Gazidis set to profit millions form AC Milan ownership change

Rossoneri CEO Ivan Gazidis is another big winner from Elliott’s AC Milan club sale to RedBird Capital.

In the summer of 2018 Elliott Management took control of AC Milan club after former owner Yonghong Li failed to repay the €303 million loan debt owed to the American hedge fund. Latter, Elliott appointed Ivan Gazidis as the new CEO of the Rossoneri club after convincing the South African executive to abandon his position at Arsenal.

In a short period of four years AC Milan continuously improved their financial situation by increasing revenues and lowering costs. Elliott’s short term plan for the club proved successful with AC Milan getting crowed Serie A champions last year.

Successful results on the pitch were rewarding for Elliott who eventually sold the club to RedBird Capital for a figure of 1.3 billion dollars, plus half a billion in bonuses. Gerry Cardinale is the new owner of AC Milan club while Elliott secured a healthy profit in just a few years.

Another big winner of AC Milan’s ownership change is Ivan Gazidis. According to reports from Verita & Affari, AC Milan Chief Executive Officer will receive a €20 million payment when the closing is completed. That’s because of a special clause in the contract between Gazidis and Elliott. The Rossoneri CEO will receive 5% of the capital gain from AC Milan’s sale.

Elliott will retain a minority stake at the club but Gazidis is set to leave after RedBird Capital takes control of the club. The new American owners will appoint another CEO while president Paolo Scaroni will likely be reconfirmed in his positions. The two other important management figures of the club, Paolo Maldini and Frederic Massara, have already signed new contracts.

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