The New York-based private equity firm RedBird Capital Partners has shown heavy interest in European football, having invested into English club Liverpool and second tier French team Toulouse. In recent months, they’ve shifted their attention to Italy with a big deal at AC Milan who just won Serie A this year -their biggest yet.
The AC Milan club was under the management of another New York investment fund, which took over after former owner Li Yonghong defaulted on €300 million worth high-interest debt.
In a span of two years, RedBird executives have been on the hunt for football teams across Europe. Their first project was Toulouse – a French club that recently won its second division to earn a promotion into top flight play.
The investors saw an opportunity when talks between Elliott Management and Bahraini investment fund Investcorp continued for months without producing a deal.
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In a deal worth €1.2 billion, RedBird founder and managing partner Gerry Cardinale swooped in with an offer to purchase the club from its previous owners for €600 million, providing funding that would go towards Elliott Management’s minority stake as well.
The Rossoneri won their first Scudetto after eleven years under the guidance and transfer decisions of manager Stefano Piolo. They did it with help from Paolo Maldini who served as technical director. As a result, RedBird is ready to help AC Milan maintain its momentum.
The director has met with Gerry Cardinale to discuss his extension at the club after concerns arose regarding his stay.
RedBird has plans to build a new stadium. The San Siro, though it may be old and outdated in comparison with modern times where big clubs are remodeling or moving so as to maximize revenue streams, will be getting an upgrade.
“A brand of this scale, like AC Milan, should have infrastructure that is indicative of its football prowess and global potential,” said Cardinale. “We’ve had a lot of experience with stadium projects in the U.S. Milan and Italy deserve a world-class stadium that houses the best of sports and entertainment on a global scale.”
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New York Investment Fund RedBird Takes Over Italian Football Giants AC Milan
