Elliott: “Ownership and control of the holding company that owns Milan has been transferred to Elliott, our vision is to create financial stability and establish sound management”

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Elliot Management Corporation Founder and President, Paul Singer, speaking onstage during The New York Times DealBook Conference at One World Trade Center on December 11, 2014 in New York City. (Photo by Thos Robinson/Getty Images for New York Times)
Elliot Management Corporation Founder and President, Paul Singer, speaking onstage during The New York Times DealBook Conference at One World Trade Center on December 11, 2014 in New York City. (Photo by Thos Robinson/Getty Images for New York Times)

Elliott Management Corporation has released an official statement regarding Milan, announcing that they are the new owners of the Rossoneri and they are going to ‘inject €50 million of equity capital to stabilize the club’s finance’.

The era of Yonghong Li is officially over. The Chinese businessman completed the purchase of Milan from the hands of Silvio Berlusconi last April, but a lot of the money used for the acquisition arrived via a loan from the American hedge fund Elliott Management Corporation.

Li, however, seems to have run out of money. Last month, Elliott paid €32m to Milan in place of the now-former owner, and Yonghong failed to reimburse them, and is thus forced to give up on the club.

Over the last few days, Elliott has begun the process of taking over the club and this evening (Tuesday), they released an official statement to make their intentions known:

“Ownership and control of the holding company that owns AC Milan has today been transferred to funds advised by Elliott Advisors (UK) Limited (‘Elliott’). This transfer has occurred as a result of steps taken to enforce Elliott’s security interests after the previous owner of AC Milan defaulted on its debt obligations to Elliott.

Yonghong Li at Milanello on March 5, 2018. (@acmilan.com)
Yonghong Li at Milanello on March 5, 2018. (@acmilan.com)

“Having assumed control, Elliott’s vision for AC Milan is straightforward: to create financial stability and establish sound management; to achieve long-term success for AC Milan by focusing on the fundamentals and ensuring that the club is well-capitalized; and to run a sustainable operating model that respects UEFA Financial Fair Play regulations.

“Elliott fully appreciates the challenge and responsibility that ownership of this great institution entails. Elliott is pleased not only to support the club during this difficult time, but also by the challenge of achieving ambitious objectives in the future via the on-field success of coach Gattuso and his players.

“As first measures, Elliott intends to inject €50 million of equity capital to stabilize the club’s finances and plans to inject further capital over time to continue to fund AC Milan’s transformation.

Paul Singer , Annie Dickerson and Mitt Romney during a forum of the Foreign Policy Initiative at the W Hotel September 21, 2009 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)
Paul Singer , Annie Dickerson and Mitt Romney during a forum of the Foreign Policy Initiative at the W Hotel September 21, 2009 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)

“Paul Singer, Founder, Co-CEO and Co-CIO of Elliott Management Corporation said, ‘Financial support, stability, and proper oversight are necessary prerequisites for on-field success and a world-class fan experience. Elliott looks forward to the challenge of realizing the club’s potential and returning the club to the pantheon of top European football clubs where it rightly belongs. Elliott also strongly believes in the value-creation opportunity at AC Milan.'”

Elliott manages two multi-strategy funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, and employees of the firm. Elliott Advisors (UK) Limited is an affiliate of Elliott Management Corporation.

Marco Fassone and Massimiliano Mirabelli before Arsenal-Milan at the Emirates Stadium on March 15, 2018. (@acmilan.com)
Marco Fassone and Massimiliano Mirabelli before Arsenal-Milan at the Emirates Stadium on March 15, 2018. (@acmilan.com)

It is clear then, that Elliott intends to run Milan for a while before finding a suitable new buyer for the club. Gattuso was mentioned by name in the statement so there are no reasons to question his place in the new Milan of Elliott, but things are less clear about Marco Fassone and Max Mirabelli.

According to Sky Italia, Fassone will fly to London tomorrow to speak with the Elliott representatives. Sky expects the CEO to keep his job but mentions Umberto Gandini (formerly at Milan and now at Roma) and Giovanni Carnevali (of Sassuolo) as possible alternatives to the CEO.

These are certainly interesting times for Milan, who once again changes. All the Chinese members of the board of directions will be removed and soon replaced by people of Elliott Management.

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Mads Andersen
Mads Andersen
3 years ago

Good. No more Li and it sounds like Elliott is serious about Milan. I read somewhere that they plan to remain in charge for 12-18 months.

Jibola
Jibola
3 years ago

Relief! Relief! Relief!

Hopefully you drive us towards success till u hand us over to another billionaire with identity like u.

Scogamontana
3 years ago

Finally Li is stupid how ever its over for him now Milan should concentrate on Mercator and pre season maybe Elliott can help Milan so UEFA can turn their Verdict on Milan forza milan

Naz
Naz
3 years ago

Maybe the new owners will keep Milan? They have plenty of money to do so
One visit to the San Siro and they’ll be hooked

soheil balini
soheil balini
3 years ago

What Li did in past year is not logical by any means beside money laundering reasons. On the other hand I don’t see why Fassone is under fire. He did his job in past year. He was clear and close to fans (unlike what we experienced with Galliani). On the other hand New management could simply change him & it’s normal. No hard feeling for him (at least from me) because he always tried his best with limited resources. Anyway I heard that Li wants to sue! Another reason to hate him? Maybe. I don’t know! It’s a really strange… Read more »

Rikimaru Tenchu
Rikimaru Tenchu
3 years ago
Reply to  soheil balini

Totally Agree. Fassone did very well considering the circumstances and if we judged them solely by the past two seasons, I don’t think you can fault him in anyway.

Mirabelli perhaps has a tough heart but it maybe not so much experience.

I’m sure our scouting fund was also pretty low and all those former players on the souring payroll would have left with Silvio.

It was a difficult time. Doubt anyone could have done it better.

I wish Maldini all the best, but I’m sure he would find it a very tough Job.

Rino is a real blessing.

Milanista
Milanista
3 years ago
Reply to  soheil balini

Gatuso is the best coach for AC Milan.
He’s has ac milan at heart.

Baresis Dream
Baresis Dream
3 years ago
Reply to  soheil balini

Agreed about Fassone, althoughnthe recent UEFA report sheds some bad light on him as well.

Mr Li’s action caught the entire financial world by suprise, not only us. No one knows what went on there except maybe himself.

soheil balini
soheil balini
3 years ago

I also want to say something loud an clear!: F*#k You Berlu for puting us in this situation! F*#k you for ruining 10 years of history for such a club!

MagicoMilan
MagicoMilan
3 years ago
Reply to  soheil balini

What about the other 20 years?
No matter what others may say..berlusconi gaves us everything..the best AC Milan was under his ownership..

Rikimaru Tenchu
Rikimaru Tenchu
3 years ago
Reply to  MagicoMilan

Simple and undeniable Fact. The MILAN most of us fell in love with is Berlu’s Milan! Can’t take only good things and reject the bad. You either take a person whole or have nothing to do with them.

Dan Ban
Dan Ban
3 years ago

die a hero or live to see yourself become the villan. Berlu stayed too long

reza
reza
3 years ago
Reply to  soheil balini

Berlusconi destroyed the foundations of this team. And those who say he made Milan successful in the first place better look at Real Madrid. They wouldn’t be where they are if they had this mentality.

Milanellofm
Milanellofm
3 years ago

I have very little knowledge on Elliott so my simple question is l….. Is this good or bad? All I know is how stupid is li to not accept commissoand make a profit and now he has lost all his assets and gone broke?

kwabena Adu
3 years ago

Silvio should’ve handed the club to someone who was more reliable,Mr Li took a gamble and lost terrible all his hopes were pinned on the CL.

Carlo Gambino
Carlo Gambino
3 years ago

We are all getting this whole saga wrong. Li never bought Milan from Berlusconi coz all along it was Elliot that funded the purchase of Milan from the very first day coz I don’t think there’s anybody alive that stupid that will buy and invest over a billion in a club and just lose it all just like that # Charades.
#Gimmick #Russian Roulette

Patrick
Patrick
3 years ago

One thing still baffles me. Why did LI not sell this club to Commisso or Rickey ????

Ganesh
Ganesh
3 years ago

Elliot is a vulture fund. These guys are only interested in 1 thing….MONEY. There is absolutely no consideration for Milan’s history, legacy and what it stands for. They successfully choked funding for Li when he was trying to arrange funds from other investors in such a way that they orchestrated this whole process to take over the club (before October itself). These guys play at a different level to win. Unless the Rickkets or the Commissos buy the club, Milan will be used as a stalking horse

Forza Milan
Forza Milan
3 years ago
Reply to  Ganesh

Where are you from Ganesh? I am from Bangalore.

Ganesh
Ganesh
3 years ago
Reply to  Forza Milan

Me too, Vijayanagar

Forza Milan
Forza Milan
3 years ago
Reply to  Ganesh

oh nice…Glad to know a Milan fan lives so close by (Y)

Baresis Dream
Baresis Dream
3 years ago
Reply to  Ganesh

Completely agreed Ganesh. I fear for our dear club. We are deep in the dragon’s lair now.

Forza Milan
Forza Milan
3 years ago

Elliott also strongly believes in the value-creation opportunity at AC Milan.
The word “Value creation” says it all. They are in it for money and then will sell it to someone else. But the good thing is this will not allow the value of company to go down. The company will be more organized and may be money will be spent on transfers. Elliot may even give us a chance with TAS now. Hope a rich Middle East or Russian buys this club from Elliot in the future.

Ted
Ted
3 years ago

On milannwes.it you’ll find an article about why Milan was excluded by UEFA. At first it seemed because of the review of financial period from 2014-2017 Now the sh*t floated and our concernes were not only a well written consipracy theory. Whole business plan from Fassone and the Chinese was hoax They presented to get 19 millions from commerical out of China market in first year, where in third version of business plan presented to UEFA it was decreased to 9 million For 2019-2020 no revenue from China market was presented in business plan and even today it is believed… Read more »

Milanmario1
Milanmario1
3 years ago
Reply to  Ted

Yes and I remember being told on here that the balance sheet of the club looks the best since 2011. All the way along I said it’s fassobelli’s strategy for which we got penalised. Someone who lies you in the face cannot run a club like Milan which is founded on principles and integrity. Never been surprised about the UEFA sanctions. To be fair, considering the severity of the actions I was expecting worse sanctions. The sooner everyone apart from Rino goes the better!!

Jibola
Jibola
3 years ago

Milan is like a badly used Ferrari now, Elliott is like a smart auto dealer who is ready to fix the Ferrari, recover its value and sell to make profit. Check Milan’s current position in UEFA rating and you will know how much Milan has lost value. With Elliott, we are still in transition but the difference is that Elliott will spend and ensure Milan is in a better position to be resold to a worthy Billionaire and most likely would be American. This development should have positive effect on the TAS judgement for 2 reasons. 1, There is clearity… Read more »

montenapoleone
montenapoleone
3 years ago

Elliott are interested in making money. The only way they can do that is for Milan to be successful. No point trashing their asset to eventually sell for a loss. They’ll stabilise things and then sell again when we’re hopefully in a better position. I just hope people realise now that no matter how desperate we are for success, there are a lot of sharks out there claiming to have this amount of money etc like Li. Everyone hailing the arrival of the chinese only saw all the €€€€€€€. I’d rather be owned by someone who has less money but… Read more »

Milanmario1
Milanmario1
3 years ago
Reply to  montenapoleone

Completely agree. This is why they could own the club 12-18 months from now. Imagine if they liquidate the debts, give Rino the 3 quality signings he wants then we might get a CL place for the following season, have a solid team in the works. No debts, solid and sustainable plan, CL, the value of the team and players will increase so they will be in the position to sell the club for a lot more than today’s value. Also by selling players individually they will never make the money they’ve invested in the club so far so I… Read more »

Successor
Successor
3 years ago

I don’t think Li is losing.. He has done his job and get paid for it .. Berlusconi used him as he needs an unknown person to laundry his Asia money back to Italy , For what reason do you think all the investor that was involve backed out at the first phase of the sales to Li before he walk up to the Elliot… I believe Li will be in conversation with Berlusconi now drafting out their next move and how to address the issue to the fans… I can’t blame fassone for all the FFP , if you… Read more »

G-WIN
G-WIN
3 years ago

I am thinking this is all the plan from the beginning. Li hs supposedly lost a lot of money, neither him nor his representative hs said anything about this? This raises a lot of suspicion. The shrewdness of this deal is something to worry about. It’s so evident that Li is broke, why didn’t he sell to make profit from commoso or ricket only to wait nd lose your investment in its entirety to Elliott. I just believe all this is stage managed. There is buyer somewhere Milan is being prepared for, don’t be so suprised Belusconi knows about all… Read more »

Successor
Successor
3 years ago

For another week or two with the possible replacement of Mirabelli transfer will be on hold, while othe team are really strengthening up . The likes of Juve Roma Inter are ahead of us not to mession the likes of Napoli Lazio and Atlanla who are doing well in the transfer market too. Knowing we always find it difficult against these teams for the last past 2-3 seasons now… If Borini will be use to balance Biglia fee with Lazio, with the sales of Niang, Kalinic, Bertolacci, Gomaz, Antonelli, Montolivo but keep Locatelli. Milan can fund Mephis Depay even if… Read more »

Larryoil
3 years ago

To me,Li wasn’t the former owner of Milan,he was only used as a camouflage or he was used to get the club(Milan) at the price he purchased it a year back!!!from the onset,Elliott was d one dat funded him(Li)through loan and others and mind you if it was Li personal money dat was spent in the purchase of the club,he would have sold the club out and be getting is % now,when he refused commosi(d US billionaire)offer,I knew something is fishing!!! I believe gattuso drew so many attention on dis club with bringing players back to dere right playing career… Read more »

Ted
Ted
3 years ago

Milan business plan that was presented to UEFA revealed, a hoax never seen before:

2017-2018 – income from Chinese market would bring 19 millions to Milan coffers in first year. In 3rd version presented to UEFA, that income was decreased to 9 millions

2017/2018 – revealed that Milan has earned a total of 0€ from Chinese market and no partnership was signed with Chinese potential sponsors that were presented in business plan

Fassone is to blame, now I hope they both leave with Mirabelli. They’re fishy

John
John
3 years ago

what if Elliot decides to get there money back by selling players. They will definitely make a lot. Then sell assets. It still baffles me what happened this last yr

Joe
Joe
3 years ago

I think we will see a huge improvement since Elliott took over. Elliott is a serious organization and they know what to do, not like the Chinese guy. They will get the club financially healthy and then sell it to someone else – and I am pretty sure it will be someone with big money and someone who is respected. Milan was sold to Li and no one really knew anything about the guy, whole operation was weird for which I blame Berlusconi.

Baresis Dream
Baresis Dream
3 years ago

I don’t want to be the one shouting now, but Elliot ownership spells trouble, I mean TROUBLE!

Sure, things can also take the high road, but we’ve never been so close to oblivion since I can remember.

If Elliot won’t be able to get thwir investment back, they’ll strip Milan to the bone, like you strip an unsellable car for it’s part. 1000 Maldinis won’t change this.

Joe
Joe
3 years ago
Reply to  Baresis Dream

LOL Elliot is a serious organization, maybe you should do a little research before you post so much crap. They want to protect their investment – is there anything wrong with that? I don’t think so. They won’t strip Milan because no one will buy them in that state – they will get Milan financials in order to make the club more appealing to the potential buyer and then sell. It takes money to make money and Elliot knows that. Plus they got Milan for a huge discount so it won’t take much to make it better and sell for… Read more »

Milanellofm
Milanellofm
3 years ago

People still happy Elliott are in charge? Reports saying that they will End the transfer campaign with a 55m gain meaning we are not buying anybody. Only selling. Please commisso save us

Milanellofm
Milanellofm
3 years ago

To add. Elliott don’t give a crap about milan. They’re a nuisance to them. They will do anything to not lose money in this and that worries me

Barney
Barney
3 years ago

This might very well be the end of this club , as ive said before the competition in serie A only get’s stronger by the year , and milan get’s weaker every year . Alott of you here think that this elliot group will invest in milan but the truth is that they are a busness group . They are only interested in theire own pocket’s . They will most Likely sell alott of our starters in our squad And then sell the whole club to the highest bidder , and that all to make profit €€€. there is a… Read more »

HorneyBarney
HorneyBarney
3 years ago

Im glad we got rid of Li.
But dont like Elliot as owner.
Lots of good points here of being suspicious.
Comisso would be our savior long term.
Elliot only want $$, they dont care too much about Milan being competitive. They should prove that with transfer budget. Also, seems Maldini will reject them. Like Li, he doesnt trust them. Another thing to worry, since they dont want to give him key role in board. I will apologies here, if they turn out being great owners, with good transfer budget and buys.

JOe
JOe
3 years ago
Reply to  HorneyBarney

How do you know Elliot only wants money, you work for them? Stop the BS posting. Maldini wants a key role at the club and wants to be a decision maker – problem is, he needs to earn that and so far, he has no experience in that role. He needs to start from the bottom and learn and move up – just like everyone else. He thinks his name will land him a presidential role.

Mathijs Van Sloun
Mathijs Van Sloun
3 years ago

Scaroni is the new president. Don’t know him. Maldini declined. Of course, Milan has no success.

Maldini would only step in when Milan is successful again. Bit cowardly, but he his name on a stake.

I would say, Maldini, in good and bad times you should back your club. Not only thinking about your name.

Then, please ask Albertini. Think he is a good move.

50 for mercato? Sell Suso and Donnarumma and we get Immobile and MIlinkovic Savic. Nice Mercato then

Calm down
Calm down
3 years ago

According to reports, Maldini had originally been contacted for a position within the new board, multiple sources however suggest he turned them down because the role was largely a ceremonial one and he wanted to have some say in the way the club was run.

So it’s looking to me that Maldini really want to be able to help rather than anything ,my friend

Mathijs Van Sloun
Mathijs Van Sloun
3 years ago
Reply to  Calm down

According to my report, he turned them down because he only wants a successful Milan.

Accordingly, he said

“This is not a winning Milan”

Don’t blame the messenger

Barney
Barney
3 years ago

Look if milan will recive 50million to invest and sells a couple of player then it would be good for the club.
50M to begin with
20M for kalanic
15m for bacca
10M for niang
10M for bertolaci
And then 35M for silva , that’s a combine 140million to invest in transfers potentialy . For that money they can buy both depay and ciro imobile . And If they can keep the other player it would become a strong side . but im realy not confident about this elliot

Ted
Ted
3 years ago

Offtopic:

Locatelli closing in on 12 million move to Sassuolo with Milan inserting a buy back clause, according to Di Marzio

Milan10
Milan10
3 years ago

Looks like i was right all along. Damn i hate being right all the time. Where’s that ck pro-chinese joker who kept debating me over the possibility of elliott take over? See, always back up ur comments with facts and datas

bidonesia
bidonesia
3 years ago

“our vision is to create financial stability and establish sound management” mean they will sell anything they can sell… we are new udinese