Who is RedBird Capital Partners?

RedBird is a U.S.-based private investment firm founded by Gerry Cardinale, a former Goldman Sachs partner. With a focus on sports, media, and entertainment, the firm manages over $8 billion in assets. RedBird is known for long-term, operationally focused investments — not just financial engineering.

Relevant sports portfolio before AC Milan:

• Toulouse FC (France): Acquired in 2020.
  

• Stake in Fenway Sports Group (FSG): Owners of Liverpool FC and the Boston Red Sox.
  

• YES Network: Helped buy back the Yankees’ regional sports network alongside the 

From Crisis to Opportunity: How AC Milan Went from a Hedge Fund to Private Equity

Before RedBird Capital acquired AC Milan in 2022, the club was in the hands of another U.S. financial giant — Elliott Management.

Elliott is a New York-based hedge fund known for activist investing, turnaround strategies, and distressed debt. In 2018, Elliott unexpectedly became the owner of AC Milan, not by bidding for the club directly, but through a loan default.

Here’s what happened:

In 2017, Chinese businessman Li Yonghong purchased AC Milan from Silvio Berlusconi in a highly leveraged deal, backed by a €300 million loan from Elliott. Just a year later, Li defaulted. When he couldn’t repay the debt, Elliott took control of the club.

At that point, Milan was a historic brand in steep decline — no Champions League football, mounting debt, poor transfer decisions, and no clear vision. Elliott, despite being a hedge fund with no core interest in football, stepped in to stabilize the asset.

Over the next four years, Elliott:

• Cleaned up the club’s finances
  

• Reduced the wage bill and focused on younger talent
  

• Built a more sustainable transfer policy
  

• Backed key football appointments, including technical director Paolo Maldini
  

• Returned Milan to Champions League qualification in 2021
  

• Won the Serie A title in 2022

By summer 2022, Milan was winning again — both on the field and financially. But Elliott wasn’t in it for the long term. Their goal was clear: turn the club around and exit with a profit.

That’s when RedBird Capital entered.

Why RedBird Chose AC Milan

RedBird wasn’t looking to simply own a football club. They were searching for a global platform — a sports asset with historical weight, global reach, and clear room to grow. Milan fit the profile.

1. Global Brand, Under-Monetized

AC Milan’s history and name recognition were undeniable. But compared to clubs like Real Madrid, Manchester United, or Bayern Munich, Milan wasn’t monetizing its brand at the same level. RedBird saw an opportunity to bring in modern business practices — digital media, international partnerships, content production, and data analytics — and turn Milan into a commercially optimized brand.

2. Momentum on the Pitch

When you invest in sports, timing matters. Milan had already stabilized competitively, just won Serie A, and was returning to the Champions League. RedBird didn’t need to fix the roster — they needed to build on a winning foundation. That lowered risk and created immediate upside.

3. The Stadium Opportunity

At the time, Milan was still playing in the city-owned San Siro, which limited matchday revenue and fan experience control. RedBird saw a private stadium as a key value lever — one that would unlock new revenue streams through naming rights, hospitality, events, and brand activation. Ownership of infrastructure meant long-term control and scalable growth.

4. RedBird's Playbook

This wasn’t RedBird’s first time around sports. They already had a proven track record with:

• Toulouse FC (France) — promoted to Ligue 1 under RedBird ownership
  

• Fenway Sports Group — partners with the owners of Liverpool FC and the Boston Red Sox
  

• The YES Network — a major media business built alongside the New York Yankees

AC Milan was a chance to bring all that experience into one of the biggest football markets in the world. RedBird didn’t see just a club — they saw a media and commercial engine that hadn’t been fully built yet.

 The Financial Mechanics Behind RedBird’s €1.2 Billion Acquisition of AC Milan

In August 2022, RedBird Capital Partners finalized the acquisition of AC Milan from Elliott Management, valuing the club at €1.2 billion. The transaction was structured with a combination of equity, vendor financing, and strategic partnerships.

Equity Investment

RedBird contributed approximately €681 million in equity to the acquisition. Notably, around half of this equity was structured as mezzanine financing or preferred equity, provided by Ares Management, an American fund specializing in such financial instruments.

Vendor Financing from Elliott Management

Elliott Management, the outgoing owner, extended a vendor loan to RedBird to facilitate the acquisition. Initially anticipated to be around €600 million, RedBird secured additional investments, reducing the vendor loan to approximately €300 million.

Key terms of the vendor loan included:

• Interest Rate: Approximately 6–7% annually.
  

• Payment-in-Kind (PIK) Interest: An 8% PIK interest, payable upon maturity of the loan.
  

• Resale Clause: Elliott retained a clause entitling them to a bonus of less than 6% if RedBird were to resell AC Milan at a valuation exceeding €1.2 billion.

Strategic Partnerships and Minority Stakes

As part of the acquisition, Yankee Global Enterprises (YGE), the owner of the New York Yankees, acquired a minority equity stake in AC Milan. This strategic partnership aims to leverage synergies between the two storied sports franchises, particularly in areas such as media rights and global branding.

Financial Prudence and Club Stability

A critical aspect of the deal was Elliott Management's stipulation that the acquisition's debt obligations remain with RedBird's acquisition vehicle and not be transferred to AC Milan itself. This condition was set to ensure the club's financial stability, especially after Elliott's efforts to restore fiscal health during their ownership tenure. 

Performance Since the RedBird Acquisition

On the Pitch

RedBird took control of AC Milan just after the club had won its first Serie A title in over a decade (2021–22 season). Since then, Milan has continued its competitive resurgence, reaching the UEFA Champions League semi-final in 2023 — their deepest run in the competition since 2007. The team has remained a consistent top-four contender in Serie A, showing stability and progress under new ownership.

Off the Pitch

Financially, the club is trending upward. Revenue has grown, driven by Champions League prize money, increased ticket sales, and stronger global merchandise demand. Commercial partnerships and brand value have also improved.

A major piece of the long-term growth strategy — a new stadium — is still in the works. The proposed San Donato site is currently under negotiation and moving through development stages. A modern, club-owned stadium would be a game-changer for Milan’s revenue and brand control.

Why This Matters

RedBird is applying a distinctly American private equity lens to club ownership. Their approach reflects a broader shift in how elite football clubs are being evaluated and run.

Rather than focusing solely on trophies, RedBird’s playbook emphasizes:

• Media rights optimization
  

• Data and analytics integration
  

• Infrastructure investment
  

• Global commercial scaling

In short, they see AC Milan not just as a football club, but as a sports-tech and media platform — one capable of driving content, community, and commerce across multiple markets. This stands in sharp contrast to traditional billionaire owners, who often treat clubs as passion projects, sometimes lacking a clear financial strategy.

Conclusion

RedBird Capital's acquisition of AC Milan represents a significant shift in the way top-tier football clubs are valued and managed. By focusing on long-term growth through media, data, and infrastructure, they are transforming Milan from a traditional football club into a global sports-tech and entertainment platform. This model is a departure from the usual "win at all costs" mentality seen in many high-profile club takeovers, offering a more sustainable and scalable approach to success.

With both on-pitch performance and off-pitch financials improving, RedBird’s strategy is already showing promise. The club’s progress, coupled with the planned developments in their stadium and global brand expansion, positions AC Milan for continued success in a rapidly changing sports landscape.