Oaktree ready to inject cash as Inter fail to make June capital gains

Oaktree Capital is set to inject cash into Inter Milan in the autumn after the club failed to record a capital gain in June.

This is reported by the Milanese newspaper Gazzetta dello Sport, via FCInterNewsThe newspaper notes that the Nerazzurri are expected to confirm losses of €40 to 50 million for the fiscal year that has just ended – but Oaktree sees no problem with that.

June has passed and Inter have not made any notable sales.

This means that the Nerazzurri did not record any capital gains in the transfer market in the financial year ending at the end of June under Oaktree’s ownership.

La Gazzetta notes that this is important because it shows that Oaktree did not push Inter to make sales.

From a financial point of view, the capital gains made in June would reduce Inter’s losses in the last financial year.

But as things stand, the Nerazzurri will record losses of around €40 to 50 million for the financial year.

It’s certainly an improvement over recent years, but it’s still a long way from the financial situation Oaktree wants.

Oaktree Capital ready to inject cash into Inter Milan – No rush for capital gains

La Gazzetta notes that the lack of sales in June shows the long-term nature of Oaktree’s plans for Inter.

The US-based fund is more than capable of covering some losses in the short to medium term.

This was not exactly the case with the previous owners Suning. The previous owners relied on their resources €Oaktree provides $275 million loan for liquidity injections.

But that loan is no longer a problem. Suning has defaulted and Oaktree has taken back its majority stake in Inter.

Therefore, notes the Gazzetta, the main debt consideration for Inter’s owners is now the club’s debt. €$415 million bond, maturing in 2027.

There is therefore no real urgency to address the issue of Inter’s obligations.

Oak have seen the gradual and constant financial improvements that Inter have achieved in recent years.

And Inter’s current owners are confident that this trend can continue.

Therefore, Oaktree is prepared to tolerate losses on a scale of €40 to 50 million for the first financial year that will end with them at the head of the government.

Obviously, this won’t be the case forever. Reports indicate that Oaktree is aiming for a balanced budget over the next two fiscal years.

For the time being, however, the owners prefer to inject money in the autumn rather than rush the club into sales.