Sole 24 Ore: RedBird confirm commitment to Milan – why investment is being sought

AC Milan and Roma are both attracting interest from Arab funds, a report claims, but there are no negotiations over the sale of either club.

According to what is being reported by Il Sole 24 Ore, the rumours about possible sale of Milan are not confirmed. The work on the new stadium and the securing of third place in order to return to the Champions League immediately remain the priorities of the management and ownership.

The focus on balancing the accounts – also in compliance with the Settlement Agreement with UEFA, after the profit recorded in 2022-23 – will also remain.

However, Gerry Cardinale has been working for several months to find convenient solutions to repay the vendor loan from Elliott Management at the time of the takeover (€585m, with interest at around 7%, and a final sum to be repaid of around €670m).

There is no particular urgency given that the maturity date is set for 2025 and that RedBird Capital – through various funds operating between sport and entertainment – now manages assets worth around €8bn.

Despite this, Cardinale has been in the Gulf where he met with several Arab investors interested in participating in the various businesses set up by his funds, with discussions about possible investments in Milan also held.

Cardinale’s idea would be to sell small stakes in Milan, as American sports and media franchises have done in recent years, thus opening up the possibility of private equity funds acquiring between 5 and 10%.

What about the PIF rumours? The unknown in all these cases remains that of the vehicle with which any Arab partners might choose to invest given the UEFA rules on multi-ownership of clubs.

PIF’s current ownership and thus participation in European competitions through Newcastle United is something to consider, as is whether or not other Arab funds are substantially and managerially related to the Saudi government that controls PIF.