MN: Management, a precedent and zero bonds – important information on Milan’s sale

By Oliver Fisher -

Some clarifications have arrived regarding AC Milan’s now probable transfer of ownership from Elliott Management to Investcorp.

Franco Ordine’s weekly column for MilanNews carries some interesting information regarding the takeover, starting with confirmation from financial expert Alessandro Giudice that Investcorp will not issue bonds to raise money to finance the takeover of the club, as the condition set by Elliott would not allow for it.

As soon as they got hold of the club in 2018, Elliott paid off the bond, thus cleaning the club of that debt. They expect the next shareholder to behave in a similar way, and while they are naturally free to be financed by anyone for the operation, the important thing is that they do not burden Milan with any debts.

This is therefore a condition and not a clause because 1) Elliott do need to sell and therefore they can pick who they sell to and 2) Elliott have received numerous other offers that have not been considered.

There is a dangerous precedent in this matter: when Massimo Moratti sold Inter to Thohir and the Indonesian businessman froze the debts instead of clearing them. These debts then ended up with Suning and they recently issues €420m in bonds which cost €30m a year for 5 years in interest.

Regarding the management, the block of Paolo Maldini, Ricky Massara and Geoffrey Moncada should have their contracts renewed and the hope – adds Ordine – is that the same choice will also be made for CEO Ivan Gazidis who has really helped transform the club off the field.

The room for investment is there too. Milan spend a sum that is between €165-175m per year when factoring in salaries and amortisation of players (their yearly cost which equals transfer fees spread over duration of contract). This is almost €100m less than Inter.

Tags AC Milan
Serie A Standings

Live football scores . Current table, fixtures & results.