Inter Milan’s Strategic Overhaul: From Džeko and Palacios to a New Lautaro

In a bold and transformative move, Inter Milan is preparing for its second significant shift in transfer strategy within just six months under Oaktree Capital. This new approach, as reported by La Gazzetta dello Sport, aims to reshape the club's squad-building philosophy by reducing wage expenditures while becoming more willing to invest in higher transfer fees. To better understand this evolution, Italian commentator Altobelli has categorized Inter’s recent transfer strategies into three phases: the A plan, the B plan, and the newly emerging C plan.

The A Plan: Zhang Kangyang’s Cash-Strapped Strategy

The A plan was emblematic of the Zhang Kangyang era, where Inter relied heavily on free transfers and low-cost acquisitions of experienced players. High-profile signings under this approach included Hakan Çalhanoğlu, Henrikh Mkhitaryan, and Edin Džeko. This method offered immediate on-field benefits while alleviating financial strain, helping Inter avoid dire scenarios like the one in which the club struggled to pay utility bills at its training base.

However, the pitfalls of the A plan were clear. Free transfers often carried hidden costs, such as elevated wages, minimal resale value, and significant agent commissions. Inter consistently recorded some of the highest commission payments among Serie A clubs. Over time, this approach also left the team vulnerable to aging issues. While most elite European clubs field starting lineups with an average age of 25-27, Inter frequently relied on lineups averaging close to 30 years old.

The primary driver of the A plan was Inter’s severe cash flow shortages under Zhang’s leadership, which ultimately led to the loss of his controlling stake in the club.

The B Plan: Oaktree’s Youth-Centric Gamble

Oaktree Capital’s entry into Inter Milan marked the beginning of the B plan, a strategy centered on acquiring young, low-cost talents with high potential for resale value. This approach reflected a shift in priorities, focusing on long-term sustainability.

The summer transfer window saw the culmination of pre-Oaktree deals, such as the permanent signing of Carlos Augusto and the free transfers of Piotr Zieliński and Mehdi Taremi. However, after taking control, Oaktree’s notable signings included midfield prospect Martin Topalović, Argentine Olympic squad member Thiago Romano, and young defender Juan Palacios, acquired for a combined €14 million.

While this strategy promised lucrative rewards if players developed successfully, it carried significant risks. Many of these players lacked Serie A or European football experience, requiring considerable time to adapt. This made it difficult for managers to integrate them immediately, and the failure rate for such speculative signings was high. For instance, Topalović and Romano remain in the U19 squad, while Palacios has struggled to secure meaningful first-team minutes.

The Emerging C Plan: Targeting Proven “Half-Finished” Products

With the B plan yielding mixed results, Inter is now transitioning to a more balanced approach, the C plan. Under this model, the club aims to sign players who have already demonstrated some level of top-flight readiness, even if they require an investment of €20-25 million. This shift indicates a willingness to prioritize quality over quantity in the transfer market.

The ideal example of this approach is Lautaro Martínez. When Inter signed him in 2018 for a fee of around €25 million, he was already one of Argentina’s brightest young talents, having won the South American Youth Championship Golden Boot in 2017 and earned the title of Best Newcomer in the Argentine Primera División in 2018. Lautaro’s signing represented a calculated risk: he was a player who had proven his potential and was ready for the next step in his career.

Similar transfers can be seen across Serie A, such as AC Milan’s €21 million acquisition of Christian Pulisic or Atalanta’s €25 million investment in Mateo Retegui. These players arrive as semi-polished talents who require less time to adapt and can contribute more immediately to their teams.

The Role of Oaktree Capital in Enabling the C Plan

Inter’s inability to adopt the C plan previously stemmed from severe financial constraints. However, with Oaktree Capital’s financial backing, the club is now better positioned to invest strategically. While Oaktree is far from adopting a “blank check” approach like Massimo Moratti in the past, it recognizes the value of spending wisely to generate returns.

Key elements of this strategy include:

• Wage Reduction: Lower salaries and taxes create financial breathing room.
• Capital Appreciation: Investments in semi-finished products like Lautaro can yield significant resale profits.
• High-Value Sales: Maintaining a “buy low, sell high” philosophy ensures financial stability.

Oaktree’s broader vision for Inter extends beyond transfers. Plans include aggressively pursuing a new stadium project, revamping the club’s commercial and personnel management, and securing sponsorships from regions like Saudi Arabia and the United States. However, implementing these ambitious projects requires navigating substantial bureaucratic and logistical challenges.

Immediate Implications

The C plan’s influence is already being felt as the January transfer window approaches. This period is traditionally pivotal for securing free transfers, yet Inter’s renewed strategy may shift focus toward identifying mid-priced players with proven value. Additionally, the club must address the futures of several aging players whose contracts expire in the summer. Deciding who stays, who departs, and who replaces them will test Inter’s commitment to its new philosophy.

With Oaktree Capital’s backing and the C plan in place, Inter Milan is entering a new era. The goal remains consistent: financial stability through smart transfers. However, the methodology has evolved, signaling a future where the club blends fiscal responsibility with a competitive edge in the transfer market. Whether this vision can restore Inter to consistent domestic and European glory remains to be seen, but the journey promises to reshape the club for years to come.