CM: RedBird’s investment in Milan so far and how mercato budget could reach €250m/yr

Gerry Cardinale once again pledged to reinvest revenues into transfers at AC Milan, but what impact will the stadium have?

As Calciomercato.com recall, Cardinale made an admission during an interview on The Varsity podcast that has echoed around, as he stated: “Owning AC Milan is probably the hardest thing I’ve ever done.” He bought the club in 2022 from Elliott Management, and has no intention of leaving any time soon.

The investment so far

Cardinale went on to state: “In three years of ownership of AC Milan, we’ve been cash flow positive for the first time in 17 years. And I’m not keeping that money for myself: I’m reinvesting it in the team.

“We spent more than any other Serie A team in the last summer transfer window. We’re building a new stadium. Not to pocket money, but to transform AC Milan’s financial profile and bring it to the level of Premier League teams.”

How much has Cardinale’s fund actually spent since taking over? RedBird invested €600m to purchase Milan in 2022 (valued at €1.16bn), while also deciding to finance the remaining €560m through a vendor loan, at an initial annual interest rate of 7%.

Thanks to the refinancing completed eight months ahead of the August 2025 deadline, RedBird has paid an additional €170m, bringing its investment in the club to €770m. To this figure must be added the €55m (€40m then €15m for more land) paid for the proposed stadium site in San Donato.

The total: €825m invested by RedBird on club equity and infrastructure. Also worth considering are the three transfer windows supported by the club: €131m two years ago immediately after the Scudetto, €121m last season, and €162m last summer. That is incomings though, not net spent.

Room for growth

Cardinale then spoke again about the investment with RedBird in Milan, including the objectives for the short and long-term future, like a new stadium and getting on the same level as Premier League clubs.

From an economic point of view, the aim is to stabilise between €50-100m in positive cash flow per year, to be reinvested in the squad by increasing the wage bill in a reasoned manner to make the squad more competitive and increase the sporting value of the team for each of the next five years.

Then the stadium should arrive, and with it, the club could make the leap from €100m to €250m in annual cash to invest in the transfer market. A step forward in this regard has been made, with the deed for the San Siro purchase expected to be finalised on Friday and the start of construction now looking imminent.