More information has come to light which suggests that had Investcorp managed to buy AC Milan instead of RedBird Capital Group, they would not have been able to invest the money into the squad that was promised.
As reported by Calcio e Finanza (via Milan News), Elliott Management received two main offers for the club last summer; one from RedBird and one from Investcorp.
The latter had claimed that they could invest at least €300 million in new players for the team had they been sold the club, but that may not have transpired. It is not that Investcorp could not afford it, but it would not have been logistically possible.
It primarily centres around Financial Fair Play regulations. Had Milan enjoyed a €300-400m window, there would have been much higher depreciation on players and the revenue structure would not support the added wage costs without producing a loss of at least €150m. That would have landed them in a world of pain with FFP.
Milan would have essentially spent too much all at once and fallen foul of the rules, which could have resulted in fines and sporting sanctions from UEFA.
