Inter-LionRock, according to the FIGC there is no evidence of any wrongdoing. Here’s what filters through

Inter-LionRock

A statement from an “Asian fund spokesperson” of the LionRock fund to the Reuters agency on May 22 created a mystery about Inter: “Hong Kong-based LionRock Capital ceased to be an investor in Inter Milan when US fund Oaktree Capital Management provided financing to the main owner of the Italian football club.” A transfer of quotas which, however, absolutely does not appear in the official documents (as specified by Calcio e Finanza). Furthermore, in the same article, Reuters specifies that this event was reported by “sources” and never officially confirmed. But let’s go in order.

Below is Reuters

“LionRock Capital, based in Hong Kong, ceased to be an investor in Inter when the US fund Oaktree Capital Management provided financing to the main owner of the Italian football clubsaid a spokesperson for the Asian fund.

Oaktree has taken ownership of Italian soccer champions Inter Milan after a failure to pay 395 million euros ($428 million) by the club’s Chinese majority shareholder.

“The recent transaction has had no negative economic impact on any fund managed by LionRock and will have no future financial consequences”the LionRock spokesperson said. In 2019, LionRock became Inter’s second largest shareholder with the acquisition of a 31.05% stake. The LionRock spokesperson declined to provide the identity of the investor who purchased the stake. In 2021, when Oaktree provided its financing to the Chinese owner of Inter Milan, sources had said that the fund would get participation from LionRock, but the information was never officially confirmed.”

Dagospia wondered who was behind LionRock – the Asian fund that was a 31% shareholder of Inter – in case the anonymous spokesperson’s statements were true. “Everything okay? Well, not so much: the FIGC understood that LionRock was a shareholder of Inter until a few days ago”, we read on the site. According to Dago “so if his spokesperson didn’t get sunstroke” sports law would have been violated, “i.e. the non-communication of a change in members”

However, it should be added, according to Tuttosport, that the reconstruction reported by the site (Dagospia) “has been defined as incorrect by Oaktree and, in any case, the facts – it goes without saying – concern a situation prior to the current one”

Furthermore, according to Affaritaliani.it, representatives of LionRock have always been present at the meetings of the club’s members.

It’s still. In recent days, Inter had made it known that it had received notification that LionRock was no longer among the shareholders since the enforcement of the pledge which led Oaktree to take control of the Nerazzurri club.

Here is the press release from the Nerazzurri club

“On 22 May 2024 FC Internazionale Milano SpA (“Inter”) received a communication from its shareholder Grand Tower S. à.rl (“GT”) – which holds a stake equal to 68.55% of the share capital of Inter – with which it was informed, among other things, (i) of the enforcement of the pledge on the shares of Great Horizon S. à rl (sole shareholder of Grand Sunshine S. à rl which, in turn, is a shareholder of GT) (“GH”) by GLAS Trust Corporation Limited (“Security Agent”), as agent, and OCM Luxembourg Sunshine S. à rl (“OCM” an entity referring to the funds managed by/a entities affiliated with Oaktree Capital Management, LP (“Oaktree”), as a vehicle designated, appointed and authorized by the Security Agent; and (ii) the circumstance whereby, as a result of the aforementioned enforcement, OCM has acquired direct control of the 100% of the share capital of GH and, therefore, obtained indirect control of Inter. On the same date, Inter was also informed that GH also acquired control and ownership of LionRock Zuqiu Limited, a company which it holds indirectly, through its subsidiary International Sports CapitalS.pA, 31.05% of Inter shares. As a result of the above, Oaktree has acquired overall indirect control of 99.6% of the capital of Inter.”

Inter-LionRock, the words of the anonymous spokesperson are not confirmed in the documents

Not only. According to what Calcio e Finanza reports, there is no confirmation in the documents of the words of the spokesperson quoted by Reuters. “Great Horizon does not appear to have purchased the share three years ago, because its 2021 financial statement (filed a few weeks ago) does not mention it, just as there is no mention of it in the financial statement as of 30 June 2021 of International Sports Capital Spa, approved by the shareholders’ meeting on 27 December 2021. Furthermore, in all the official documents linked to the bond (from the prospectus of 9 February 2022 to the following quarterly communications), the share held by ISC has always referred to the LionRock fund. In the latest communication from last February we read for example that Inter «is owned by Grand Tower S.à rl (68.55%), International Sports Capital SpA (“ISC”) (31.05%) and other minority shareholders (0.40%). ISC is owned by LionRock Capital (“LionRock”), an experienced private equity investor based in Hong Kong.”

Inter-LionRock, what do they say from the FIGC? No wrongdoing

“Remaining on the subject of controls, while Inter is already projecting itself towards the Oaktree-branded futurethere are those – such as the Jdentità Bianconera Foundation, but it seems it is not the only one – demanding sanctions against the Italian champions for how the change of ownership was achieved and in particular for the alleged lack of (or in any case late) communications of the exit of the Asian fund LionRock from the Inter shareholding structure. At the moment the FIGC does not know anything illicit in the Nerazzurri’s position, given that there is talk of an operation carried out by Steven Zhang within the free market.” reports the Gazzetta dello Sport.