US investment fund RedBird to buy Serie A champions AC Milan

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ROME: AC Milan said on Wednesday (Jun 1) that its current owners, investment fund Elliott Management, have agreed to sell the newly crowned Serie A champions to rival fund RedBird for €1.2 billion (US$1.3 billion).

“The transition to new ownership will take place over the summer, with an expected closing no later than September 2022,” the club said in a statement, adding that, under the terms of the deal, Elliott will “retain a minority financial interest in the club and seats on the board of directors”.

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Elliott Management acquired the Italian club in 2018 when Chinese businessman Li Yonghong was unable to repay a loan he had taken out when he bought the club from Silvio Berlusconi’s Fininvest in 2017.

In April, Italian media reported interest from Bahrain-based investment fund Investcorp, but the talks ended without a deal at the end of May.

Italian media reported that the deal between Elliott and Investcorp collapsed as seven-time European champions Milan’s owners pushed for a higher purchase price off the back of the Scudetto.

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The Gazzetta Dello Sport said Investcorp would not budge from a price of around €1 billion they thought had been agreed and already see as an overvaluation.

And RedBird not only offered a higher fee, they also allowed Elliott to remain minority shareholders and keep both sporting directors Paolo Maldini and Frederic Massara in place.

Elliott issued a “Letter of Gratitude” to the Milan fans round the world.

“We make this transition feeling a deep sense of humility and pride – and most of all, gratitude for the experiences we have shared with the club, with the city of Milan, and with all of you.

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“For your unrelenting passion, belief, and energy, we thank every member of the AC Milan family.”

It rounds off quite a season for Milan, who ended an 11-year hiatus in being crowned Serie A champions last month, finishing two points clear of their city rivals Inter.

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