Explaining Milan’s €1.2 billion valuation

Bahraini investment fund Investcorp are preparing to pay around €1.2 billion for Milan, but why are the Rossoneri worth so much?

Investcorp have been in talks with current owners Elliott Management for a number of weeks now and they’re hoping to close out the deal at some point in the coming weeks, with the Bahraini investment fund ready to pay over €1 billion for the club.

As reported by Calciomercato.com, the financial structure of the deal will see Investcorp pay €800m of equity for the purchase of Milan, with another €400m coming from other financiers, including a group of banks consisting of Goldman Sachs and JPMorgan.

The €1.2 billion valuation is defined on the basis of the following three factors: €400m for Milan’s new stadium project, €400m for the squad and commercial value and €400 million for the general value of the club and their turnover.

Things could be fully finalised in the coming weeks, with the last concerns relating to various forms of debt the club hold.