Sole 24 Ore: Losses covered and additional funding – more details on RedBird’s takeover

By Oliver Fisher -

Some more information has emerged regarding the structure of the deal that will see RedBird Capital purchase AC Milan from Elliott Management.

Il Sole 24 Ore (via MilanNews) reports that Gerry Cardinale’s RedBird fund will be able to finalise the takeover thanks to a loan from Elliott Management which can go from €200m to €550m based on the equity that Cardinale will be able to collect from the underwriters of the operation, given he is still on a mission to raise funds from investors.

Not only that, but RedBird will in fact be able to benefit from further funding from Elliott (at a rate of 3%) to cover Milan’s future losses until 2025.

That means that Elliott have been quite flexible in the negotiations and have been happy to help RedBird with what they need with regards to guarantees over funding for the deal and also removing any possibility that they will be burdened with losses from year one.

Tags AC Milan

12 Comments

    1. Yeah, I kind of suspect that was the additional reason behind selling to them. Getting more money from interests.

    2. Loaning them money is a way to allocate some of the money to transfer budget. So instead of being paid right now to Elliot, the money is used to improve the team.

      I guess 2025 is the deadline they set for the new stadium.

      1. They are loaning the money to buy the club, they don’t have enough. Additional loans available to cover future loses, have you read the article?

  1. I wonder if any fans really understand the complexities of a huge deal such as this – i mean really understand, aside from reading headlines. I’m not sure i do!

    1. People think they have everything figured out. Especially about the finance part of running a prestigious football club. I mean… They have been watching the players play for years so they’re definitely qualified to give financial advises to the managers, right? 🙂

  2. If Elliot (vulture fund) is happy, than we are on right path. I can imagine Gerry Cardinale how nervous he is right now, running from one to another investor begging for few millions.

  3. If Elliot (vulture fund) is happy, than we are on right path. I can imagine Gerry Cardinale how nervous he is right now, running from one to another investor begging for few millions.

    1. Vulture fund is happy and you think we are on the right path? They are happy when they make more money, and any interest to them will be paid from Milan profits. So less money for Milan, more for Eliott. How is that the right path?

      1. And if you forgot Li Yonghong was also good for Elliott, anyone taking money from them with interest is a job well done, that is what they do.

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