A strategic move is underway in the football business arena as an investment fund with ties to the Saudi Arabian Public Investment Fund is reportedly devising a strategy to secure complete ownership of the renowned football club, AC Milan, from Gerry Cardinale and his firm, RedBird Capital Group.
Insights from La Repubblica suggest that the investment fund could assume the responsibility of settling a significant €550 million vendor loan and associated interest. This loan was initially provided by Elliott Management Group, the previous proprietors of AC Milan, to support RedBird’s acquisition of the club in August 2022. This financial obligation currently falls on the shoulders of Cardinale, serving as a critical instrument in the recent ownership transition.
Should the Arab investment fund choose to repay this sum to Elliott on Cardinale’s behalf, the pathway would be cleared for an outright sale of Cardinale’s stake in the club, potentially ushering in a new era of ownership for the Italian football giant.
It has been noted that Cardinale made a recent trip to the Middle East with the intent of procuring additional investment, aiming to release Elliott’s economic grip on the club. This development aligns with his objectives, although he has expressed a desire to resolve the vendor loan prior to its 2025 due date, specifically by the end of 2024.
The unfolding scenario hints at a possible significant change in AC Milan’s ownership structure, with the Saudi-related fund playing a pivotal role in shaping the club’s financial and operational future.