MN: Elliott to remain on Milan board after RedBird sale but with no shares – the latest

By Oliver Fisher -

AC Milan will officially change owners next month and clarification has arrived regarding the terms of the deal between Elliott Management and RedBird Capital.

MilanNews note that there has been speculation in recent weeks about RedBird only taking a majority stake in the club and not all of the shares, with Elliott therefore remaining with a stake in Milan, but in actual fact Gerry Cardinale’s fund will acquire all of the shares.

They will do so for a value of €1.2bn which is the valuation set by Elliott Management from the start. Therefore they will be the majority shareholder except for the shares held by the Small Shareholders.

Elliott will remain on the board of directors under the Vendor Loan contractual arrangement, which gives Elliott the power to appoint up to two representatives on the board. A Vendor Loan is a loan from the seller to the buyer and in this case can be up to €600m with an interest rate around 7%.

It essentially functions as a deferred payment and therefore excludes the inclusion of a third party such as a bank. Therefore, the Singer family will not have equity interests, but will be in an economic partnership with RedBird.

Tags AC Milan


  1. I’m still very skeptical of Redbird, I would’ve been the same towards Investcorp but atleast investcorp actually have the funds

      1. Their networth? Yes it’s not perfectly accurate but atleast its somewhat there and comparing the two, redbird has got a 6B while Investcorp have 34B and I doubt that investcorp have actually got less and the estimate is 30B off… But either way I’m skeptical everytime there’s a change of ownership because it can obviously be very risky but fingers crossed Redbird do everything right!

    1. Investcorp do not have the funds, they want to use debt and put the debt on Milan, this is just like the leverage buyout scheme use by the Glazers to buy Man Utd.

      Redbird’s use of vendor loan is safe for Milan as even if they failed to pay the loan, the consequence is only some of the shares are returned to Elliot.

      1. Fair enough then, I was very wrong then, but yelnats is actually classy and doesn’t have to go all aggressive over a mistake, thank you for correcting me mate! Unlike other people who start insulting

      2. That is completely false. You bash @Gigi claiming he put out info and you just did the same. Terrible. Investcorp is partially owned (30%) and backed by the Mubadala Fund (UAE) which is worth about 100 billion – the same fund that backs Man City….so ya they have the $$$$ and didn’t need to ask Elliot for a loan of 600-800M w a 7 percent interest rate. So Redbirds loan is NOT “safe” and if they do not repay the loan the only consequence is NOT returning some shares to Elliot. If they default on the loan Elliot can take over just as they did with Li. So @Yelnats24 you are incorrect.

        1. Guess who is an investor in Redbird, specifically their YES network, Mubadala fund (UAE), which is worth about 284 billion dollars. Investcorp wanted to take out loans in the name of Milan in order to purchase Milan, we would have been Man U 2.0 (they have paid almost 1.5 billion on their loans interest without paying off their loan). Elliot is offering them a loan of UP TO 600m with 7% interest rate (industry standard is 15%) but it could be as low as 200m, that hs not been decided yet. So yh @yelnets24 is pretty much right

  2. Of course elliot still on board management, Red Bird owe them 600m euro and thats already half of price. Lets hope this RB dont fall like yong hong li failed to pay debt,im too lazy see this club become elliot property again

    1. In term of ownership, worst case scenario will be just slight majority for Redbird.

      I don’t really care abour the percentage of their share as long as they can build new 70k+ stadium ONLY for Milan.

      1. Very very very true, Milan’s own new stadium would be a huge positive, I think if they start with full steam ahead on our stadium and crucial renewals like Kalulu and Leão that’s very positive signs

  3. Ac Milan,Government,City of Milan, should pull National interest,and bring laws who would put State and Town of Milan in position to decide on who would AC Milan should be sold/given to handle.Singe Family had huge luck with Milan last year,with practicaly no investments they have gather nice amount of money,same politics this year,but with plan which is not so optimistic as last year.Therefore,sold to red bird.From one mafioso group to other,it is a desaster,one of the most famous world clubs is sold to a guy who doesn’t have a penny!!!!Sommer mercato for italian master of 50 Mil.???Are you kidding me?For a club who is targeting CL breakthrough?The whole thing should be secured by law….this is ruining of whole sistem in and around AC Milan…pure desaster!

  4. Oh my god, networth is measured in complete asset portfolio from real estates, companies, stocks and also money but usually money is the least in complete networth. Get that straight. Also, in there you do not see debts or mortgages possibly slapped on each asset, meaning Investcorp may have 34 billions in assets but you don’t know what’s on the debit side of sheet balance.

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