Steven Zhang Needs a Miracle to Keep Inter Milan: Oak Tree's Three-Pronged Strategy for Post-Takeover Management

Inter Milan is preparing for their final home game of the season, but Steven Zhang’s recent statement signals a turbulent period ahead. Zhang's declaration highlighted: "As the repayment date for Oak Tree’s financing approaches, we have been striving with our partners to find an amicable solution, including ways for Oak Tree Capital to receive full financial returns immediately. Unfortunately, our efforts have been thwarted by Oak Tree’s unilateral legal threats and malicious actions." This statement has sent shockwaves through the Inter community.

Oak Tree Capital has chosen not to respond with an announcement or statement but instead communicated to the Zhang family and Italian media: the financing agreement was signed three years ago, in black and white, and repaying debts is not a "legal threat." If by next Tuesday, the Zhang family’s Grand Tower company in Luxembourg fails to produce the €385 million principal and interest to repay the debt, Oak Tree Capital will take over Inter Milan. The process will resemble how Elliott replaced Li Yonghong, with Oak Tree already prepared for the takeover.

Italian financial expert Marco Festa points out that Zhang’s retention of Inter depends on a miracle, which is likely why he issued such a strongly worded statement. Either Zhang manages to finalize a financing agreement with Pmico within a few days—a difficult task as Pmico’s stance has cooled—or he must raise the funds through other means, which seems even more challenging. If domestic funds are raised, getting them out of the country poses another problem.

When consulted about this situation, a senior official from Jiangsu Province did not give a direct answer but instead urged for increased political study, emphasizing the principle of "willing to offend thousands for the happiness of 1.4 billion." Italian observers believe that Zhang, who has long relied on “borrowing to repay loans,” now has few options left and that Inter is heading towards a "forced takeover" unless a major reversal occurs.

Next Tuesday, the outcome of this drama will become clear. Sky Sports has produced a special program outlining the potential changes at Inter Milan if Oak Tree Capital takes over. Here are the three key points:

First, Oak Tree Capital does not plan to make significant changes to the management team. They intend to maintain the current balance between sporting strength and financial stability, continuing the "value for money" approach. Since 2021, Oak Tree Capital has held two seats on Inter's 10-member board (Carlo Marchetti and Amedeo Carasaei), working alongside Marotta, Antonello, and six Chinese representatives (five from Suning and one from LionRock Capital). Oak Tree has been involved in and approved all of Inter's financial decisions over the past three years, and they are very familiar with and satisfied with the current management.

Second, Oak Tree Capital’s takeover will not lead to an immediate injection of massive funds for new player acquisitions, nor will they likely dismiss the current management and coaching staff. In other words, the change in majority ownership will have minimal short-term impact on Inter's sporting operations.

However, the most crucial point is the third: Oak Tree Capital does not intend to hold Inter Milan long-term. They might sell the club within 3-6 months. Financial experts believe Oak Tree is already exploring new potential owners and negotiations, meaning Inter could undergo two ownership changes in just a few months. While Oak Tree Capital might not alter the management team or strategy, there’s no guarantee the subsequent owner won’t, which could create significant instability and uncertainty.

Marotta remarked, "Today has been a challenging day as we prepare for our upcoming match while dealing with financial issues. We are waiting for the outcome of this situation." Any organization experiencing two ownership changes within six months is bound to face anxiety and turmoil. Marotta is likely not alone in his concerns.

In summary, Inter Milan stands at a crossroads not seen in eight years. On Western social media, some fans are expressing hope, saying, "Steven Zhang promised to 'do everything possible to protect the club’s colors, values, and stability,' and we look forward to seeing what he, rooted in the mystic Orient, will do." However, many industry insiders have already started summing up the Chinese investment era of Inter Milan. What will happen next? The situation will soon become clear. One thing is certain: regardless of the outcome, the majority of Inter fans will applaud the work done over the past eight years, which yielded seven trophies.