The Suning Commerce Group

[ADRossi]

So as I understand they basically ruined club so bad that no one will, wont or can buy it. These guys are like Chicxulub impactor.

They've managed to increase our value quite a bit because our revenue increased - primarily due to the return to the UCL. That was all caused by their pre-pandemic sugar daddy investments.

Now we're saddled in debt from a vulture fund, are on the cusp of losing UCL revenue, and have no meaningfully legitimate sponsorships.

 

[CafeCordoba]

Yeah. They got us out of banter era levels. Now they are slowly bringing us back there. Mortgaged our future to get back at the top. Covid and Chinese policy (well in reverse order) changed it all but their mistake, in club perspective was to not let it go soon enough.

Now the fear is they will cut their losses by liquidating the assets from the club, ie. the players which have some meaningful value. And then they will sell. Asking price will be lower but buyers will probably not even care. The initial price is probably more important than what they gonna get.

Now it looks buyer won't get a CL club, with good sponsorships signed so Zhangs might aswell monetize the assets so they don't have to cover so much losses (Oaktree loan money used for this). They will have more money in their hands that way.

Stadium deal might change things but as we've followed that Cathedral project for 3 years now, nothing points to the direction it would get signed anytime soon.

 

[bubba zanetti]

" Investcorp Looking To Put Together Group Of Bahrain Investors To Buy Inter Milan From Suning.

Global investment fund Investcorp is currently putting together a group of Bahrain based investors before moving in to try to buy Inter Milan from Suning.

This according to today’s print edition of Turin based TuttoSport, as reported via FcInterNews, who report that negotiations with Suning over Inter Milan are at very preliminary stages.
Before moving forward with the negotiations, Investcorp want to first put together a group of investors based in Bahrain.
As such, the report continues, the investment fund have decided not to release any comments pertaining to the matter.
This follows reports elsewhere in Italian media which suggest that Investcorp, who publicly declared an interest in buying AC Milan before RedBird bought the club, have re-ignited their interest in buying cross-town rivals, Inter Milan.
Oaktree Could Take Ownership Of Inter Milan
Inter’s current owners Suning are still requesting more than €1 billion in cash to sell the club, but time is ticking as they have used their ownership of the club as collateral to secure a €275 million loan from Oaktree, a loan which must be paid in full by May 2024.
If this loan is not repaid in full by the due date, ownership of Inter Milan will fall to Oaktree.
Several reports in Italian media have indicated in the past that Oaktree have no interest in running the club and wish to sell it on immediately should Suning default on repaying their debt.
This is why, according to Tuttosport, interest in buying Inter Milan is increasing, with many investors beginning to look at purchasing the club at a much lower rate than the €1 billion price tag Suning have slapped on the club.
Meanwhile elsewhere, it has been reported that Suning are struggling to refinance the Oaktree loan and as such, could be forced to sell at a lower price the closer we get to May 2024 and the expiry date of the debt. "

 

[Il Drago]

We also need to remember that Suning have signed a settlement agreement with UEFA that doesn't allow us to exceed 60m loss in the next 3 fiscal years. Even if we get a sugar daddy it's not like we can go on a spending spree to rebuild the squad. Suning or no Suning there are tough times ahead. Especially if we miss out on top 4 this season.

 

[ADRossi]

We also need to remember that Suning have signed a settlement agreement with UEFA that doesn't allow us to exceed 60m loss in the next 3 fiscal years. Even if we get a sugar daddy it's not like we can go on a spending spree to rebuild the squad. Suning or no Suning there are tough times ahead. Especially if we miss out on top 4 this season.

Maybe we'll grow a spine like a real club and accept that nothing UEFA puts in front of us is enforceable.

 

[Puma]

I read yesterday that in March 2024, Suning will be required to pay 275 million for the loan to Oaktree and that there is another $350 million due in interest payments.

It is only a matter of time before the club gets sold because there is no way that Suning can possibly afford those payments.

The only questions is whether they will sell sooner and receive a sum that is in the proximity of what they are seeking or whether they will wait for a perfect offer to arrive and get lowballed the closer they get to March next year.

 

[CafeCordoba]

AFAIK they haven't used all that credit they got from Oaktree.

What is this 350m in interest payments? That isn't related to the Oaktree loan.

Maybe it's about the interests we end up paying for the debt Inter the club has till 2027? Though it doesn't add up as the rate is something like 6.75% for the 415m if I remember the numbers right. So interests won't be 350m or anywhere close in 5 years time (it was taken year ago)

 

[.h.]

Bonds maybe? I can't remember the schedule on all of our debt anymore

 

[CafeCordoba]

Our bonds are due in 2027 and they are 415m AFAIK.

Actually now I think what that number is. It's probably Oaktree loan + interest. AFAIK the interest was something like 10% so the whole thing they need to pay next year is ~350m (275m + 75m).

 

[Puma]

It was my understanding that the interest was at 11%-12%. I remember some posters on here specifically commenting on how high the interest payment was and saying even back then, that Suning would not be able to repay it.

 

[CafeCordoba]

Yeah it is probably something like that. But Inter's bond with 6.75% rate is actually pretty good now considering the rates going up tremendously in the past year's time.

 

[ADRossi]

Yeah it is probably something like that. But Inter's bond with 6.75% rate is actually pretty good now considering the rates going up tremendously in the past year's time.

It was my understanding that the interest was at 11%-12%. I remember some posters on here specifically commenting on how high the interest payment was and saying even back then, that Suning would not be able to repay it.

It begs the question of how the incumbent owner can hope to exit with a return, especially when Grand Tower, the Luxembourg-based holding company through which Suning controls Inter, took out a €275m loan from Oaktree Capital Management to help plug the funding gap during COVID-19. The loan has a 12 per cent interest rate and is due on May 20, 2024. Fail to repay it and Oaktree gets the keys to the club.

Ownership intrigue, recruitment and San Siro: What we're hearing about Inter

Inter are saddled with an ageing squad and uncertainty surrounds their move to a new stadium - issues that may frustrate a potential sale

theathletic.com

 

[nurko]

It begs the question of how the incumbent owner can hope to exit with a return, especially when Grand Tower, the Luxembourg-based holding company through which Suning controls Inter, took out a €275m loan from Oaktree Capital Management to help plug the funding gap during COVID-19. The loan has a 12 per cent interest rate and is due on May 20, 2024. Fail to repay it and Oaktree gets the keys to the club.

Ownership intrigue, recruitment and San Siro: What we're hearing about Inter

Inter are saddled with an ageing squad and uncertainty surrounds their move to a new stadium - issues that may frustrate a potential sale

theathletic.com

The guy that wrote this knows some FIF terminology quite well

 

[syrus]

It begs the question of how the incumbent owner can hope to exit with a return, especially when Grand Tower, the Luxembourg-based holding company through which Suning controls Inter, took out a €275m loan from Oaktree Capital Management to help plug the funding gap during COVID-19. The loan has a 12 per cent interest rate and is due on May 20, 2024. Fail to repay it and Oaktree gets the keys to the club.

Ownership intrigue, recruitment and San Siro: What we're hearing about Inter

Inter are saddled with an ageing squad and uncertainty surrounds their move to a new stadium - issues that may frustrate a potential sale

theathletic.com

Either way selling barella to Liverpool is not even going to touch the sides.

Shambles

 

[andrei]

The guy that wrote this knows some FIF terminology quite well

I could read only the first few sentences about Ciao Mario. And indeed I saw FIF terminology. It is one of us?

 

[Steevee]

I may be misremembering but am fairly certain the wonderful James H is a Romanista.

 

[TheNetworkZ]

The guy that wrote this knows some FIF terminology quite well

A lot of journalists just go around forums, twitter, sub-reddits, etc. to get their info.

We are probably self-responsible to a degree for quite a few Inter rumours lol.

 

[Capo]

Suning only chance is to accept a deal of 500/550M pay the loan and get a little something for it. But why would anyone buy the club now. Likely to sell Bastoni, Onana, Barella and Lautaro. Skriniar will leave for free and nothing is left of the crown jewels.

No UCL
No Stadia
And a shit load of debt

Wait until Suning defaults and pick it up at a bargain price - More likely to get the sugar daddy we want when the club is available for 300-400M. People will realise this was the fat chick in high school that is pretty, she has potential to be banging if she goes on Jenny Craig to trim down.

And all of a sudden, all the attention is on her, with a line of guys wanting to bust a nut in her first.

 

[interman]

It is strange to say but I think we should support to be out of top 4.
I see there is a two way outs from this situation:
1. We are out of top 4, we are in the deepest sh*** possible, but for a short period as Suning will simply loose Inter.
2. We are in top 4, maybe in the round of 16 in CL, we continue to struggle as Suning can keep the club floating with that money plus player sales.

 

[bubba zanetti]

"
Investcorp Looking To Raise Up To $654M To Buy Inter Milan From Suning
Investcorp Looking To Raise Up To $654M To Buy Inter Milan From Suning April 10, 2023 12:54
Bahrain-based fund InvestCorp are aiming to raise up to $654 million USD from investors as part of a bid to buy Inter from current owners Suning.

This according to business news outlet Economy Middle East, who report that the fund are aiming to form a consortium with enough funds to purchase the Nerazzurri, targeting between $545 million and $654 million.

A few days ago, Italian business newspaper Il Sole 24 Ore reported that InvestCorp have rekindled their interest in buying the Nerazzurri from Suning.

The Bahrain-based fund have already been linked with the Nerazzurri in the fall, whilst reports suggested that the fund had in fact been interested in acquiring the club prior to their well-publicized pursuit of AC Milan.

Economy Middle East provides confirmation of InvestCorp’s serious interest in purchasing the Nerazzurri from Suning.

The outlet notes that in the event of a takeover of the Nerazzurri by InvestCorp, “it would mark a significant expansion of the firm’s sports portfolio, which already includes ownership stakes in several sports teams and leagues, including the National Football League (NFL) team, the Jacksonville Jaguars, and the Spanish football league, La Liga.”

The report notes that the Bahrain-based fund see there being a real opportunity within European football, and particularly in the big Italian football clubs, and that an acquisition could be quite lucrative.

At the moment, InvestCorp are at the stage of looking for investors, with Economy Middle East reporting that the fund are in talks with potential investors from Brahrain.

The aim would be to form a consortium with sufficient funding to purchase the Nerazzurri.

Should such a consortium be formed, the ball could pass into the court of current Inter owners Suning.

The rumours that the current owners could sell Inter have been persistent given the Chinese company’s post-pandemic financial issues, although for their part Suning have always denied them and have looked for minority investment rather than to sell the club outright.

It has also been widely reported that the current owners’ valuation of the club is in the region of €1-1.2 billion.

However, it has also been reported that with the deadline of a massive loan taken on to support the Nerazzurri from US-based fund Oaktree Capital looming next year, Suning could feel forced to act and sell the club. "

Meh...