CEO Ivan Gazidis is set to make a nice sum from the sale of AC Milan to RedBird Capital by Elliott Management, according to a report.
Both Tuttosport and Il Sole 24 Ore (via PianetaMilan) are reporting that the sale of the Rossoneri will make the executive substantially richer as he signed a contract with Project RedBlack contract – a Luxembourg company which owns 99.93% of Milan through – Rossoneri Sport Investment Luxembourg which entitles him to a lump sum from the sale.
This contract states that Gazidis should receive an incentive ranging between 5 and 7.5% on the capital gain obtained from Elliott Management on the sale of the club to RedBird Capital, which was made official at the end of August.
That capital gain figure is around €500m as Milan switched to Gerry Cardinale fund for €1.2m. Elliott put €300m into Milan in July 2018 to obtain the club from Yonghong Li and paid €533.25m after 30 June 2020, but the €128m lent to Yonghong and recovered after his farewell must be subtracted, so in total Elliott’s investment was €705.25m.
If the percentage in the contract were 5%, then Gazidis – between shares and cash – will receive an amount exceeding €20m not directly from Milan, but from Project RedBlack.
So gazidis getting €20mn and we can’t find the extra funds (€1mn/year 5 years) to stretch to meet Leaos contract demands.
I don’t blame Gazidis even he was greedy and it worked out for him. But management should think pretty clearly about having clauses like that for board members when we our budget is so tight, we aren’t in EPL.
Don’t tell me Gazidis is some glistening oracle he’s the only guy in the whole universe that could have got Milan some sponsorship deals to boost the brand.
Bonuses of this type are fairly common at the top executive level and is just part of doing business.
that money has nothing to do with clubs capital and player salaries. its from the sale
“that money has nothing to do with clubs capital and player salaries. its from the sale”
This. I don’t get it how people fail to understand this and many other things regarding the funds of the owner & the club itself.
same. and the article explains it pretty well 2, also dude seems like he doesnt know that the board members are the managment 😀
Ppl don’t understand how upper management works or what? Maldini and co are risking their entire future careers in management by doing the job they’re doing. They have to get compensated as such. They’re not working for free and esp for such a big club with the type of near impossible goals like reduce debt but still win🤷♂️. Not sure what exactly ppl think is going on lol
For the way he has helped turn around the fortunes of the club its money well deserved