The Suning Commerce Group

[.h.]

What?

Oaktree will pass on 1bn equity gain because "they don't want to run a club"?

And giving 6 months extension? Are you serious?

Well, the alleged clause that in the case of a default, Oaktree only get back their cash anyway, and any profit goes to Suning would explain the first point.

If they dont want to run a football club - e.g. they dont have the professional managers, etc, ready to put into place, then why would they want to take over the club? They can look at plenty of other disasters in recent football history where equity was destroyed really quickly (hell look at Chelsea) as a reason NOT to

An extension - why not? It doesnt have to be long term, and it can be conditional on the sale of the club. Its no different to, if the clause above is real, a Suning default and then being sold by Oaktree anyway...

 

[vex]

Club statement doesn't sound reassuring at all

Fucker doesn't seem to have a plan b, does he, instead he is hoping for a goodwill of a vulture fund.

This is why it was paramount for him to consider sale earlier, and to actually have some inputs into which hands we are going to go. Oaktree will not give a fuck, we can only hope the highest bidder will be the best option and not milan type of owners or even worse.

 

[ADRossi]

Dear Nerazzurri family.

This season marks a historic milestone in our 116-year history as we are now proudly wearing two stars on our chests, symbolizing the joint efforts of women and men in Inter. As we near the end of this fantastic season, I want to address the speculation concerning our Club's financial stability.

The years 2020 and 2021 were unforgettable for our generation, as the global pandemic profoundly changed many aspects of our lives. In order to continue our support towards Inter after over a billion of investment , we secured the Oaktree debt facility at our own expense to support this winning project that we started since 2016. Since then, my management team and I have been dedicated to develop on-field success united strict financial discipline.

Our hard work has paid off. In the eight years under our stewardship, together with our staffs, players and coaches, we have experienced seven trophies, two European finals, and topped the Serie A Championship twice. The legendary second star is a testament to our growth and success. Of course, achieving such incredible heights both on and off the pitch also benefits all of our partners, including Oaktree.

During the approach of the pending Oaktree facility redemption date, we have been making every attempt with our partner to find an amicable resolution, including multiple paths for Oaktree to achieve full and immediate financial return. Unfortunately, our efforts to date have been exasperated by legal threats, and a lack of meaningful engagement from Oaktree. Not only has this been deeply frustrating and disappointing, such behavior now poses potential risks to the Club that could seriously jeopardize its stability.

On behalf of Inter, as the President, I want to assure the hundreds of millions fans around the world, that we will do everything possible to protect our color, fundamental value and stability. We are committed to working towards a peaceful resolution with Oaktree and continue our success story for our beloved Inter.

Forza Inter Sempre.

President

Steven Zhang

So Oaktree is not willing to refinance the loan. Zhang needs to refinance the loan with a third party but (so far) is unable to find one willing.

 

[Jane The Virgin]

Can someone tell me what happens if I get a lot of Oaktree shares now, and they end up with owning Inter?

 

[ADRossi]

Can someone tell me what happens if I get a lot of Oaktree shares now, and they end up with owning Inter?

Quite literally nothing

 

[varmin]

So, I don't understand if Oaktree get Inter now and sell it immediately, they will get all money or only what Suning own them+the interest?

For me immediate sale is the most probable scenario as there was already reported interest in Inter, but Suning always asked for a lot of money as per rumors.

 

[vex]

The thing that rubs me the most is him saying we have to protect our stability, and yet he is the same guy that couldn't even own this club if it wasn't for loans.

Clown statement pure and simple... What kind of stability in a real sense of that word are we even talking about when we have a guillotine hanging above our head since covid times...

 

[.h.]

So, I don't understand if Oaktree get Inter now and sell it immediately, they will get all money or only what Suning own them+the interest?

For me immediate sale is the most probable scenario as there was already reported interest in Inter, but Suning always asked for a lot of money as per rumors.

In a *normal* default, they would get full value for the club, and that would be that. There are clauses, though, that suggest any excess over what they are owed is paid back to Suning.

 

[RickyMaravilla'sRightFoot]

There is no honor among thieves Steven.

 

[brehme1989]

If anything, this could be very promising.

Of course it can spiral in the wrong way, but realistically it should open up the path for serious investors that got repeatedly rejected by Suning even after meeting their demands. And I don't mean BC Partners kind of investors.

Give me someone who will view Inter as the jewel of their crown, and not their hostage or son's plaything.

 

[BasedGodPunk]

Yeah I don’t really view this as a bad thing. Suning have absolutely zero stability and now the floor is dropping from underneath them. We all knew this day was coming. Better to do this while Marotta and crew are still here.

 

[.h.]

You realise the financial stuff is just Inter losing a lot of fucking money, right? Like, they're injecting loads of cash to cover our losses. The club costs more to run than it makes. The rest of it is just noise.

 

[brehme1989]

You realise the financial stuff is just Inter losing a lot of fucking money, right? Like, they're injecting loads of cash to cover our losses. The club costs more to run than it makes. The rest of it is just noise.

How much of that goes to finance Zhang's interest payments?

 

[YoramG]

Win the treble -> banter era

Win the 2021 scudetto -> Conte, Lukaku, Hakimi out with threats of bankruptcy

Win the second star -> Suning defaulting on a loan and we end up property of a hedge fund.

Jesus Christ. Can’t have anything nice.

 

[ADRossi]

You realise the financial stuff is just Inter losing a lot of fucking money, right? Like, they're injecting loads of cash to cover our losses. The club costs more to run than it makes. The rest of it is just noise.

Once again, who do you want to blame for the complete lack of progress in building/owning a stadium? Who do you want to blame for us having a season where we earned close to 0M from a kit sponsorship? Who do you want to blame for going on a reckless spending spree (twice) while owning the club?

Suning have generally improved our club since taking ownership of it. They've also created a mess that they're now responsible for.

 

[SiamoNoi]

Win the treble -> banter era

Win the 2021 scudetto -> Conte, Lukaku, Hakimi out with threats of bankruptcy

Win the second star -> Suning defaulting on a loan and we end up property of a hedge fund.

Jesus Christ. Can’t have anything nice.

As people already said,this would happen sooner or later. This is a new opportunity and not necessary a bad thing.

But I guess people will be in panic mode all over the internet in next weeks reading all bullshit media is serving to them.

 

[.h.]

Once again, who do you want to blame for the complete lack of progress in building/owning a stadium? Who do you want to blame for us having a season where we earned close to 0M from a kit sponsorship? Who do you want to blame for going on a reckless spending spree (twice) while owning the club?

Suning have generally improved our club since taking ownership of it. They've also created a mess that they're now responsible for.

If that's the set of expectations you have, its quite a weird double standard? You're complaining about a reckless spending spree, but kinda expecting exactly that from a new owner?

Dont kid yourself - even if Zhangs werent broke, this is Italy, there'd be 0 fucking progress on stadia anyway.

On the kit sponsor, yeah, that sucks ass. But other clubs like Roma ? have also had no sponsors at all for a period of time


The only way they're "responsible" for this mess is continuing to fund the club rather than just pulling the plug and forcing us to be self-sufficient. They could easily have done that, and by doing so, we'd be back in a proper banter era.


New ownership is not going to fundamentally shift the financial position of the club, unless you find a sugar daddy who is... going to spend recklessly.

We spoend more on salaries + amortisation, than we make as a club. It's as simple as that. The only way to stop spending recklessly is by cutting salaries+amortisation. Who do you want to sell and not replace? Tell me how you plan to shave 50m off of our wage+amo bill without replacement and I'm sure the new owners would be all ears too.

 

[javier_zanetti <3]

Anyone who still doesn't understand that as long as they're here, the club's success and even existence is temporary, doesn't understand basic economics. It's impossible to be a competitive club when the owners don't inject money and only take out huge loans that ultimately only make the club's life harder.

 

[.h.]

Anyone who still doesn't understand that as long as they're here, the club's success and even existence is temporary, doesn't understand basic economics. It's impossible to be a competitive club when the owners don't inject money and only take out huge loans that ultimately only make the club's life harder.

When the debt is converted to equity, as Zhangs have done with like 400-500mil or more with Inter, please remind me how it makes the clubs life harder? The financial equivalent of a cash injection from a sugar daddy, and a loan to the club that is debt2equity conversion is 100% equivalent...


The loan only screws them over (aside from whatever happens re a default for Inter). It makes no difference to us. Our financing costs are basically entirely bonds related, rather than loans.

 

[brehme1989]

The only way they're "responsible" for this mess is continuing to fund the club rather than just pulling the plug and forcing us to be self-sufficient. They could easily have done that, and by doing so, we'd be back in a proper banter era.

That's exactly what they've been doing.
But there's more to it.

Once again, and please answer for once because you've been avoiding this for years: How much of Zhang's loan interest payment is coming from Inter finances?