Could RedBird end up selling Milan shares despite club's rise?
Recent reports claiming that RedBird Capital, the owners of AC Milan, were planning to sell a portion of their stake in the club have been denied by the investment firm. Despite ongoing rumors, RedBird remains committed to Milan’s long-term success, while also considering new investment opportunities. The Rossoneri are intent on enhancing their standing on the Italian and European scene. Especially as they strive for ongoing improvement in all aspects of their game.
On Friday, the Italian newspaper La Repubblica published an article suggesting that RedBird’s founder, Gerry Cardinale, was preparing to sell 22% of his stake in Milan. This sparked widespread speculation about the potential impact on the club’s future. According to the report, Cardinale’s decision was linked to RedBird’s desire to “rebalance its portfolio”. Thus, possibly selling shares worth up to $165 million of their initial $747 million investment.
However, the company’s spokesperson swiftly denied the claims. Speaking to Reuters, the representative clarified, “The reporting by La Repubblica about selling a stake in AC Milan is a complete fabrication. It is wholly untrue”. RedBird acquired the club from Elliott Management in a $1.32 billion buyout in 2022. They now appear focused on the team’s current objectives rather than divesting from it.
Although the initial denial was firm, RedBird did not completely dismiss the idea of future investments or share adjustments. Both La Gazzetta dello Sport and Calciomercato hinted that the owners could still bring in new investors. However, they stressed that any share exchange would not affect the club’s day-to-day management; nor interfere with Milan’s broader strategic vision.
Commitment to Milan’s growth and success
RedBird’s primary objective remains clear: returning AC Milan to the top tier of both Italian and European soccer. After years of rebuilding, the team is once again contending for Serie A titles and competing in the UEFA Champions League. For the current campaign, they have set a minimum target of qualifying for the 2025-26 edition of the Champions League, the report adds.
This focus on consistent top-tier performance aligns with the ambitions that Gerry Cardinale has previously expressed for the club. Cardinale has been open to the idea of exploring new partnerships if they are beneficial to Milan’s progress. However, the firm rejection of this particular rumor emphasizes that any such moves will be carefully considered. Also, they will not jeopardize the club’s competitive goals.
Stadium dilemma: Top priority
While Milan continue to perform on the field, RedBird has another significant challenge to address off the pitch. That’s the future of the San Siro stadium. The club faces a critical decision about whether to pursue a brand-new stadium. Eventually, they could opt for a major redevelopment of their historic home. Interestingly, this stadium conundrum has been a long-standing issue for the Italian giants. The aging San Siro struggles to meet modern soccer standards in terms of capacity, revenue generation, and fan experience.
For RedBird, finding a resolution to the stadium dilemma is the top off-field priority. While no final decision has been made, the club’s owners are keenly aware that a state-of-the-art venue could significantly enhance Milan’s commercial opportunities. Whether through a new stadium or a revamped San Siro, this move could help solidify the club’s financial future and support its sporting ambitions.
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