AC Milan owners Elliott Management will include a vendor loan for RedBird Capital as part of the deal to sell the club, a report claims.
As has been reported this morning by Il Sole 24 Ore, Elliott will include a loan for RedBird which will then be used by the American investment firm to partially fund the takeover of Milan.
The figure in question for this loan is rumoured to be around €600 million and should ensure that there are no cash flow issues for RedBird and Milan once their takeover of the club is officially formalised.
Given the work they have done at the club and the positive relationships they have with many elements of Milan, Elliott are going to remain as a minority shareholder at the club in the future.
They were very keen to make sure that the club is not leveraged with any unnecessary debt when a new company or individual takes over.
Let me put it in simpler terms it is a sort of loan which that Chinese investors took to buy milan and hence in case of non repayment will result in asset takeover….Well for elliot it’s all about profits rightly so and they better stop saying we want to leave Milan in good hands…..
Glad we have a financing expert here!! X)
Lol wish I was this smart I would have bought milan myself lol
So Elliot is financing RedBird purchase of Milan from Elliot.
That’s Genius.
And if it doesn’t work out for some reason with RedBird, we have a back up plan for Elliot to step back in.
Win- Win
Now we know why Redbird became the favorite, even more money for Elliot.
So, now they own two clubs under UEFA: AC Milan and Toulouse. What is going to happen when these two clubs meet on the field? How we (fans), will be sure that result is not decided before the game?
Let’s worry about that IF Toulouse ever reaches to UCL. 😉
How did fans feels about two Lotito teams playing against each other this season in Serie A? I didn’t see much crying about it. He was supposed to sell Salernitana before the season but couldn’t. The deal took place in January instead.
This is like how Milan operate in transfer market:
Loan with fee and option to buy
Pay some money at the beginning to gain control for determined period. If at the end of the period do not have enough money to pay the remaining, it will be returned…
Absolute joke. Bring back investcorp. Don’t want these f*ck heads owning my club.
If RedBird fails to repay the 600M $ loan, then Elliott will (re)take control of Milan.
This is way better than Milan forced to be sold to some scoundrel like Li Yonghong, which lead Milan to chaos again.
For the past four years, we already know what Elliott has done and can do for/to Milan.
Don’t be surprised. Elliot nickname is: vulture fund.
What’s the joke? Other than you’re complete lack of knowledge of finance.
Elliot’s the smartest I have ever known…. Trust me guys, Elliot will own Milan again….They would be hoping Redbird fails to pay the loan at the due date so they can use the same strategy like they did to Chinese!