Did you think the takeover of AC Milan was dead?
SO DID I!
In fact, it’s not dead, it’s worse than dead. It’s alive and it is taking a horrifying twist.
With SES sports failing to meet the deadline of the third deposit towards the full purchase of AC Milan from Fininvest - the group has been disbanded and a new consortium has risen up. Rossoneri Sport Investment Lux is the new group of Li Yonghong and will be the consortium in pole position to purchase AC Milan.
However, considering the fact that RSIL has one investor while SES had ‘many’, is it not worrying that a broker with seemingly no money could purchase AC Milan?
Rather like a Dad trying to help his deadbeat son finance a Lexus, RSIL have found outside help thanks to the ‘Elliott Fund’ - who will be supporting Li and RSIL purchase AC Milan. The following is the Reuters lede on this new twist:
U.S. private equity fund Elliott is helping a struggling Chinese consortium buy Italian storied soccer club AC Milan with a 253 million euro investment, lawyers representing AC Milan and the main Chinese investor in the consortium said on Monday.
In a statement, the lawyers said Elliott would provide 180 million euros to complete the acquisition, and another 73 million euros to help the club face short-term payments.
There’s no inkling if this is a loan to RSIL or not, but it’s rather worrying that the company that wants to buy Milan need help to buy Milan. Maybe if you haven’t got the money, don’t buy the club? Elliott have rescued Li’s deal to purchase Milan, but there’s a bit more to it than that
Want to hear the weirdest part of all of this? According to la Gazzetta dello Sport, Milan, the club itself, are borrowing money to help Li complete the sale, which is rather - odd.
It’s not just that though, this is a really scary position for Milan as the club are being used now as a Li’s gambling chip. If this all pays off, Milan are successful and Li’s deal works out for him. If it doesn’t and Milan fail to make repayments - it means that the club will get asset stripped by Elliott and according to Gabriele Marcotti of ESPN, that could make every single one of Milan’s players fair game to other clubs as Elliott look to recoup money.
It’s going to be very unstable ground for Milan if Li’s deal goes ahead as he is borrowing against the club and in football, nothing is certain. Milan will need to succeed and succeed fast if Li takes charge or they could face catastrophe. Silvio Berlusconi won’t look so bad if that happens.