RedBird Capital are preparing for a new era in AC Milan’s history and contrary to some claims made yesterday, they will have a majority on the board of directors. And the vendor loan isn’t significant.
Yesterday, French newspaper L’Equipe reported that Elliott have guaranteed RedBird a loan that can range from €200m to €500m based on the equity that Gerry Cardinale is able to raise from investors. However, this has now been denied.
Both La Gazzetta Dello Sport and Il Giornale, as cited by MilanNews, are reporting that the vendor loan will be a maximum of €300m at an interest rate of 7-7,5%. It’s likely that the loan will be worth around €200m in the end.
Furthermore, Elliott will not keep a majority on Milan’s board of directors. RedBird will nominate seven names and Elliott will nominate two names. This is how the new AC Milan will look off the pitch, and yesterday’s reports are thus untrue.