Reports: Claims denied as RedBird will have majority on Milan’s board of directors

By Isak Möller -

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.

Tags AC Milan elliott management Gerry Cardinale RedBird

5 Comments

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  1. Nice interest rate, it will take out money enough for a top class player out of the club, maybe 2, depends on how long the loan is.

      1. Not really. 15% is for people and companies like Yonghong Li, that don’t have another choice due to various reasons. 20 years ago that was the normal interest rate for these kind of loans, not anymore, under 10% now. And they agreed on additional loans so they will make their money + they still hold a minority share so even from any profits paid out at the end of the season to sharholders, a part also goes to them. The only reason why they didn’t go with Investcorp in the end, they even made the deal public even though they agreed they won’t, just to get more money. I understand them, but I don’t get people that talk about someone caring or selling to the best buyer. The best buyer is the one that gives you more money, 100% clear.

  2. who cares about all of this?
    if you have the money and have faith with your sports director, then give them the money so they can purchased the players they see fit to strenghten the squad for the next seasons to come, and then extend their sports director contract!

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