Gerry Cardinale is continuing talks with two companies over financing for the AC Milan project, which would allow him to repay the vendor loan to Elliott Management.
Before Christmas, it was reported that Cardinale was looking for financing to repay the vendor loan, which amounted to €523m in June last year. Since then, the Milan owner has continued to evaluate is option and currently, talks are ongoing with two companies.
According to Calcio e Finanza, the first company is Manulife Comvest, which has already worked closely with RedBird and Cardinale on the iCreditWorks project (both are investors). As the report states, it’s one of the fastest-growing FinTech platforms in the United States.
The second company is unknown for now, but the name will likely emerge if Cardinale were to deepen the talks with said company. In any case, for the Milan owner, the discussions with these two companies will tell him two things:
1) If he will be able to get the €600m that he’s looking for and 2) at what terms, including interest rates, repayment deadlines and so on.
Clearly, the goal is to get better terms than the Elliott deal, and Cardinale is confident that he will get this thanks to the financial growth of the club, as well as the approval for the stadium project. Then, in the future, it remains to be seen if he will take out loans or sell a minority stake in the club.
So Milan is going back to Elliot 😔
I doubt it as the loan to Elliot first will have to be paid in mid 2028 as it was renewed in either 2024/25 if my memory serves me correct.
Click bait title. Loans not due until summer 2028. Refinance is just a normal thing to save millions on interest payments.
The thing is, they’re going to have to take out more loans (or sell a piece of the club) to finance the stadium. Milan is going to be responsible for half of the 1.2bn projected, so 600m. Redbird has to finance this vendor loan, and then finance the 50% for the stadium. If this loan is 600m and the stadium half is 600m, that’s 1.2bn financed. That’s crazy.
I don’t care in this case which is better for Cardinale. To me it seems better for us if Redbird owes money to Elliott than some US Fintech fund. In the unlikely case of default on the loan at least we know Elliott knows how to keep the club from drowning.
There’s nothing to worry about. Given the club’s finances are in order and the new stadium, Milan is attractive to potential buyers or investors, should it come to that.
RossoBG , Such Bullshiiiht ! Default on loan ????? Yea right….
As I said in case of an unlikely default on loan… Take a chill pill, in general the financing bit doesn’t concern us as fans, nor are we allowed to have an opinion on that matter.
It’s not like Cardinale is involved in anything anyway. Furlani is the one that needs to go. And Scaroni. Even though he’s not doing anything but then again it’s exactly why he should go. 😀