The sales contract has already been signed, and the official announcement is expected on Wednesday. It is not known exactly how much the transaction is worth, but the Italian media is calculating with 1.3 billion euros. Elliott bought the Milan club in 2018 for just € 90 million from Chinese Li Yongghong after his financial crash.
He stabilized Milan's financial situation and turned down several offers for sale, but after winning the title the club's value increased further and Elliott decided to charge for it. Although he received 15 times more money than the initial investment, Elliott retained a 30% minority stake in the club, but left the management of the club to RedBird Capital, a company known for years for investing in sports.
They invest in sports, but not as City Soccer Group
Italian media wrote during the talks that RedBird intends to increase the value of clubs and franchises around the world and network them in a similar way as City Soccer Group, a company from Abu Dhabi that owns ten soccer clubs on almost all continents, the most famous being Manchester City .
But RedBird Capital has a different, much wider range of interests and investments. Founded in 2014 by renowned investor Gerry Cardinale, the company invests in a number of sectors, from financial services, through media and telecommunications to technology and sports.
The value of her investments is estimated at six billion dollars. Therefore, the ownership share in Milan will be her biggest sports investment. So far, it has been a 10 percent stake in Fenway Sports Group, which owns European and English runner-up Liverpool, but also the MBL franchise of the Boston Red Sox franchise.
RedBird Capital through its soccer analytics platform RedBird FC since July 2020 has an 85% stake in French Toulouse, which recently won a return to the first division after four years in the second.
The new boss believes in analytics
Cardinale is a big supporter of sports analytics, which is easy to conclude because of the company with which he bought the ownership share of Toulouse, and the Italian media pulled out his old quote in which he spoke about the strategy from the movie Moneyball.
"With moneyball, results are guaranteed. We've done in-depth studies and there's no need to spend huge sums to win trophies," Cardinale said at the time, but that shouldn't mean a turnaround in club transfer policy.
As for major projects, RedBird Capital is committed to building a new stadium that would be just Milan and they are not interested in renovating San Siro. More will be known after the official announcement, which is expected as early as Wednesday, by which time the Cardinals will arrive from Paris to Milan. It is only certain that he did not decide on such an investment superficially.