A financial news specialist notes the difference between the approaches Milan fans can expect between Elliott Management and potential new owners Investcorp, who are tied in with Manchester City owners.
The negotiations are effectively confirmed by both parties, with an exclusivity deal for two weeks and expected closing in May, the takeover of the Serie A club costing circa €1bn.
Marco Bellinazzo is a writer for Il Sole 24 Ore, the Italian equivalent of the Financial Times, and he outlined what supporters can expect when moving from one investment fund to another.
“Elliott has in its DNA the idea of buying a company, creating value, putting it back on the market and selling on at a profit.
“The sovereign wealth funds, or at least those connected to sovereign wealth funds like Investcorp, also want a return on their money, but their objectives are not purely financial. In football, that means victories.”
While Investcorp are based in Bahrain, the real fund behind them is believed to be Mubadala, Abu Dhabi’s sovereign wealth fund.
“We shouldn’t be surprised by their interest in Milan. For years now these sovereign wealth funds have been operating important investments in the world of sport in general, particularly in football, for example PSG and Manchester City.
“At the end of 2021 there was an agreement between the sovereign funds of the Emirates and Bahrain, so they basically forged an alliance to invest in sport.
“However, Mubadala did not propose a direct investment in Milan because the CEO of Mubadala is the President of Manchester City.”
While the Premier League has already been plundered by foreign investors, the market for making a profit is now seen as Serie A.
“There is a very fertile market in Italy at the moment, as shown by how many clubs are now owned by foreigners,” added Bellinazzo.
“Elliott don’t actually need to sell Milan, but can make an important profit. They could wait for the stadium to be built or even make more if they win the Scudetto, but it looks like Investcorp want to get the deal done pretty quickly.
“Atalanta were valued at €700m thanks also to the ownership of their stadium, which Milan do not currently have, but the AC Milan brand has a global importance that gives them that value.”