GdS: ‘Comvest in for Elliott’ – how a ‘new Milan’ could take shape within the coming days

In a matter of days, AC Milan will have a new look at a corporate level, with a rather big change expected to take place.

As La Gazzetta dello Sport (seen below) report this morning, the new look won’t concern the team or the transfer window. The change will be in the club’s structure: the headquarters will no longer fly a single flag, that of the United States of America. There will be two: the US and the Canadian.

The former represents RedBird Capital, a fund owned by Gerry Cardinale, now on the verge of refinancing its debt with Elliott Management. The investment management firm headed by Paul Singer will be replaced by Manulife Comvest, a private credit platform headquartered in Toronto.

Just days away

This change will take place in a matter of days, perhaps one week. Barring any impediments, Milan will have a new structure by the beginning of February. Even if any obstacles arise, they will be of little consequence, because the parties intend to resolve any bureaucracy quickly.

The new timeline emerged from yesterday’s board meeting: the restructuring was initially scheduled for the end of the quarter, therefore to be completed by March. The acceleration is the big news of the last few hours.

The ‘new Milan’ could therefore be in place before the end of the transfer window, or even before the next sporting fixture in Bologna next Tuesday. The club’s organisational structure could be altered, and it is expected that there will be confirmations and changes.

Roles revised

President Paolo Scaroni, CEO Giorgio Furlani and CFO Stefano Cocirio will remain. The Elliott-led board members will depart to make way for Comvest.

Yet, the overwhelming message is that continuity must be preserved. After all, Milan have enjoyed a successful run of results not only on the pitch, but also off it. They’re coming off three consecutive profits in the accounts.

Not only that, but there is the company-owned stadium project too. It’s under the current management that the club has learned to operate self-sufficiently: turnover and commercial revenues have grown in recent years.

Next steps

Cardinale had been considering for some time how to repay the €489m debt (plus interest) granted by Elliott and due in 2028. Comvest will step in, allowing them to extend the repayment period (to 2031) and simultaneously lower interest rates, a formula fairly common in financial transactions of this type.

In the summer of 2022, Cardinale purchased Milan, giving the club an estimated value of €1.2bn, of which €600m was paid to Elliott and €550m lent (with the corresponding interest rate) by the seller to the buyer (the vendor loan).

In December 2024, further investment by RedBird reduced the debt to €489m (plus interest). The new maturities refer to a longer time horizon: RedBird and Cardinale would thus remain in charge of the club with a long-term plan.

A notable detail is the sporting season: Allegri has set his goal of regaining the Champions League spot. A major European championship guarantees sporting ambitions but also rich revenue for the club.