club is now reportedly up for sale!
As reported by the Financial Times, Raine Group, a US-based boutique bank that handled the record-breaking £2.5bn auction of Chelsea this year is working along with Goldman Sachs to find a suitable buyer.
Inter has been under the ownership of Nanjing-based electronics retailer Suning, which acquired the club during a wave of investment from China in European football.
Suning’s economic troubles are the primary reason behind the decision to sell Inter. Aside from financial troubles, the retail giant is also facing major political backlash from the government sector as well.
Last year, Suning had to rush and raise new financing and capital source to fulfill the funding gap at Inter. This is due to the global coronavirus pandemic, resulting in a $275m loan from distressed debt specialist Oaktree Capital. Further assistance and relief came from Alibaba as a bailout, adding a mountain of debt to Suning.
Inter is currently led by Steven Zhang as President, He’s the son of Zhang Jindong, Suning’s founder who paid €270mn for a majority stake in Inter in 2016.
Inter’s latest set of accounts showed revenue increasing to €440mn and a loss of €140mn for the 2021/22 financial year. The club said that the majority shareholder “had formally expressed his commitment to backing the group by ensuring asset support”.
Due to the immense cash-strapped situation at Suning, the retail giant is now forced to sell Inter. The asking price is estimated to be 1 Billion USD.
The banks have declined to comment on the situation as reported by the Financial times.
Earlier this year, The US investment group RedBird Capital bought Inter’s city rivals AC Milan in a deal worth 1.2 billion which is a record for a European football club outside the English Premier League.
Italian football presents numerous challenges and is not one of the most pleasing ventures for investors. However, in recent times, teams like Roma, Atalanta, and Fiorentina have American owners.
Inter is the 15th most valuable football club according to Forbes. The Italian club is one of the most decorated Teams in Serie A and the world.
