AC Milan changes ownership but remains under the American flag

Ten days after its coronation in Serie A, the first since 2011, AC Milan is about to change hands. Owned since 2018 by the investment fund Elliott Management, the Lombard club will come under the control of another American fund, RedBird.

The two companies have “entered into a definitive agreement for the acquisition” of the Italian club by RedBird, already the main shareholder of the Toulouse club, in France, according to the press release. This agreement values ​​AC Milan at “1.2 billion euros” and should lead to a transfer of ownership by September 2022. Elliott Management, which has cleaned up finances and restored the sporting credibility of a club at the drift at the end of the Silvio Berlusconi era (1986-2017), “will retain a minority financial stake and representatives on the Board of Directors”, added the club.

RedBird Capital Partners is particularly present in the sports marketing sector in North America and in the summer of 2020 took control (85% of the shares) of the Toulouse club, which will return to Ligue 1 next season. Its boss, the Italian-born financier Gerry Cardinale, has also been associated with commercial operations with several franchises in American sport, in particular with stakes in the New York Yankees or the Boston Red Sox (baseball).

A very attractive new stadium project

“RedBird’s investment philosophy and the results obtained in the world of sport have demonstrated that football clubs can be successful on the field, while maintaining a sustainable financial profile”, he commented, quoted in the press release.

American investment funds are increasingly active in European sports business. In recent weeks, the Red Star or the SCO of Angers have announced their takeover by companies from the United States. Nearly half of Serie A clubs are foreign-owned, almost all in the hands of North American interests. The only exception is Inter Milan, owned by the Chinese group Suning. In addition to the brand image of AC Milan, the interest of the operation for RedBird is based on the new stadium project carried out by the two Milanese clubs. Synonymous with increased ticketing revenue, the projected new precinct would succeed the venerable San Siro after 2026.