Repubblica: Milan statement clarifies relationship between club, RedBird and Elliott

AC Milan have had a statement published in this morning’s newspapers aiming to clarify the relationship between RedBird Capital and Elliott Management.

As a reminder, when Gerry Cardinale’s RedBird bought Milan from Elliott in 2022, he only paid €650m for a deal that was valued at a total of €1.2bn. The remaining €550m was transformed into a ‘vendor loan’, granted by Elliott to RedBird, with an interest rate of around 7%.

The repayment deadline was set for August 2025 and there was a lot of speculation about whether Cardinale would be able to repay it and whether Elliott were pulling some strings as a result, given they still had exposure.

However, in December it was announced that the loan was refinanced, so now it must be repaid by 2028. Pushing the deadline back three years is certainly helpful for Cardinale, who could turn to investors to help.

Milan have released a note in today’s edition of the newspaper La Repubblica (via MilanPress) as a clarification regarding what was reported yesterday by the newspaper itself regarding the balance of power within the club between the old and new ownerships.