Red Bird Capital, the American investment firm with a minority stake in Liverpool, has agreed a deal in principle to become the new majority owner of AC Milan in a deal expected to be the second most expensive purchase of a football club in history.
Incumbent owners Elliott Advisor, who bought the club four years ago, have been interested in selling up for several months and had previously seen a period of exclusive negotiations with another bidder, Investcorp, lapse.
That allowed Red Bird to jump in and they are now expected to complete a €1.2bn (£1.02bn) takeover of the Serie A champions by September having “entered into a definitive agreement,” according to a club statement.
Earlier this week Chelsea confirmed they had been taken over by a group led by American Todd Boehly that was valued at £2.5bn. Milan's takeover, should it be finalised, would be the next highest for a football club.
Red Bird is run by former Goldman Sachs executive Gerry Cardinale and they last year purchased a 10% stake in Fenway Sports Group, Liverpool's owners, worth a reported $750m.
Cardinale's firm bought Ligue 1 club Toulouse in the summer of 2020 and own 15% of the Indian Premier League's Rajasthan Royals. They claim to have more than $5bn worth of assets under their management.
“We are honoured to be a part of AC Milan’s illustrious history and are excited to play a role in the club’s next chapter as it returns to its rightful place at the very top of Italian, European and world football,” Cardinale said.
“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 – we are looking forward to a long term partnership with the club, its management team and Milanisti around the world to keep propelling Milan in the years to come.”
Elliott will retain a minority financial interest in Milan, the statement said, and they will keep a seat on the board of directors. They took over from Chinese businessman Li Yonghong, who defaulted on significant debts, four years ago.
Gordon Singer, Eliott’s managing partner, said: “When Elliott acquired AC Milan in 2018, we inherited a club with a tremendous history but with serious financial problems and a mediocre sporting performance.
“Our plan was simple: to create financial stability, and to return AC Milan to where it belongs in European football. Today, I believe we have accomplished both. As we make this remarkable transition to AC Milan’s next chapter, I want to express our deepest sense of humility, pride and above all gratitude for the experiences we have shared with each member of the AC Milan family: we could not have done any of this without you, Il Popolo Milanista.”
