RedBird Capital Partners, a U.S.-based investment firm, has reached a deal worth 1.2 billion euros ($1.3 billion) to purchase AC Milan, the Italian soccer champions. It is now aiming to compete with the elite of European soccer.
According to the agreement, Elliott, the U.S.-based private equity group, will keep a minority investment as well as seats on the board.
Milan has just won the Italian Serie A league title, their first in 11 years.
RedBird managing partner Gerry Cardinale stated that he and his team are “excited to play a part in the club’s next chapter as the club returns to its rightful position at the top of Italian, European, and global football.”
RedBird already invests in Fenway Sports Group which is the owner of Liverpool and Boston Red Sox. RedBird also owns a controlling interest in Toulouse, a French soccer club.
Cardinale said that RedBird’s track record of team ownership and investment philosophy has proven that football clubs can be both successful on the pitch as well as sustainable off it.
Italian soccer clubs are a favorite target for foreign investors. Their valuations are lower than those of England’s Premier League or other major European leagues.
Milan was a dominant force in European soccer, but they won the Champions League in 2007 under former Prime Minister Silvio Bernlusconi.
The club statement stated that the transition to new ownership will occur over the summer with an expected close in September.
Milan, seven-time European Cup winner, will look to improve their ranks in the coming season to defend their title in the Italian league and challenge for the Champions League.
After Li Yonghong, a Chinese businessman, failed to fulfill certain obligations relating to a financing package to purchase the Berlusconi team in 2017, Elliott assumed control of the club.
Elliott stated that RedBird’s continued involvement was a reflection of its faith in the organization and said that the club leadership would continue to be in place.
Ivan Gazidis, a former Arsenal executive, is the club’s chief executive officer. Paolo Maldini is the technical director. ($1 = 0.9325 euros)
