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.
