RedBird Capital Partners have confirmed the acquisition of Milan and Lorenzo Bettoni explains what Rossoneri fans should expect from the new owners.
Gerry Cardinale and Elliott had reached an agreement over the club’s takeover at the beginning of the summer, but the closing didn’t happen until the last few hours. Therefore, RedBird’s statement confirming the club’s acquisition didn’t came as a surprise but today a new chapter for the Rossoneri starts.
The club have welcomed their third owner in the last five years following the reigns of Li Yonghong and Elliott who are believed to have lent circa €600m to RedBird to complete the deal.
This is why Cardinale spent most of the summer talking to potential co-investors in the USA. In the end, Cardinale involved Yankee Global Enterprises, owner of the New York Yankees, who acquired a minority stake in the club.
They are long-time partners and their first target is to develop Milan’s brand and ‘expand commercial opportunities,’ as Cardinale said.
This is something that Ivan Gazidis has already produced over the last few years, managing to bring more commercial partnerships from abroad.
“When I arrived, two-thirds of the trading partners were Italian, today two-thirds are international. The value of business partnerships has multiplied. All revenues are invested in the club. It is a virtuous circle,” said the ex-Arsenal chief in his latest interview with La Repubblica this week.
The big question for Milan fans is: will the club be able to compete with the top European sides and complete big-money signings in the future? The answer, at least for the moment, is no.
Milan are solving their financial issues, but still ended the last financial year (2021), announcing a loss exceeding €100m (€101,6m). This is not the only reason why the Rossoneri will continue keeping a relatively low profile in the upcoming transfer windows.
“RedBird has great skills in the sports business and a high international reputation. The message they have conveyed to us is the will to continue on the path of our virtuous management,” said Gazidis earlier this week, confirming that RedBird are not planning to spend crazy money on new acquisitions.
It would be like start building a house from the roof. RedBird’s first target is to strengthen Milan financially and give the club an even better structure. The first step to do so is to build a new stadium, something which the Rossoneri and their city rivals Inter have been trying to do for a long time.
It is still unclear whether their new home will be built in the area of San Siro or in Sesto San Giovanni, just a few kilometres outside from Milano.
Back in December, a new plan for the ‘Cathedral’ a new stadium built in the San Siro area had been approved by the two clubs, but works won’t begin before 2027 and the major of Milan must also approve the project following a public debate.
Therefore, Inter and Milan directors have been suggesting that they may pick a different spot for their new stadium, dropping San Siro. Surely, the Milanese sides will share the project, building a new home for two teams because one stadium for each would be financially unsustainable, as confirmed by Gazidis.
“We will look to leverage our global sports and media network, our analytics expertise, our track record in sports stadium developments and hospitality to deliver one goal – maintaining Milan’s place at the summit of European and world football,” said Cardinale today. A new era has now begun.
Good news. Delighted to hear the plan is to keep transfers much as they are. No point throwing stupid money around like the English clubs.
Agree that the stadium should be No 1 priority. Why it has to wait until 2027 though . . . . . .
Why is a new stadium financially untenable for a club like Milan or Inter? Why must they share?
Starting from scratch and not throwing money around like the English is really way to go, but a club like Milan shouldn’t be having 50M as transfer budget, it doesn’t make any sense. You need to spend money to create a successful brand. I dont understand what brand you are trying to build when you cant even afford a 8-10M players. And Milan need a stadium for Milan and not sharing.
A new 62.000 stadium only for Milan ASAP if they mean business and the rotten politicians let them build. Italy live in the Stone Age time.