New details emerge on Cardinale’s talks with Arab funds
AC Milan owner Gerry Cardinale is in search of new investors and has meet with interested subjects from the Middle East.
It has been quite an eventful week for AC Milan. First the interview of Paolo Maldini where he didn’t hold back, criticizing heavily the ownership and new management of the club. Then, news emerged on Gerry Cardinale’s unexpected trip to Middle East in search for new investors. More details have just emerged on this regard.
Despite some shallow denials from club side, acmilaninfo.com can confirm that Gerry Cardinale met with representatives of Investcorp, Saudi fund PIF and also other subjects. The situation is chaotic regarding what can be the implications for the future of AC Milan club. Redbird and Cardinale find themselves cornered due to the €600 million vendor loan provided by Elliott Management when the club sale took place.
Cardinale should repay the entire figure plus interest of 7% within the summer of 2025 according to the initial agreement. The American businessman is under increasing pressure from Elliott to repay the figure in advance. Cardinale does not have that kind of money that’s why he’s on disparate hunt across America and Middle East for new funds.
For now, Cardinale has offered to sell only a minority stake of AC Milan club to interested Arabian funds. The AC Milan owner is ready to sell up to 49% of the club in order to repay the loan he owes to Elliott and also finance the construction of the new stadium brining the required investment to one billion. There are many parties interested in acquiring AC Milan but neither wants a minority stake.
Investcorp and Saudi’s PIF want full control of AC Milan or at least enter the club with a minority stake but with a clear plan to take total ownership in the future. At the moment Cardinale has remained firm in his position to keep the majority of the club. The American businessman aim to sell the club when the contraction of the new stadium is began thus maximizing his return since the cub will be worth much more then.
Time is not on Gerry Cardinale’s side. Until now he has failed to find the necessary 1 billion to repay Elliott and finance the construction of the new stadium. There is a real risk that an internal ‘painful’ solution may be chosen to get part of the money from important player sales. Hopefully that will not be the case.
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