Repubblica: Cardinale has raised €600m as Milan takeover approaches – the details

By Isak Möller -

September will not just be a crucial month for AC Milan on the pitch, but also off it. In fact, RedBird Capital and Gerry Cardinale are now ready to close the takeover of the club from Elliott Management.

Ever since the agreement was reached back in June, it has been known that the closing will be in September. It seemed far away initially but we are now just a few days away from RedBird officially taking over the club.

Cardinale, as reported by La Repubblica (via Calcio e Finanza), has raised €600m for the takeover and the additional €600m will come from Elliott’s vendor loan. The interest rate is 7% and the hedge fund will also keep two seats on the board of directors.

Cardinale will take over 99.9% of the shares and the management will also change. Ivan Gazidis will no longer be the CEO as he’s expected to leave in November, although it’s possible he could remain as a consultant from distance (USA).

Paolo Maldini and Ricky Massara will be granted more responsibilities, as they demanded before signing the renewals with the club. Remaining as club president, Paolo Scaroni will be the one to sign off on operations.

Tags AC Milan Gerry Cardinale RedBird


  1. Redbird had to raise 600M and borrow another 600M from Elliot at 7% interest rate. YIKES! Wonder what the percentages of shares on the raise were issued? Being 100% leveraged – I wouldn’t expect Rebird to spend much of anything on transfers for a long while. Talk about “debt” everyone was so concerned over lol. We just took on massive debt. Would not have happened with Investcorp 🧐Sucks to have lots of that “oil” money eh? Newcastle, Man City and PSG fans must be miserable LOL

    1. ” I wouldn’t expect Rebird to spend much of anything on transfers for a long while.”

      They will not (and cannot) spend their own money on Milan’s transfers but Milan’s own funds is another thing.

      People seem to think owners can deposit and withdraw funds from the clubs bank accounts just like that. It’s not how it works.

    2. Exactly, I said the same, we have like 600M debt practically, it’s like Man U. They won’t spend much, Man U still has massive tv right. For the future, don’t expect a renewal for Leao and Bennacer, also not big signings. But yeah, Investcorp would be so bad jaha

  2. Owner’s money isn’t the same as club’s money. The 600M€ Redbird owes Elliott is Redbird’s money (or lack of actually) and it doesn’t concern Milan’s budget/funds/accounts.

    1. Yes it does when your paying 7% annual interest on it LOL. That is 42M in interest payments PER SEASON. That comes out of the clubs budget. So WTF are u talking about?

      1. If the owner buys a Ferrari. Is that car the owner’s or the club’s he also owns? If you say the club’s, why so?

        FFS, some people are so f*ng dumb it still amazes me.

        Elliott didn’t sell the club to the club. It sold it to Redbird. Once again… Redbird’s money isn’t Milan’s money. Redbird’s debts are not Milan’s debts. How f*ng hard is it to understand? I’m obviously asking too much again. The kid doesn’t even understand 40M€ is better than zero.

        1. Your analogy makes no sense. The money borrowed was Used for the purchase of the club you idiot. Milan (club) is the guarantor of the loan in the event Redbird defaults dip$hit. So Redbird will lose the club and their investment if they default – just as Li did. So ya their debt matters you donkey. They have to pay 42M/year to finance the loan. Honestly kid Your a fkn moron it’s not even funny. And who said we will lose Leao for zero?? Do you really think M&M would do that again. LOL. Your a proper idiot. Does your mom still tie your shoes at 38?????

    2. Do you always just make up fake facts to try and support your nonsensical arguments?? Unreal. Stop making up BS you know nothing about. “It doesn’t concern Milan’s budget/funds/accounts”??? Are u serious?? LOLOLOLOLO. First you said Redbird can’t spend lots of $$ because:

      “They will not (and cannot) spend their OWN money on Milan’s transfers but Milan’s own funds is another thing.

      People seem to think owners can deposit and withdraw funds from the clubs bank accounts just like that. It’s not how it works.”

      Then you said borrowing 600M doesn’t matter for Milan (club) because: “ Owner’s money isn’t the same as club’s money. The 600M€ Redbird owes Elliott is Redbird’s money (or lack of actually) and it doesn’t concern Milan’s budget/funds/accounts.”

      Do you even realize how much of a walking contradiction you are??? So I guess every owner (like Li) can ask Elliot for $$ and if they don’t repay it doesn’t matter because it’s personal money and not money for the club?? So I guess Li borrowed Elliot
      separately and not for the club????? I guess then Li should still be Milan’s owner then right? Cause under your crazy/fake scenario – didn’t matter that Li defaulted on the loan Elliot gave him because it was not the clubs $$$????? Wow what a mistake some of the best professional finance experts and lawyers money can but made!! You should call Li right away @bb and let him know Elliot has no right to own Milan. Maybe he will give you a finders fee! Hahahahahahahahaha! WOW you are an insane IDIOT

      1. Poor little Juro… Maybe one day you grow up and realize what an idiot you are. But the odds are strongly against that.

        “Do you even realize how much of a walking contradiction you are?”
        Read again. There is not contradiction. You just don’t understand what you are reading. But that shouldn’t surprise anyone.

        Let’s back to this matter once you graduate your primary school. Maybe then you understand how companies and ownerships go. Likely not though. 😀

        1. Funny how all you could do was insult me and not explain why under your crazy made up fantasy scenarios – Li still doesn’t own the club?? Care to explain to all of us? Ya that’s what I thought. You are a complete MORON kid. Stick to that paper route lol. I mean this takes the cake. Worse than your “sell Leao for 40M” comment. hahahahahahaha!!!!!!!

    3. @bb Owner’s money does become the same as Club’s money when it’s invested IN the club mate. IF Cardinale chooses to pay the debt by the revenues of his other businesses, then it’s fine… But thats a BIIIIG If. if it comes from Milan’s finances, Milan will DEFINITELY gonna end up in Elliot’s hand again.

  3. No worries. The club will end up back in Elliot’s hand by 2024. We are just witnessing Li version 2.0 but MUCH worse as Li took only 300Mil+ in loans.

    It was Elliots plan all along, investcorp just didn’t agree to loan money from them is why the deal fell through. There is no way Redbird is capable of running a club like Milan. They don’t have ANY money.

    Cardinale is literally begging around and cleaning random Billionaire’s shoes to lend him some money which we are adorably calling ‘raised’ money. No one’s fooling the fans here.

    Shrewd business from Elliot tho. Lets hope that MMM and Pioli can bring Miracle results with the transfers and team. Otherwise we are in for a shock.

    1. @Milan4lyf, this is exactly what I said couple months ago. When I said Elliot is vulture fund, people here start attacking me. Somebody here said, in 2024 Elliot will be owner again, and he is right. Redbird bought club worth 1.8B (Elliot still keep 30%) without their single Dollar? Very strange.

      1. Elliot definitely is a vulture fund. But as Milan fans, they earned our respect by bringing the club back from the brink of destruction.

        But.. Everything about this deal seems fishy. Nothing makes sense. This purchase makes NO sense. Elliot is still gonna make all the decisions.

        I mean If I borrowed money from the board of directors of my company to own my company in the first place, I would have to listen to whatever those directors say.

        Eitherway, Elliot still owns the club.

  4. 600M vendor loan?! 😀 heh I guess that says a bit about the “budget” Redbird operates on, better than the unstable “oil” money… Welcome to next decade of loans and free players….

  5. I completely agree with this statement! ACM could become a kind of Black Hole of Elliot. Borrow money and offer the famous club as bait for reckless investors. The Chinese are the first victim, let’s move on… Honestly, as a big fan, I don’t like this! What does all this mean for us in the future !?

  6. Ok guys redbird capital has over 6 billion USD worth of holdings generating billions of dollars in profits. Redbird is using loans as a way to offset risk (600m of Redbirds own money < 1.2b). Redbird has access to billions of dollars funds which it can inject into the club as it needs. However it’s clear that redbird is set to run AC Milan in a business friendly way so I’d expect the continuation of deliberate spending to continue. I think the idea continues to be to make Milan a self sufficient club as opposed to what it used to be.

    1. Your wisdom gets wasted here as some people fail to understand even the basic things such as how owner’s loans differ to the club’s loans =)

  7. When you buy a comapany a percentage of the money that the company makes is used to pay shareholders and others. In this case its the money from player sales and tv rights and prise money. With a rich owner who is in the game for the name and not earnings I think it would have been better.
    But I dont know how things work.
    Can the owner of the club pull money out from the club?
    How is the new owner planing to pay back that money he has raised, and how will he pay back elliot and the 7 percent?

  8. Well there is a difference between ones own money rather than being capital fund….what red bird used is invested investors money in paying half of 1.2b€ and borrowing other half from elliot it self…..that’s one way of profiting for elliot investment inspite of solid returns on initial investment they are gently licking the cream off as well with 7% on loan funds. Thats some business acumenship….to sum it up redbird using investors money to buy and loaning rest from elliot obviously seems like milan as guarantor in non repayment…so it’s three ways first cover elliot loan and return, second profits to investors and lastly invest in club transfer business or cover losses which will run for next good years….that’s a tough thing….with investcorp it was a capital fund using a single private investor money operating from uae and saudia……you all decide who was worth taking a risk…..I again will say investcorp was simply a vehicle to buy an asset for individual investors….

  9. Redbird borrow from Elliot €600M with 7% interest. That is €42M per year. Who is going to pay that 42M? Redbird from his pocket or from ACM account? Than, more €600M from investors. Those investors expect profit from that €600M. Where from, their profit, is going to be paid: from Redbird pocket, or from ACM account?

  10. We do not have enough information to properly judge on this takeover. Nobody knows the plan that’s behind it, it’s all speculation from anxious fans. Personally I think Elliott has found an agreement to build a new stadium for Milan, which is a guarantee of revenue, but they always said they wouldn’t build it themselves. Thinking the club will become a big sellout of players and going back to the bottom because of this takeover is ridiculous because that would mean Elliott will risk losing their own loaned money as well and get the club back in a dreadful state like last time with Li. That’s way too much risk to take without any guarantee they will succeed to rebuild again and Redbird has a lot more experience than Li had, so they won’t just do something that stupid either. I don’t believe this takeover will have a negative effect on the club. From the moment Elliott has stepped in, things have only improved on and off the field. There’s no denying that, unless you still don’t believe we won the Serie A last season. A takeover by Investcorp looked like the easy solution, but big money takeovers don’t always lead to success. Just ask Man City or PSG when they will finally win the CL, which is the goal that their owners are aiming for since they took over. When somebody buys a club just to put millions in it to win trophies and not to make it sustainable, they often think they know all about football as well and it’s their money so they influence the transfers and management too much. Just look at how happy PSG is with Messi. It’s always better to build a team than to buy a team. Redbird will give more responsabilities to M&M and split with Gazidis, which I think is a good start. The rest we will all have to wait and see, but life is more fun when being optimistic. Especially after another good performance of our club tonight.

    1. Elliot literally risks nothing.

      They already got 600 mil and gave 600 mil in loan to redbird while keeping 30% of the share because the club is valuated 1.8bn by Elliot and redbird.

      If Redbird fails to pay, Elliot gets to own Milan again which means a return of 1.8bn against 600 mil loan.

      if not, Elliot still makes over 100+ mil from the interests on top of that loaned 600 mil.

      Silverlining is, Milan’s performance and Maldini’s transfer policy. And if Redbird and get the stadium built, they can easily repay the loan and start making profits.

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