According to the report of "Milan Sports Newspaper", Zhang Kangyang, as the chairman of Inter Milan Football Club, (a good place to watch football: live broadcast and replay of sports events are free to watch| Link3) is currently in discussions with Oaktree Fund for a significant loan extension agreement. At the heart of the agreement is the extension of principal and interest on loans totalling up to 375 million euros, which were due to expire in May this year.
Originally, Zhang Kangyang expected to extend the repayment period of the loan to 2027 and was willing to accept a higher interest rate. However, while Oaktree is open to extensions, they prefer to extend the loan tenure by only one to two years. The change may have put some pressure on Inter's management team, but it also gave them more time to execute the club's restructuring plan.
It is worth mentioning that Inter Milan faced a deficit of up to 245 million euros in 2021, but after a series of efforts, the club expects to significantly reduce this figure to 40 million to 50 million euros in the next financial year. The Oaktree Fund expressed its satisfaction with Inter Milan's improved financial situation, which also provided a good basis for negotiations on the extension of the loan.
In addition to the financial issues, the extension agreement will also have an impact on Inter Milan's new stadium project. The club plans to build a new stadium in the Rozano area, while also considering a proposal from the Municipality of Milan to renovate the Meazza Stadium. The completion of the new stadium is expected to significantly increase the overall value of the club, which is an important reason why Zhang Kangyang values Inter Milan at no less than 1.2 billion euros.
However, while Inter Milan are actively looking to improve their financial situation and move forward with the new stadium project, no potential buyers have yet approached or conducted due diligence. The Oaktree Fund may want to push the club to attract new investors during this period by extending the loan term only for a shorter period. Goldman Sachs Group Inc. is expected to play a helping role in this regard, helping Oaktree Fund or Zhang Kangyang find potential investors.
Inter Milan's two main principles in the transfer market this summer are also worth watching. The club will ensure financial self-sufficiency, balance its payments and not reduce its total salary. This strategy paved the way for the club to negotiate contract extensions with key players such as Lautaro and Barella, helping to stabilize the squad and enhance competitiveness.