Gerry Cardinale has started the process of selling part or the entirety of his stake in AC Milan, a report claims, but the high asking price poses a serious problem.
It has been an incredibly disappointing season for Milan, expected to miss out on the Champions League for the first time in five years. The financial effects will be significant, as we have also discussed in a bonus on Substack, and it could be the time for Cardinale to exit the business.
According to Il Sole 24 Ore’s financial sports reporter Carlo Festa, noise out of London suggests that Cardinale is at least thinking about a sale, either a minority or a majority one. The problem, however, is that he doesn’t want to lose money on his investment.
“From London’s financial circles, a certain activity of the Elliott/Cardinale duo is leaking out to find an equity partner/buyer for Milan. The Saudi lead is weak, the real problem is finding a buyer at the price wanted by Cardinale, who is expected to reappear on the public scene.
“Wall Street managers do not think like fans, but aim to make money or break even. Cardinale, who has disappeared from the public scene, has understood that he will not make a great return, but does not want to lose money and must reimburse Elliott,” he tweeted.
Had Cardinale opted to sell ahead of the current campaign, then he would have been in a much better position in terms of negotiating a high price. Now, however, that is not the case despite the refinancing of the Elliott vendor loan.
