RedBird to buy Italian soccer club AC Milan in US$1.3 bn deal

June 01, 2022 10:32 AM PDT | By Mridul Gogoi

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RedBird to buy Italian soccer club AC Milan in US$1.3 bn deal — Image source: © Writer | Megapixl.com

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Highlights:

US investment firm RedBird Capital Partners to own Italian soccer champions AC Milan in a US$1.3 billion deal.

RedBird Capital Partners is likely to close the deal in September this year.

Current owner, Elliott Management will also retain a small stake and have members on the board.

Italian soccer champions AC Milan will have a new owner in US investment firm RedBird Capital Partners. RedBird has stepped up the heat in the elite European game by agreeing to buy the champion club for 1.2 billion euros (US$1.3 billion).

RedBird will take over the club from current owners Elliott Management, a private equity group. Elliot will still have a very small stake in the club and members on the board.

AC Milan have recently clinched the Italian Serie A league title for the first time in 11 years.

In less than a year ago, RedBird had bought a 10% stake in Fenway Sports Group, the holding company that owns Liverpool Football Club and professional baseball’s Boston Red Sox.

New York-based RedBird also owns a controlling stake in the French soccer club Toulouse.

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RedBird to buy Italian soccer club AC Milan in US$1.3 bn deal © Redazione745 | Megapixl.com

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Overseas investors flocking to buy Italian soccer clubs

Italian football clubs have become the fancy of overseas investors who are happy with cheaper valuations than the pricey English Premier League and other rivals in major European leagues.

AC Milan were a force to reckon with in European soccer under the ownership of former Prime Minister Silvio Berlusconi. The club last won the Champions League in 2007.

RedBird founder and managing partner, Gerry Cardinale said that soccer clubs are successful on and off the pitch. They have a value proposition from an investment perspective.

"RedBird's investment philosophy and track record in team ownership has shown that football clubs can be successful on the pitch and sustainable off it," Gerry Cardinale added.

The firm is happy in being a catalyst for Milan’s next chapter steering them to the top of Italian, European, and world football.

The transition to new ownership will happen over the summer, and the deal is likely to be closed in September.

Bottom line:

Current owner Elliott took the reins in 2018 when Chinese businessman Li Yonghong couldn’t meet certain obligations linked to a financing package to purchase the team from Berlusconi in 2017.

AC Milan’s CEO Ivan Gazidis is a former Arsenal executive. Its technical director Paolo Maldini is a former player.

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