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