Takeover of AC Milan by RedBird, doubts, legal action and the TFC presented as a guarantee?
This Friday, The Team published in its daily newspaper information which reassures only slightly on the subject of the sale of AC Milan by the investment fund Elliott to RedBird, which owns the TFC. According to the sports media, legal action has been triggered, with Elliott being suspected of wanting to keep control of the Italian club even after the sale, like at LOSC. To see more clearly, here is what to remember from this article:
> AC Milan will be sold to RedBird Capital Partners on September 6 for 1.228 billion euros
> Salvatore Cerchion, a minority shareholder of AC Milan (4.27% of the capital) and member of the club’s board of directors, who resigned on Saturday, is suing this sale. According to him, the deal was “opaque”. The man wonders about “the real reasons” and believes that this sale must be done unanimously by the partners, which was not the case.
> The American investment fund Elliott, owner of AC Milan since 2018, would have set up a complex structure for this sale in order to keep control of the club secretly, as in Lille (which allows LOSC and Milan to contest the same European Cup, UEFA prohibiting two clubs belonging to the same owner from participating in the competition).
> According to The Team, several elements raise doubts. RedBird would not have enough cash and would obtain money loans… from Elliott (between 200 and 550 million euros at 7-8%).
> The valuation of the TFC would have been presented by RedBird as a guarantee.
> After the sale, Elliott would retain 4 or 5 seats on the AC Milan board, out of a total of 9 people.