Can Oaktree Capital Turn Inter Milan Into A Manchester City Type Football Empire? | OneFootball

Since taking control of Inter in May 2024, Oaktree is making moves to transform Inter Milan into a footballing powerhouse akin to the Emirati City Football Group’s success with Manchester City.

The club is already asserting itself in Italy. This despite criticism from the local press. Inter currently sit in second spot in the Serie A.

The Nerazzurri have also set their sights on the prestigious UEFA Champions League. Success in Europe could raise Inter Milan to unprecedented levels.

Oaktree Adopt Balanced Approach In Attempt To Turn Inter Into An Empire Akin To Manchester City: Culture & Financial Discipline

Oaktree Capital is instilling a much-needed culture of financial discipline at Inter Milan. They prioritize sustainable growth alongside competitive success.

This strategy goes beyond mere victories. As it emphasizes smart investments and internal talent development.

While the football world often equates success with extravagant spending, and big names acquisitions, Oaktree is proving that strategic planning and financial prudence can yield results on the pitch.

Enhancing Fan Engagement & Brand Equity

Building a strong connection with fans is crucial for any football club’s success. Oaktree is prioritizing fan engagement and brand development.

Their aim is to strengthen Inter Milan’s ties with its supporters. Efforts include enhancing the matchday experience and involving fans in the club’s journey toward European glory.

With targeted marketing initiatives and community outreach, Oaktree is positioning Inter as a brand that resonates with both local and global audiences.

However, the club faces challenges due to its fragmented fanbase.

To overcome this, Oaktree must implement innovative incentive structures, such as crowdfunding tools, to encourage fan participation in Inter’s global ambitions.

Stadium Development: A Key Revenue Driver

Central to Oaktree’s strategy is the development and monetization of Inter Milan’s stadium. Recognizing that the current venue requires modernization, Inter is focused on co-developing a new stadium.

This will enhance the fan experience while maximizing long term commercial value. Although the project is projected to cost at least €1 billion, the new venue is expected to unlock substantial revenue streams.

These are vital for competing at the highest levels, especially in pursuit of Champions League success.

However, the bureaucratic hurdles of building a new stadium in Italy present significant challenges. And Oaktree should be prepared with contingency plans if these efforts face delays.

The Manchester City Benchmark: A Case Study In Growth For Oaktree When Growing Inter

To understand the potential for Inter Milan’s transformation, one need look no further than Manchester City.

Acquired by the Emirati City Football Group under the leadership of Emirati Prince Mansour Bin Zayed (Abu Dhabi Deputy Prime Minister) who owns almost 82% of the team, in 2008 for around $264 million, City’s valuation has since skyrocketed to approximately $5.1 billion.

This is the 5th most valued team in the world. This remarkable growth did not happen overnight. In fact, it has taken years of strategic investments in player acquisitions, infrastructure, and global marketing to build the club into a recognized brand worldwide.

The City Football Group’s multi-billion-dollar empire has been cultivated through long-term planning, deep pockets, and patience financial discipline.

Thus demonstrating that substantial value creation in football takes at least five years to show up in your financial statements.

Managing the Challenges Towards Winning The Champions League

To become European champion Inter needs to outperform all on the pitch.

In order to do that, smart investments and a clear vision need to be implemented ruthlessly.

A Champions League title is achievable, but clubs like Real Madrid, Manchester City, and Arsenal (the three favorite for the 2025 title) will be closely watching to see if Inter’s ambitious plans can materialize on the pitch across Europe.

Oaktree Maintain A Model Of Corporate Excellence in Football Applying It To Inter Akin To Manchester City

Under Oaktree’s guidance, Inter Milan is evolving into a model of corporate excellence in Italian football.

By fostering a strong corporate culture and emphasizing teamwork over individual stardom, the club is building a competitive squad.

As Oaktree implements its strategies, Inter Milan is on track to become a best-practice example in football management.

Winning the Champions League would be a landmark achievement, potentially propelling the club’s valuation toward $2 billion mark.

Furthermore, it would secure its place among the world’s most valuable football teams.

Conclusion

In conclusion, Oaktree Capital is revolutionizing the operational model of Inter Milan to bring it up to the level of Manchester City.

While some fans may question their cautious spending approach, Oaktree’s commitment to financial discipline, fan engagement, and innovative stadium strategies positions Inter for a bright and prosperous future.

The aspiration to reach a $2 billion valuation, particularly with the Champions League within reach, underscores the potential for explosive growth.

With key players like Dimarco and Thuram leading the charge, Inter Milan’s ambitions could soon translate into both success on the field.

Whilst also achieving financial rewards in the board room. On top of that, if Lautaro Martinez starts scoring in Champions League as he scored in Serie A last year, that could be a game changer.

By: Andrea Zanon

Andrea Zanon is the co-founder of Confidente. He is an international advisor who has worked for financial institutions and entrepreneurs on sustainability, international affairs and development.