New Inter Milan Situation Explained: Lautaro's Contract Talks Delayed, Zero Transfer Budget, New Stadium Unlikely

As Inter Milan undergoes significant changes, everyone is focused on one thing: bidding farewell to Zhang Kangyang. Massimo Moratti rated Zhang an 8 out of 10, and most beat reporters and Italian experts seem to agree. From Simone Inzaghi to Hakan Çalhanoğlu, from Federico Dimarco to Lautaro Martinez, the entire Nerazzurri community has expressed heartfelt gratitude towards Zhang. This collective sentiment proves that Inter Milan values Zhang’s contributions over the past eight years. However, it’s essential to look forward. Alejandro Cano, Oak Tree Capital's Global Opportunities Strategy Manager and Co-Head of the European Division, along with Operations Manager Caserini Ralph, has begun official interactions with Inter Milan’s current CEOs, Beppe Marotta and Alessandro Antonello, marking the start of a new era for the club.

As Inter Milan begins this new chapter, what will the immediate focus be, and what strategies will they adopt in the coming weeks? Yesterday, Gazzetta dello Sport published a series of articles, Sky Sports aired a special focus program, and several beat reporters hosted long live streams to address the key questions that global Inter Milan fans are most concerned about.

First, contract negotiations with Simone Inzaghi and Lautaro Martinez will continue, but final decisions will be delayed. Inzaghi's contract renewal should not pose significant issues. However, Lautaro’s situation is different, as it involves breaking the team’s established salary structure. Therefore, while discussions can proceed, a final decision must wait for approval from Inter Milan’s new leadership, as this concerns the future operational direction. Currently, American investors control seven teams in Serie A, including major clubs like AC Milan, where salary caps are a top priority. The same approach is likely for Inter Milan.

Additionally, the summer transfer budget for Inter Milan remains undetermined until the new board is established. Most experts predict that regardless of who Oak Tree Capital appoints as the new leader, the likely outcome will be a zero-budget scenario. In his first interview after Oak Tree Capital took over Inter Milan, Alejandro Cano promised, "Our goal is to continue the club’s on-field success," but also clearly stated, "Initially, we will focus on the club’s operations and financial stability." This indicates that a substantial transfer budget or a marquee signing as a "welcome gift" is unlikely.

Moreover, the two most anticipated projects for Inter fans – building a new stadium and investing in a second team to compete in Serie C – are unlikely to see significant progress before the new ownership is fully established. Many believed that Oak Tree Capital replacing Zhang Kangyang would bring two main advantages: firstly, the club would no longer need to worry about Zhang's "debt-financing" approach and the high-interest payments eating into revenue; secondly, Oak Tree Capital could potentially provide the upfront cash needed for major projects like acquiring land for a new stadium. While theoretically plausible, beat reporters caution against excessive optimism. Oak Tree Capital does not intend to manage Inter Milan long-term; their plan is to eventually sell the club.

There are two possible scenarios: either a resale of Inter Milan within a few months or half a year, or stabilizing the club for 1-2 years before pushing for another sale. In either case, Oak Tree Capital is unlikely to invest in long-term projects like a new stadium or a second team, as these require lengthy periods to yield returns and do not align with Oak Tree’s goals. Such projects might also incur new debts and financing needs (especially for the new stadium), complicating the resale process and adding more variables.

On a more immediate note, the sale of loaned-out players, such as Martín Satriano (with Lille and Stuttgart reportedly in contact with Inter for a potential purchase), will continue. Oak Tree Capital is unlikely to obstruct these sales, as generating some revenue aligns with both Marotta and Piero Ausilio’s strategies and the temporary managers’ goals. This is expected to be a primary focus for Inter Milan in the near future.

Furthermore, the club's public relations may improve, though the reasons are not elaborated. In summary, the initial phase for the new Inter Milan will involve restructuring the board of directors, a process originally estimated to take 2-3 weeks but now expected to require about a month. During this time, high-value contract renewals like Lautaro’s will be difficult to finalize, and major signings are unlikely – these are the initial forecasts from Gazzetta dello Sport and various beat reporters. We will have to wait and see if these predictions hold true in the coming months.

While the situation at Inter Milan is complex and evolving, it’s clear that the new era will bring significant changes. The club's immediate priorities include stabilizing operations and finances, making careful and strategic decisions regarding player contracts, and managing fan expectations amid these transitions. The path forward will undoubtedly be challenging, but the goal remains the same: to maintain and build upon Inter Milan’s on-field success while ensuring long-term financial stability.