The amount that RedBird Capital will have to repay when the vendor loan from Elliott Management expires has been confirmed by a report from Felice Raimondo.
As a reminder, in order to purchase the club RedBird chose to use a vendor loan, essentially deferring the payment for the full valuation of the club until 31 August 2025, but there is an interest rate attached.
Cardinale at the time certified the methods with which he purchased Milan from the Elliott fund: “The reality is that the RedBird ownership controls 100% of Milan: it has put in 600 million of capital and controls 100% of that capital.
“I believed that continuity with Elliott was a virtue and therefore I preferred a pure financing from them, without shares in the capital, for 550 million at a very interesting interest rate, which I will pay in three years.”
Felice Raimondo on his website has taken a look at the documents published in the financial statements of Rossoneri Sport Investmente Luxembourg: “As of 31 August 2022, the Company has entered into a financing agreement with ACM BIDCO BV for an amount of €560,000,000.00.
“The loan bears interest at a rate of 8% and expires on the 3rd anniversary of the closing date. On 21 October 2022, the Company received the amount of €10,000,000.00 as a partial reimbursement.
“On 27 January 2023, following an assignment agreement with Project Redblack S.à rl, the Company transferred to Project Redblack S.à rl 95.73% (equal to €526,515,000.00) of its right and title to the financed loan as a payment in kind.”
Another important fact is that Elliott’s credit – starting from 27 January 2023 – is transferred to the Project RedBlack company in Luxembourg , in turn controlled by Elliott through King and Genio Investment LLC based in Delaware.
From this transition it is also clear that Elliot only holds the credit on 95.73% of the loan since the remaining 4.27% is held by the Blue Skye company, which will continue to claim its rights on the credit in proportion to its shares.
ACM Bidco is instead the Dutch company into which RedBird has transferred the Milan shares and the final figures emerge from the balance sheet filed with the Chamber of Commerce in Okanda.
As of June 30, 2024, the debt had risen to €634,332,362m, up by approximately €49m compared to June 30, 2023 . It is therefore easy to calculate, factoring capital and interest, that Elliot will have to receive €700m by 31 August 2025 (the official maturity date).
The loan is going to be refinanced until they can sell the club in the future. The financier is going to collect interests through the years (Elliott) and Red Bird is going to get a payday once it sell the club.
and where do we think these repayments are going to some from?
AC Milan will be funding the interest on this HUGE debt, just like every other American financier involved in football
What point are you making? Every owner carries debt…
The point he is making is that AC Milan is tragically owned by mere businessmen rather than some oligarch or monarch equipped with capital granted by god itself that they just give to the club unconditionally because they love it’s fans so much… Ain’t that what ultra rich always people do, lmao
No man, Jerry is a saint, he would never do that. It’s like having many companies in Delaware, Luxembourg, etc. for only one club, it’s because Jerry wants to give jobs to people everywhere and it’s absolutely not to evade taxes. Everything Jerry does is in the interest of the brand, I mean club, and in the interest of mankind.
“AC Milan will be funding the interest on this HUGE debt”
Nope. #Fakenews
Thanks Donald for another riveting insight
Don’t get your hopes high my friends, they’ll probably refinance the debt since interest rates are dropping. We’re stuck with US vultures.