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American hedge fund takes over football club AC Milan

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• Elliott Management Corp. of the successful hedge fund manager Paul Singer, takes control of the Italian top club AC Milan. After the previous owner had a financial mismanagement in 1 year, the hedge fund is helping the Italian top club. Rival Juventus Turin sees its share price explode by the arrival of Cristiano Ronaldo.

• A year ago the Chinese businessman Yonghong Li took over Milan from Silvio Berlusconi with a big drum. It became the end of an era after 3 decades in the hands of the media mogul and countless successes. But it also became almost the end of the club.

• Yonghong Li lent $ 300 million to Elliott Management for the acquisition and spent no less than 200 million euros last summer to attract new players. However, that was not a success. AC Milan ended the competition only as 6th and now even gets a ban from UEFA to play European football for violating the Financial Fair Play rules.

• After Yonghong Li failed to repay a 32 million euro disc to Elliot Management, the hedge fund decided to take control of the club. It invests an additional 50 million euros to stabilize the club.

"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. "

 

Cristiano Ronaldo to Juventus Turin

 

• That other successful Italian top club, Juventus Turin, currently has the wind in the sails. It announced the arrival of superstar Cristiano Ronaldo, who will earn about 550,000 euros per week.

• Juventus pays no less than 100 million euros for the Portuguese. Including salary and taxes, Ronaldo will cost the Italian record champion some 340 million euros over the next 4 years.

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• Investors are in any case not awake of this expenditure. The stock market price of Juventus shoots 30% higher, adding more than 200 million euros in market value.

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Sources: The Guardian - Goal - MarketWatch