GdS: RedBird could refinance loan with Elliott Management as Milan thrive
When RedBird took control of AC Milan in 2022, a vendor loan worth €550m was signed with the previous owner Elliott Management and the deadline is next year. However, as per a report, the loan could be refinanced rather than repaid.
RedBird and Elliott Management reached an agreement worth a total of €1.2bn for the takeover of Milan, but €550m of that was made up by a vendor loan from Elliott. This facilitated the takeover and made the process much quicker, but obviously the loan will have to be repaid eventually.
As reported by Gazzetta dello Sport, the interest rate is set at 8% and the deadline for the loan is August 31, 2025. Currently, the loan stands at around €680m and it’s clear that RedBird will need to come up with a lot of money to repay it.
Selling a minority stake in the club is one option to raise funds, but it’s also possible that RedBird could refinance the loan with Elliott. The financials of the club are great and there is an ambitious project in place, so the American hedge fund could agree to this solution.
On our Substack, we discussed the current situation at great length and touched on what the future holds, with investment needed for Milan to stay at the top.
