This afternoon, news has emerged about the deal between AC Milan, RedBird, Comvest and Elliott Management, which will see the club change hands.
When RedBird first arrived at Milan, they did not fully purchase the club. Instead, Gerry Cardinale paid around half of the price, with the rest paid in the form of a vendor loan. Of course, this is completely normal in a transaction of this size.
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However, paying back that loan has not been as straightforward, and there have been several rumours about the future. With Cardinale looking for investors, there have been regular suggestions that the club could be sold already.
Though, these ideas have been shut down quickly whenever they have arisen.
Comvest negotiations advanced
Now, though, it appears that Cardinale and RedBird have found investment, and it will arrive from Manulife Comvest, a company that allows for greater credit strategies and direct lending, as opposed to going through a bank.
As Calciomercato.com has learned, the amount loaned to the ownership will be around €650 million, and things could be agreed soon, with a completion date of March currently targeted.
If this agreement goes ahead, Comvest would then replace Elliott as the lenders, giving the Rossoneri longer to pay back the loan with lower interest rates, which is deemed to be a ‘fairly common operation’ in the financial sector.
As a result, the Elliott influence on the club would stop, and this could see members like Giorgio Furlani replaced by RedBird hires.
The finance people here, is this taking a loan to pay off a loan?
Yes but on a longer term and with lower interest.
No. This seems to be that Comvest Will overtake the loan from Elliot. Benefit for redbird seems to be better terms
Elliot is going to sell the loan receivable from RedBird to Comvest. Furlani is Elliot’s insider on the executive management team. With Comvest taking over the loan, we can expect a new CEO designated by either RedBird or Comvest. But Furlani will be a goner for sure. Good news.
Hopefully the interest on the loan from Manulife comvest is substantially lower then it was with Redbird (it will be lower for sure, questions is how much lower).
Thats good new for AC Milan. How much lower we would have to wait for next years financial statement to see. But with lower interest rates on a substantial loan, plus champions league football next season, Tare and CO should have a good budget for the summer mercato (probably the biggest since the early Berlusconi days speaking in relative numbers).