While the rumours from across the navigli speak of Inter being in a very precarious financial position, AC Milan’s owners RedBird Capital Partners continue to go from strength to strength.
According to Calcio e Finanza, RedBird – the private equity firm that controls AC Milan – has ‘renewed its arsenal of deals’ with $4.7bn (at current exchange rates, €4.3bn) to invest in more sports, media and financial services businesses after two years filled with some high-profile transactions.
This was reported by the US newspaper The Wall Street Journal, taking data from the SEC (Securities and Exchange Commission), the US federal body responsible for supervising stock exchanges.
Currently, RedBird are backing Skydance Media, which is negotiating an acquisition of Paramount Global. They recently completed the acquisition of British production studio All3 Media for €1.37bn through a joint venture called RedBird IMI, which has Sheikh Mansour bin Zayed Al Nahyan ‘s International Media Investments as another partner.
Paramount received an all-cash offer of $26bn from Apollo Global Management and Sony Pictures Entertainment, which includes the assumption of debt, estimated to be $14.6bn.
RedBird first backed Skydance in November 2019. The latter is seeking to acquire Shari Redstone’s stake in National Amusements, which would give her control of Paramount, initially offering to pay up to $2bn, and then combining it with Paramount.
After receiving expressions of interest in May 2022 for its fourth flagship vehicle, which closed on over $3.28bn, RedBird closed investments in asset manager and financial advisor Arax Investment Partners, in Renault’s Alpine F1 auto racing team and in the creation of EverPass, which broadcasts live games to bars and restaurants via the NFL Sunday Ticket Network.
As for return on investment, RedBird has achieved returns of more than three times its invested capital through sales of Compass Datacenter and professional football and baseball player marketing firm OneTeam Partners.
The US fund sold Compass to an affiliate of Brookfield and the Ontario Teachers’ Pension Fund last year. The deal was valued by PitchBook Data at around $5.7bn. RedBird invested in the company starting in December 2016 along with Ontario Teachers’.
In such a complex whirlwind of operations, RedBird obviously made mistakes too. For example, in March a political case arose in London over the attempt by the RedBird IMI joint venture to acquire The Telegraph newspaper and the Spectator magazine.
The protests, which opposed foreign ownership for one of the country’s most important publishing groups, led RedBird IMI to abandon the negotiating table.
What does this mean for Milan? Well, fans never have to worry about the owners failing to meet capital requirements, given the sheer magnitude of assets under management. Such aggressive expansion is also indicative of ambition that will hopefully be shown this summer.
Cardinale will pocket all of the money
Cheapskate!!
The next Glazer
?
Glazer don’t do anything for United. Increase the club debt. Unorganized player purchase. Don’t build any infrastructure. Club become a joke and in downward curse ever since he come.
If you can’t see how different both are, no words will get though to your brain.
The Glazers have not invested well in the infrastructure but they have spent vast amounts on player recruitment.
They’re certainly not model owners for fans but for their investors, they have turned an asset valued at 800m when they bought it into one worth 5-6bn, so they’re doing fine in that regard.
Source?
You don’t follow Man United or haven’t followed them in a decade so don’t speak nonsense.
Financially the Glazers did more then fine with Manchester. As a sport club on the field not so good tho. Milan is moving in a similar direction, good for the investors not good for the fans.
…another broken record player…
Seems like the MEEZ virus is more infections than covid…
The truth of the matter is cardinale bought Milan just come make money from the club and nothing more.
Any other things he’s saying or doing is just to make us we fans feel relaxed like he’s working hard to bring back this club to it glory days.
Trust me in the next 2-3 years you will see cardinale’s banner from the curve sud “Cardinaleout” by then he has already made all the money he wants and he will be happy to leave.
If truly cardinale is here to bring back Milan to the glory days, he would have kept M&M and give them the opportunity to work with the 30 project they prepared and presented to him and see the outcome but because he knows that won’t bring the quick money he want to come and acquire, he had to let them go.
Am so disappointed that someone like cardinale will be the owner of this great club Milan.
It’s a shame, no desire from all the useless management we have presently.
Just a pay cheque business men.
I would have accepted M&M’s sacking if he had sacked Pioli too
But he didn’t do that
Talk is cheap, sadly I wonder Who Are the real fans and if they are blind to see anything, This for fact there no club owner that those not want to profit but before you go out to spend you must go d several means of generating funds, the easiest means is having a stadium, that is by far the most difficult thing to achive in Italy and it will also cost us about a billion and yet people are too blind to see Cardinale’s effort to achive this the more money you make the easier you can spend, as great as BERLUSCONI is he could nt achive building a stadium despite supporting her dauther Barbara with every thing they faild to achive what seem to be the most difficult thing, we are nt in debt the club is financialy ok and yet CARDINALE is a problem to some of you, well this is what I see MILAN will achive great things in two season even before we move to our own stadium we will be ontop of Europe and Italy again under the ownershipof CARDINALE.
Cardinale has invested RedBird into this because he sees it as a brand which can be increased in value. Anyone thinking they are going to just be happy taking small annual profits out is deluded.
The increase in value won’t come from slightly better Serie A positions, but from a few potential changes:
– Most predictably, it gives them clout to acquire huge amounts of high value land when they build a stadium. A new stadium will increase the club’s revenue, but more importantly it means concerts and hotels and surrounding land to build on. It’s assets.
– A Super League, would probably be the investors’ dream, a gate kept business model with franchises like US sports where they can’t lose – this would spike the value.
– Serie A investment – from a third party or nation state investing in the league as a whole, the dream being a competition in line with the Premier League. Realistically, very unlikely.
So realistically, Redbird are in this as an investment project knowing the best way to raise the value of the club is for it to own a stadium and surrounding land and facilities. It’s also a useful soft power tool in the meantime, especially for deals RedBird want to do with Middle Eastern investors.
Yea, no, you’re right….
Anyone not spending like Inter is a cheapskate. Let’s bring in players we can’t afford and bring the club to a point of repossession, like the Chinese defaulted.
Like Zhang is about to lose this Inter… Is that what loving your club is worth? Oblivion? His loan is due monday and he’s about to lose the club which will get dismantled and sold off.
What business does Cardinale have putting Milan on a sustainable and solid financial foundation? Crazy Americans, I tell ya!
Merda is not even spending that much
You are so pathetic
Fact is, Cardinale is not even willing to spend in the position we need the most… the coach
Why? Because they haven’t come out and told YOU who the next coach is? LMAO!!!
Entitled much?
I don’t know if there’s a lot of frustration in your life or you’re angry and channeling it out here or maybe you’re allergic to change… it’s not healthy man.
Find a happy balance in life. 🙂 I mean that sincerely.
I imagine most of the people here lead very sad lives and come to this website to just complain about everything, thats why its a waste of time to even engage at this point
I can guarentee you even if Milan win the league next season they’ll complain about how their favourite manager would’ve won it better and other crap
It’s. Not. Cardinale’s. Money.
What are media trying to portrait of him?
I’ll put it simple. He’s a key account manager of a fund dealing with billionaires and investing their money around.
Who said it is?
“Well, fans never have to worry about the owners failing to meet capital requirements, given the sheer magnitude of assets under management.”
Whoever wrote this article clearly doesn’t understand how it works with hedge funds and I believe many on this blog as well.
LOLOLOLO….sorry Ollie BUT how did you come to the conclusion that:
“Well, fans never have to worry about the owners failing to meet capital requirements, given the sheer magnitude of assets under management. Such aggressive expansion is also indicative of ambition that will hopefully be shown this summer“
First of all – the assets of Redbird have nothing to do with how much $$ they will invest in the club. Redbird was already worth billions prior to these deals and it had zero impact on our club. That is not how it works and you are creating a false narrative that because of these deals (that have no impact on ACM) there is a correlation that will somehow benefit and ownership will start investing heavily or “ambitiously” in the team.
I’m sure I will get banned for this post but pls don’t assist Redbird in creating a false narrative for the fans. That is terrible
Yeah, it’s like saying in early 2010s that Milan fans never have to worry because Silivio has a net worth of 8 billion.
So funny read the comment. Ppl dont even know that is not gery money . Gery not the owner of Red bird, RB are fund investment with many investor inside, gery job are to make that investor get profit from their investment in RB. Stop thinking this investment fund will burn money like oil kingdom ( PSG ) in hefty transfer budget or super salary like PSG give to their player ( 480m euro gross salary/ season ) . PSG gross salary 4 times bigger than ACM . Stadium important for RB because that will increase their asset also make the club more interesting in the eye oil kingdom. Inter in danger next week but not affected player or coach just changing owner from zhang to oaktree
For being such a big corporation, they should have hired proven experienced menagment. And not these nobodies that claim to be management.
Red Bird is slowly killing Milan. Milan now only a top 20 team in Europe.
1 question from me, how much for milan mercato next season ? the fans no need multi billionaire money that actually not to invest to mercato, Haha…