Scaroni and Furlani confirmed in management. The two representatives of the Singer fund leave the board of directors. The refinanced amount is 550 million
The acceleration of recent days has produced white smoke: RedBird has completed the refinancing of the debt that linked it to the Elliott fund, which has been fully repaid. The transaction refinances the vendor loan (i.e., the loan granted by Elliott to RedBird at the time of the sale of the club), replacing it with a new €550 million loan structured by Comvest Credit Partners. A scenario that initially seemed likely to take shape by March, but then made a decisive leap forward during the week. By relying on Comvest, RedBird gains the advantage of extending the repayment period while lowering interest rates. After a previous review of the transaction, the remaining debt of Gerry Cardinale’s fund was reduced to a principal amount of $489 million in December 2020 (with the maturity extended to July 2028), to which, however, the interest accrued to date must be added, for a total amount exceeding half a billion. Elliott is exiting and Comvest, an investment company based in Toronto, Canada, is entering. The Rossoneri management will remain unchanged: Scaroni as president and Furlani as CEO. During the Rossoneri board meeting the other day, the imminent green light was explained to the directors. Gordon Singer and Dominic Mitchell, Elliott’s directors, are clearly set to leave the board.
“RedBird Capital Partners announces that it has successfully completed the refinancing transaction that strengthens AC Milan’s financial structure and consolidates its long-term flexibility,” reads the Rossoneri club’s statement. “The refinancing aligns the Club’s capital structure with RedBird’s long-term strategic and operational objectives as the sole controlling shareholder of AC Milan. Following the completion of the transaction, Elliott’s Managing Partner, Gordon Singer, and Associate Portfolio Manager, Dominic Mitchell, will leave AC Milan’s Board of Directors. No further changes have been made to the Board or management, ensuring continuity in the governance and operational management of the Club.“ Gerry Cardinale, owner and president (a position distinct from chairman, which remains Scaroni), said: ”Over the past three years, we have worked to steadily strengthen Milan’s financial and sporting performance, returning the Club to profitability and building a more solid and sustainable foundation for the future. Our commitment to Milan is driven by a long-term vision for the Club, its leadership role in the city of Milan, and its historical heritage as one of the most successful European clubs in the world. With the new stadium project at San Siro now underway, we look forward with even greater confidence to the Club’s trajectory and our ability to support its growth and success. We will continue to identify opportunities to create value over time, helping to strengthen the profile of Milan and the city of Milan around the world.“ Gordon Singer also spoke: ”We are proud of what Milan has achieved since Elliott acquired the Club in 2018. Under the leadership of Elliott and subsequently RedBird, the Club’s financial and sporting performance has improved significantly, and the team has won two major trophies, including the 2021-22 Scudetto. Managing a historic institution such as Milan is a great responsibility, and we wish RedBird continued success in the future.”
Diverse galaxy— Net of official statements, the cornerstones of satisfaction within the club relate in particular to respect for the club’s history, Milan’s centrality in the diverse RedBird galaxy, the enhancement of the new stadium, and continuity in governance. In fact, with regard to the latter, it is clear that the departure of Singer and Mitchell from the board of directors makes the board more streamlined and “light” in its decisions. At the same time, this refinancing is seen as confirmation of the global credibility of the project, i.e., the credibility of RedBird and its founder.
