Milan are seeing their transfer strategy affected by the lack of fresh funds, as the take-over from RedBird still involves a loan from previous owners Elliott Management.
When the news was announced that RedBird had agreed the takeover for €1.2bn last month, fans were exhilarated and dreaming of massive swoops on the transfer market to rival PSG, Manchester City and Real Madrid.
However, they have instead seen supposedly done deals with LOSC for both Sven Botman and Renato Sanches falter because there is no clearance to raise the offers.
La Gazzetta dello Sport tried to outline the situation, which is caused in part by the fact a takeover has been signed, but the closing won’t be until September.
This report states the figure Milan can spent on the transfer market this summer is circa €50m.
Another issue is that RedBird received a vendor’s loan from previous Milan owners Elliott Management in order to complete the takeover.
There are varying reports as to how large this loan actually is, and the interest rate being charged, but the Gazzetta claims patron Gerry Cardinale is currently back in New York trying to raise fresh funds from investors.
Cardinale also has to deal with the problem of directors Paolo Maldini and Ricky Massara, whose contracts will expire on June 30.
Maldini is said to want more guarantees of decision-making powers within the club compared to CEO Ivan Gazidis.
RedBird are also investors in Fenway Sports Group, who have controlled Premier League side Liverpool since October 2010.
Cardinale wants to follow a similar template at Milan, keeping investment on the transfer market to a relative minimum, paid for with sales and increased revenues.
With that in mind, the Rossoneri can bring in cash if Atalanta sell Matteo Pessina, as they have a 50 per cent cut of the fee.
If Lucas Paqueta were to leave Olympique Lyonnais, then 15 per cent of that fee would go to Milan.
Rivendite, riscatti, clausole, cessioni: tutte le fonti di extra-budget per il Milan https://t.co/8cHRXgqfl2
— La Gazzetta dello Sport (@Gazzetta_it) June 22, 2022
This is why sales to funds should be banned
its funny how inter fans always wanted sunning to sell the club. this is good example how new owner not guaranteed extra money for transfer.
football club too expensive to run. that why juventus propose super league, i still oppose super league but IMO football need reform from UEFA and FIFA. modern football club cant operate like current system. moderate revenue and high expenditure. nowaday except state own clubs like city or psg or english club, lack profit especially after covid.
Does anybody think Atalanta managers are stupid? Why would they sell Pessina and give 50% to Milan when they can keep him for another season and own his playing rights completely for just 3m?
This is a nightmare, but through some smart work and with some luck we could still put together a competitive squad. I’d go for Dybala since he’s free then sell some fringe players (Castillejo, Messias, Saelemaekers, Rebic or Gabbia can all go for the right price) to raise 10, 15m and then sign Botman, Sanches and a right winger (Lang maybe?)
Poor Milan fans.
There was so much optimism when we heard about new owners who apparently had great ambitions for the club. So, as Milan Fan says, it is depressing to learn that there will not be much money available to strengthen the squad. Personally, I think we could do without Botman, fine player though he is, because Kalulu proved to be astonishingly good last season and, with luck, Kjaer will return to his former excellence. What money there is available could then be spent on Sanches and then dealing with the real weaknesses: No. 10 and right-wing. Dybala is terrific – when fit, but he wants a colossal salary. I’d prefer De Kaeteller, and if sales of Castillejo and Saelmaker generate enough funds, sign Berardi.
LOL! No one knows what will happen. Keep in mind we already have winning team – we won the league this year. Maldini will definitely bring someone in, just have to wait and see. There is no reason to spend millions, especially after Milan showed that you can be really good by taking in young players and making them all starts (Leao, Theo, Tomori, Tonali, Kalulu) – all these players are worth a lot more now than Milan paid for them. All is good here.
so now we know that elliot accept offers from redbird was because there is possibility that redbird cannot pay their due and interest back, and elliot can defaulted it back like when they did that to li-yong hong.. now that’s how a ‘vulture funds’ worked..
Great News. LOL