MN: The €500m clause that allowed RedBird to beat Investcorp to Milan takeover

A clause that RedBird Capital were happy to agree to seems to have made the difference in the talks with Elliott Management over buying AC Milan, a report claims.

According to what is being reported by MilanNews, the fact that RedBird consented to an ‘earn-out’ clause made the difference during the negotiations. Through this clause, the seller – in this case Elliott – will constrain the price of the club also based on the potential for growth.

In essence, there is a fixed figure, which will remain regardless, and a variable price which is the earn-out part, and that will vary according to the objectives achieved in a given period of time by the new owners RedBird.

Translated into practical terms, the fixed figure is €1.3bn as agreed between the two parties, while the earn-out should reach up to €500m for a potential transaction worth approximately €1.8bn.

It is likely that the new stadium is a motivator behind the agreement, while the report adds that the new asking price and increase in requests from Paul Singer’s fund seems to be linked also to the evaluation of Chelsea.

Tags AC Milan

12 Comments

  1. This is insane! Does anybody think, this is good for Milan? How is possible to pay big money to keep good players? To build new stadium? To pay dividende to Elliot? And, Redbird to make some money, when even Elliot has now -100M€? Maybe, if we win CL 5x per year, 3x Scudetto, and every game has 2 million people on stadium.

      1. Yeah these soul less Arabs are better enterpreneur than stingy Americans you will get your answer in upcoming transfer window…..being a Middle Eastern you don’t even know who investcorp are backed by…..

        1. we need arabs to be competitive? are you thinking straight?

          Go support Man City if you like arabs so much, such a great club, literally no sense of teamspirit there and their stadium atmopshere is atrocious and people here want to turn Milan into that

          rofl kids these days

          1. Arabs oil money investors are known to spend the money on their toys how be it more bountifully and openly without closing an eye compared American investors who run clubs like a coffee shop.

    1. Clubs don’t just make money from winning cl serie a and such stuff although that’s a good way to represent yourself. My main concern is if they be willing to invest money in players or are we about to end like Manchester United or pretty much every other american owner club. I personally preferred having Arab owners they get always better sponsors

  2. My only hope is that we don’t end in hands of greedy owners but seeing that they own part of liverpool and we all know that Liverpool invested in crucial players position such as Van Dijk, Alison, Fabinho, thiago, Jota and Diaz unlike Elito who bought Milan just to made money of it and sell every person that can understand football at least a bit saw that Milan was desperate for a Striker and Right wing seeing that they were serious serie a contenders we ended with an young striker who costs less than Zlatans yearly wages and also letting players leave contract free such as Donnaruma and Kessie we had gold in our hands but they chose to let it go

  3. This isnt the 90’s, nothing about football is fair anymore, not uefa, not the clubs and certainly not the system.
    i would rather an arab investor buy milan with maldini and massara still managing the expenses and be more competitive like the top clubs than an american investor who we all know are stingy and remain like arsenal for the next decade.

  4. So much prejudice here. 1/3 of people say Americans only think about money and another 1/3 say Arabs are just sportswashing. Hasn’t the woke thing taught you anything? LOL

    Chill. No one here knows for sure what being owned by Arabs or Americans will be like. NO ONE. Just wait and see and stop being so goddamn racist.

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