Kojak
CAPO DEI CAPI
- Joined
- Jul 30, 2013
- Messages
- 11,710
- Reaction score
- 7,760
303 million will get you..the trademark for the logo? the title of milanello? serie a license? continuation of lease @ san siro? a three year contract with puma?
Actually on second thoughts, if Li defaults on the debt I think Elliott will take control of 100% of the club. Li bought the club for 740m with 303m provided by Elliott. More importantly, he was struggling to come up with the funds so if Elliott had refused the loan he would've lost the several hundred million non-refundable deposits given to Berlusconi.
Therefore, Elliott would've been smart enough to insert a clause giving them ownership of the club in the event of default. Just like they insisted on appointing Fassone and stipulating we can't sell off players to pay off the debt. If they won't get 100% control, then it makes it very difficult for them to find a new buyer as they would have to be willing to share ownership with Li which is unlikely.
Realistically though, if the club is re-sold for 500m, Elliott get their money back with the remaining 200m given back to Li (as Elliott's spokesman said in January). Therefore, Li would only lose a couple hundred million at most rather than his entire investment.
In reality though, this scenario will never happen. Li will either raise additional funds by refinancing the loan through a new long term lender banking on the future success of the club to pay off the interest/principal. He can also bring in another shareholder (like Thohir at Inter) or float the club on the stock market to raise funds. Fassone has mentioned this possibility a few times.