RedBird Capital Partners, the private equity firm that owns 11 per cent of Liverpool owners Fenway Sports Group, will remain committed to their long term partnership with FSG even if they conclude a takeover of AC Milan.
RedBird, who invested $750m into FSG for a stake in John Henry's empire in March of last year, have been heavily linked with a move to take control of the Italian giants in a deal that has been valued at around £840m (€1bn). The interest, first reported by Sky News on Thursday, is rooted in fact, the ECHO understands and the New York-based firm are looking to acquire the club after a period of exclusivity between Bahraini investment vehicle Investcorp and AC Milan owners Elliott Management lapsed.
An agreement between the two parties could not be reached during that period, and while Investcorp remain committed to a bid to buy the club, RedBird have now sought to show their hand and enter discussions around acquiring the Rossoneri, one of Italian football's most storied clubs.
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Gerry Cardinale, founder and managing partner of RedBird, has made no secret of his desire to acquire more football clubs and grow the firm's sporting portfolio, which presently includes ownership of French side Toulouse, the stake in FSG and stakes in the Indian Premier League cricket side Rajasthan Royals and a small shareholding in Spanish second tier side Malaga, a deal that could end up as a full takeover but one that has been held up in the courts over a legal wrangle with former ownership which has resulted in the club being ran by a court appointed administrator for the last two years. The Malaga issue is no closer to being sorted and RedBird aren't likely to engage further until the legal situation reaches a conclusion, sources have informed the ECHO.
Talks between RedBird and Elliott Management are said to be advanced, but there are no guarantees over timescales or even that a deal will get over the line, with other parties still keen.
But the ECHO understands that should any deal be successful it would not affect the long term plan for RedBird and FSG, nor will it breach any existing UEFA rules around ownership. RedBird own a stake in Liverpool's parent company, not the club itself, and they do not have a say in the management of the club or any representatives at board or administrative level within the club. That means that there would be no conflict of interest, as per UEFA's rules, should the two teams feature in the same competition, as they often do in the Champions League.
In March, Cardinale stressed his longer term plan for investment into FSG, telling the Boston Globe : "I would be very disappointed if I don’t significantly increase the amount of capital that we’ve invested in Fenway to date for more opportunities.
"I hope and I think we’re going to have that opportunity to do so. That’s what buying into that platform should be all about."
