Milan, RedBird pays 170 million and reduces debt
Eight months before maturity, Gerry Cardinale's fund repays part of the loan and extends the maturity of the remaining 498 million to 2028
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Key points
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RedBird has refinanced part of the vendor loan signed with Elliott to buy AC Milan. Eight months before the maturity date, therefore, Milan's ownership repays part of the loan and extends the maturity of the remaining 498 million euros to 2028.
Club location
."The refinancing with Elliott, in its position solely as lender, includes an additional investment of 170 million by Ac Milan's owner, RedBird Capital, which reduces the principal of the loan to 489 million, with maturity now set for July 2028."
"Over the past few years, AC Milan's financial positioning has steadily grown and strengthened under the leadership of RedBird," explained president Paolo Scaroni, "an owner with a long-term commitment. Significant work has been done to ensure the stability of our iconic club, position it for sustainable operational success and nurture the Rossoneri's legacy, tradition and values."
The purchase of Milan
.When RedBird, the fund managed by Gerry Cardinale, through the Dutch vehicle Acm Bidco, acquired 99.93% of the Rossoneri in 2022, it was able to rely on a 'vendor loan' granted by the seller Elliott in exchange for a pledge on Milan's shares in the amount, compared to the club's valuation of 1.2 billion, of 550 million. The fund's subscribers invested 650 million of their own money. They will have to pay back by 31 August 2025 a total of around 680 million, counting interest at a rate of 8%. With the manoeuvre that has just been put in place, therefore, the subscribers of the fund led by Cardinale invest another EUR 170 million and gain time for the repayment of what is still owed.
