Reporter Han Bing reported that with the recent "official announcement" of the Bahraini Embassy in the UK on the official Twitter account, rumors that the Bahrain-based Investcorp fund plans to acquire Milan have been confirmed. The Rossoneri once again changed hands into the countdown. The Investcorp Group offers 1.1 billion euros, which, if closed, would be the highest acquisition ever made by an Italian football club. In terms of total value, it is second only to the Greszer family's acquisition of Manchester United (812 million pounds, about 1.15 billion euros). This is a real life-saving straw for Milan, which has been unable to qualify for the Champions League in recent years and has been hit by the new crown epidemic.
Italian media generally believe that negotiations on the acquisition deal are nearing completion. At first, the media revealed that the offer of the Investcorp fund was 1.1 billion US dollars, but now it is confirmed that it is 1.1 billion euros, which is an offer that cannot be rejected by the US Elliott Group, which currently controls Milan. Milano Sport revealed that the deal could be completed at the end of April. The Investcorp fund has two weeks to complete the deal, otherwise the Elliott Group will listen to offers from other consortiums.
Compared to the purchase price, Milan fans are concerned about the mysterious background of this Middle Eastern investment fund. Investcorp is not a "national sovereign fund" backed by qatar and the emirate of Abu Dhabi, such as Greater Paris and Manchester City, but a private equity fund founded in 1982 by The Turkish billionaire Kirdar in Iraq. Headquartered in Manama, bahrain, the fund is the largest private equity fund in the Middle East, with $42 billion in funding and branches in metropolises such as New York, London, Abu Dhabi, Riyadh, Doha, Singapore and even Beijing.
The company's current executive chairman is financier Aldi, who was once Oman's air force commander, and the fund is now more closely related to the Omani royal family than it is in Bahrain, where its headquarters are located. After all, Aledi was also the governor of the National Bank of Oman. However, the Emirate of Abu Dhabi sovereign fund behind Manchester City owns a 20% stake in the Investcorp fund. From this point of view, Milan will be the breakthrough point for the Abu Dhabi chief in Italian football, but Milan will not become a member of the "City Football Group" at the core of Manchester City.
The upcoming acquisition of investcorp funds means that Milan will receive continuous and stable investment like Greater Paris and Manchester City, and return to the list of Europe's top giants to at least get solid resource support. The Investcorp fund will provide Milan with up to €300 million this summer. In previous years, AC Milan's finances have been miserable, with a record loss of 195 million euros in the 2019/20 season and a loss of 96 million euros in the 2020/21 season. This season's return to the Champions League and the recovery of matchday revenue are expected to reach 300 million euros. The acquisition of the Investcorp fund will give Milan hopes of returning to the turn of the century to dominate the pinnacle of Europe. Of course, sporting director Marsala and technical director Maldini will remain, but CEO Gazidis is still unknown, and Investcorp is expected to parachute in the chairman and CEO to take charge of the club's affairs.
Investcorp funds entered Italy as early as the 1990s, buying a 50% stake in luxury brand Gucci. Investments in Italy have been very active in recent years, including the acquisition of an office building in Rome for €128 million, followed by the €74 million acquisition of Kering's Milan office. Investcorp's investment in real estate has made Milan fans look forward to the faster completion of the new stadium. Previously, Milan and Milan planned to build a new stadium together, but due to the delay in administrative approval, the new stadium is likely to be forced to leave the city of Milan and can only land on the outskirts of Milan. But now, Milan may choose to build a new stadium of their own sole proprietorship.
KPMG's business value assessment shows that Milan's business value has fallen by more than 20% due to the long-term impact of the Champions League and the COVID-19 pandemic. Atlanta is valued at €700 million because the club has its own stadium. Milan doesn't have it yet, but Milan's global brand presence is one of the reasons why The Investcorp fund is offering a high price of 1.1 billion euros. Italian football has become a new market for foreign capital influx, with U.S. holdings in AC Milan, Rome, Florence, Genoa, Parma, Spezia and Venice, with a 55% stake in Atlanta, and China's Suning Group acquiring Inter. The acquisition of Investcorp will add elements of Arab capital to Italian football.