Some rather concerning news has arisen as Milan board member Salvatore Cerchione intends to take Elliott Management to court over the sale of the club, a report claims.
During a piece on the Financial Times, Milan board member Salvatore Cerchione criticised the club’s takeover process and in particular how out in the open a lot of the information has been, labelling his group Blue Skye – who own 4.27% of the parent company of the club – as being ‘unhappy’ and ‘confused’.
According to La Gazzetta dello Sport (via Calciomercato.com), Cerchione has decided to resign from the board of directors of Milan and even go a step further. He intends to go to a court in Luxembourg (where Project Redblack and Rossoneri Sport Investment Sarl, the two companies that control Milan, are registered) to contest the sale of the majority shares of the club.
Cerchione believes that he was not involved in the operation, despite the fact that 100% of Project RedBlack was required to give the green light to RedBird Capital.
Cerchione could decide to also apply to the Italian ordinary justice against Elliott, but at the moment it is not known whether a possible lawsuit could lead to complications regarding the full closing of the operation, which is destined to arrive by September after the signing on June 1.
Interesting, seems like they tried to push the sale to the US company ASAP, now I also wonder why.
Nah…. nothing serious will happen.
He just wants his cut. Probably had a deal with investcorp to get x amount. Once they looked less likely to buy the club and then Redbird took over he saw his cut dwindle away
So first they reject investcorp offer because it is not self funded but they are suposed to get a loan. They (elliot) say that they are thinking about clubs best interest and that redbird offer is purely self funded then it turns out it is not but they (elliot) provide huge loan with pretty big interest (7%) to close the deal….something smells rotten very very rotten
Not really. Money is money. What’s the difference between Investcorp getting a 600m loan and RedBird getting a 600m loan? If Elliott happens to be making the loan to Redbird vs random bank/fund for Investcorp I say it’s a smart piece of business by Elliott. The bottom line of the deal in terms of the club doesn’t change. 1.1-1.2bn valuation with 40-50% of it funded by a loan. The only reason you think it’s fishy is because you and other people somehow have this idea that Investcorp is going to be a better owner simply because they’re from the Gulf. If that were so, and they’re so much more wealthy or whatever, why would they need the same type of financing that RedBird is making? Stop making an issue where there is none.
What are you anti-anything from the USA or just completely ignorant of finance?
These Elliot is awful posts are laughable after what they have done for Milan.
You will see in 1-2 years, how this deal is very strange. I only hope it will not be total disaster for ACM. Everything, from loan from Elliot with high interest rate, 30% still in their hands… We forgot what is nickname of Elliot: vulture! You just read litle more about them, and it will be clear to you, who they are and how they work.
You can read all you want about Elliot, then you can look at the facts of what they have done for Milan, they brought us the scudetto, and they also turned us from a club with massive debts to a club with zero debt and they gave us a squad that is the most valuable in the league, then look at the mess other clubs around us are in and be thankful for Elliot.
The reported 6-7% is actually pretty low by industry standards, inter and juventus pay waaay more interest on their bank loans than we would on a loan from Elliot.