AC Milan could undergo some corporate changes next year, as Gerry Cardinale is looking to pay off the debt he owes Elliott Management.
When Cardinale and RedBird bought Milan in the summer of 2022, a vendor loan for roughyl half of the amount was agreed upon with Elliott Management. This loan was refinanced at the end of last year and then, the principal amount stood at €489m.
Read SempreMilan ad-free and get access to exclusive news. Click here for a free trial!
Last week, Calcio e Finanza reported that the loan now amounts to €523m due to interest, and that Cardinale is actively looking for investors either to pay off the loan entirely or refinance it. Now, more updates have arrived on the matter.
Corporate changes on the cards
In his video on YouTube yesterday, the reputable Matteo Moretto spoke about the club’s corporate situation, stating that there could be some changes on this front. Indeed, if Cardinale were to get a new loan partner, this partner would have to be represented on the board of directors.
“I can also tell you that from a corporate point of view, in 2026 we can expect some possible changes, as there have been significant movement on the club’s financial situation.
“It remains to be seen if part of Milan will be sold, or if there will be another loan to repay the debt to Elliott. For now, the situation isn’t so clear, but Milan could change face from a corporate point of view,” he stated.
Hopefully, there will be a law that prospective buyers cannot purchase clubs with borrowed money. Logically, this is not beneficial for clubs because they could end up selling the club’s assets (including important players in the club).
Using debt to finance development is Capitalism 101. In any case, the pool of potential buyers would shrink to almost nobody outside of petrostates, and even they can’t buy all of the football clubs.