The Rumour Commode XXXIX: A Cardinal Sin

[brk]

You always say the money is there for transfers from gordon/gerry is just they choose not to have their pants pulled down by the market.

Maybe it was like that with the sale.

Most clubs are running at a huge loss yet are still spending on transfers. We are almost running at a profit and choose not to spend on transfers. The money is there if we want to spend. We’re going to be under FFP limits even if we spend a lot, especially starting next season. Why aren’t we spending? I don’t know, but it’s not because we don’t have the money. This is a fact.

Our rolling 3year FFP window for the next season is going to be around 70m loss or so. Under the 90m limit. If we start getting a profit from sales we can spend without worrying about FFP anymore. In 2024/25 the 70m loss from 2021 will be off the window so we’ll be running at a pure profit and can spend pretty much freely.

If we’re not spending because of FFP that makes it really unlikely we would have spent 300m on the market since the same rules will apply.

 

[taura]

Very happy about that. I really hope Thiaw gets a chance to prove his worth. I think he's really talented and could become a very good CB for us.

That just means Thiaw gets to be the last cb choice and FBT being the lb cover instead of Dest..which im fine with.
Watching Dest on the right makes me question a lot of things in life

 

[MilanBG]

So why didn't they pay more than RedBird to buy Milan? Why didn't they match Gerry's offer? Pay Elliott however much they're going to make from RedBird in interest on the vendor loan and then buy Milan. If they can't outbid Gerry, what makes you think they would have spent 300-400m on the market?

Agreed. This sounds like the typical interview by Mirabelli. The man dropped one of the hardest stinkers in the history of the transfer market and then spent 5 years trying to convince everybody that he did a fine job.

 

[vB9]

Why aren’t we spending? I don’t know, but it’s not because we don’t have the money. This is a fact.

They do have money. Its just that spending isnt in their nature

 

[vB9]

Dont new owners get a leeway in their spending?

 

[Hugh Janus]

Even if the guy's dropping a Mirabelli and is talking out of his ass about spending 300m which he likely is, it's a guarantee Investcorp (or whoever else for that reason) would've spent more than 600k during the worst month in our club's history.

 

[Hugh Janus]

No Maignan in the CL list, I think my man is going to retire at the end of the season.

 

[taura]

No Maignan in the CL list, I think my man is going to retire at the end of the season.

Goalies have extra rules, you can switch them 24h before the match

 

[Massaro94]

 

[Hugh Janus]

Goalies have extra rules, you can switch them 24h before the match

Had no idea, thanks.

He's still retiring tho.

 

[Omer]

For years, we have been asking to sign Haaland before he became Haaland, sign Mbappe when he was still a kid playing in the streets of Paris, etc.

I think Lazetic could be that guy. We spent 5m for a complete unknown from Serbia. His analytics must be off the charts. He seems to have a good head about him.

Forget all the negativity for a second. Imagine this. A world in which we have a EASTERN EUROPEAN BOMBER who we picked up from obscurity and grew into a world class forward. CF problem solved for the next 15 years. YouTube videos coming out praising our scouting.

How awesome would that be?

At Lazetic age, Mbappe was already one of the best fwds in the world! He reached SF of the Champions League with Monaco while he was 18. He scored six times in six games in the knockout rounds that season as Monaco reached the semi-finals, including a brace in the 3-2 win away to Borussia Dortmund in the first leg of the quarter-finals.

Even Hojlund of Atalanta is around the same age as Lazetic.

Now Lazetic seems talented, and could come good but expecting Mbappe / Haaland is unrealistic.

 

[brk]

Dont new owners get a leeway in their spending?

Hard to say. They need to get a settlement agreement at some point and that seems really hard to do for some clubs.

 

[brk]

At Lazetic age, Mbappe was already one of the best fwds in the world! He reached SF of the Champions League with Monaco while he was 18. He scored six times in six games in the knockout rounds that season as Monaco reached the semi-finals, including a brace in the 3-2 win away to Borussia Dortmund in the first leg of the quarter-finals.

Even Hojlund of Atalanta is around the same age as Lazetic.

Now Lazetic seems talented, and could come good but expecting Mbappe / Haaland is unrealistic.

Hojlund is perfect for us.

 

[Kojak]

So why didn't they pay a bit more to outbid RedBird, if they were willing to throw 300-400m on the market? Sounds like BS.

This is probably true given that the parties involved were Saudi plus Yonghong dropped 250m during his first market. However, Elliott obviously preferred RedBird's offer since it involved a 600m loan with 42m annual interest which is more profitable for them whereas the Saudi offer was pure cash. Also, RedBird probably allowed them to keep a bigger minority stake than the Saudi's.

Thanks for ruining my day!

 

[brk]

Had no idea, thanks.

He's still retiring tho.

Yeah but you can only switch back again after 30 days I think

 

[brk]

This is probably true given that the parties involved were Saudi plus Yonghong dropped 250m during his first market. However, Elliott obviously preferred RedBird's offer since it involved a 600m loan with 42m annual interest which is more profitable for them whereas the Saudi offer was pure cash. Also, RedBird probably allowed them to keep a bigger minority stake than the Saudi's.

Thanks for ruining my day!

They weren’t Saudi. They were Bahraini asset managers.

 

[Omer]

But if Investcorp wanted Milan so badly, and money was no object, why not give Elliott an offer they can't refuse? Gerry will end up paying around 50 or 60m in interest in total to Elliot for the vendor loan, he's not going to default on his loan no matter what. He's not Yonghong, he has the backing of some huge institutional partners. They won't Yonghong him. All Investcorp had to do was guarantee Elliott that they'll pay above what Gerry will pay in total, and maybe keep them on as minority shareholders like he did. But they didn't. And we're expected to believe they were willing to splash 400m on the market?

I think it's the additional bonus of 500 mil that Redshit offered Elliott. Elliott had agreed around the same price with Investcorp, maybe just 100 mil less. Redbird offered the additional bonus of 500 mil plus they took a high interest loan from Elliott.

It makes perfect sense for Investcorp not to want pay much more as well as invest big in transfers.

Lets says Investcorp buy Milan for 1.1 bil and invest 400 mil over 2 years. The value of the club increases, and in 4-5 years after buying they can sell it for 2.5 billion which is a 1 billion profit.

Now if they have to pay Elliott 100 mil more for the initial purchase plus another 500 mil bonus, then that 1 bil profit reduces to 400 mil, which is much lower!

I mean Elliott also invested in transfers when they got the club for just 300 mil. They covered 400 mil of losses over their time as Milan owners. And after their total investment reached 700 mil ( initial 300 mil plus 400 more ) they decided that it wasn't worth it for them to invest further amounts.

So the price you get a club for can definitely affect your further investment strategy.

Redshit think running the club at break even and just building a stadium will be enough to get a big increase in valuation. And those leeches Elliott were just interested in what was the best deal for themselves.

 

[brk]

This is probably true given that the parties involved were Saudi plus Yonghong dropped 250m during his first market. However, Elliott obviously preferred RedBird's offer since it involved a 600m loan with 42m annual interest which is more profitable for them whereas the Saudi offer was pure cash. Also, RedBird probably allowed them to keep a bigger minority stake than the Saudi's.

Thanks for ruining my day!

Sure but they’re not getting that money for free. They’re loaning 600m at a reasonable interest rate.

 

[Kojak]

They weren’t Saudi. They were Bahraini asset managers.

It was a joint offer between Investcorp and MFO who represent the Saudi royals as the article says.

 

[vB9]

They were Bahraini asset managers.

Just like gerry, then... but much, much bigger

 

[brk]

I think it's the additional bonus of 500 mil that Redshit offered Elliott. Elliott had agreed around the same price with Investcorp, maybe just 100 mil less. Redbird offered the additional bonus of 500 mil plus they took a high interest loan from Elliott.

It makes perfect sense for Investcorp not to want pay much more as well as invest big in transfers.

Lets says Investcorp buy Milan for 1.1 bil and invest 400 mil over 2 years. The value of the club increases, and in 4-5 years after buying they can sell it for 2.5 billion which is a 1 billion profit.

Now if they have to pay Elliott 100 mil more for the initial purchase plus another 500 mil bonus, then that 1 bil profit reduces to 400 mil, which is much lower!

I mean Elliott also invested in transfers when they got the club for just 300 mil. They covered 400 mil of losses over their time as Milan owners. And after their total investment reached 700 mil ( initial 300 mil plus 400 more ) they decided that it wasn't worth it for them to invest further amounts.

So the price you get a club for can definitely affect your further investment strategy.

Redshit think running the club at break even and just building a stadium will be enough to get a big increase in valuation. And those leeches Elliott were just interested in what was the best deal for themselves.

Too early to come to this conclusion. Let’s wait until the end of the summer transfer window.

 

[Alo88]

Milan, listen to MFO CEO Villani: 'We guaranteed 300-400 million euros to strengthen the team on the transfer market'​

The Milan prosecutor's office investigates the sale of AC Milan by Elliott to RedBird. In the papers there is also the reconstruction of the negotiation that began in November 2021 and fell through in May 2022 with the Arab fund Investcorp (based in Bahrain) together with the investment platform MFO Multi Family Office Equity Partners (based in New York and present among investors of the Saudi royal family, with Saudi Crown MFO). The buyers invested the same amount (1.2 billion euros) in cash without any loan from the seller. The Singer family preferred Gerry Cardinale, to whom they lent around 600 million euros, at an interest rate of 42 million a year.


RedBird has also left the Singer fund a substantial say in the corporate decisions of the AC Milan club, starting with the austerity line on the market.


The Italian-American financier Carmine Villani, managing director of MFO and protagonist of the first negotiation, explained to the newspaper La Repubblica on newsstands today: "I can't go into details, but I can confirm that our consortium had undertaken both to acquire all the majority shares in Milan and to guarantee the subsequent investment on the market of 300-400 million euros , to immediately bring the team back to the highest level in Europe, like its history he deserves. It was all 'equity'. If Elliott had wanted to, we would have left him minority interests."

So you're telling me they couldn't outbit shitty stingy RedBird, but they had an extra 300-400M ready for the mercato? And it would have all been fine with UEFA and FFP given that that budget would have been like almost twice our entire revenues back then?

So why didn't they pay a bit more to outbid RedBird, if they were willing to throw 300-400m on the market? Sounds like BS.

Voilà.

how convinient for such news to come out right before the derby eh?

I strongly believe this is Marottas doing. The man has connections and has always thrown bullshit at us whenever we were about to face a team managed by him.

Take the Gazetta and Leao fiasko. I mean Gazetta is literally ignoring the fact that Inter is going to loose Skriniar for 0 (go check their frontpages). Meanwhile they make literal shit up from thin air to throw shades on the Maldini-Leao-friendship. But hey who cares that Inter got offered 50M only six months ago and that Inter refused to take those despite the player was actually willing to go and to not let his contract run out?

I mean c'mon it was a weekly drama last season with Kessie, but now, with Skriniar, Gazetta prefers to make shit up between Maldini and Leao instead?! Come fucking on! There's more to that than journalist just being prejudiced.

 

[MilanMB]

Investcorp sounds badass tbh

Redbird not so much...

 

[brk]

It was a joint offer between Investcorp and MFO who represent the Saudi royals as the article says.

Investcorp has a ton of GCC partners and investors. It’s not a special AC Milan thing for the deal, they were just making it sound more exotic than it actually was.

 

[Kojak]

Sure but they’re not getting that money for free. They’re loaning 600m at a reasonable interest rate.

42m a year is still better than earning nothing and they have another opportunity to reclaim the club if RedBird default on the loan (like Yonghong) plus there are other performance-linked bonuses in Elliott's favour. Basically, they took the best offer for THEM and not Milan. Also, after winning the Scudetto on a modest budget and stacking the team with young talents who's values skyrocketed last season, they probably thought that an expensive market wasn't necessary.

 

[Hugh Janus]

Where's this copium story that Investcorp couldn't outbid Gerry Cardinale coming from?

No way people actually believe in that.

 

[brk]

42m a year is still better than earning nothing and they have another opportunity to reclaim the club if RedBird default on the loan (like Yonghong) plus there are other performance-linked bonuses in Elliott's favour. Basically, they took the best offer for THEM and not Milan. Also, after winning the Scudetto on a modest budget and stacking the team with young talents who's values skyrocketed last season, they probably thought that an expensive market wasn't necessary.

No it’s not the same. They could have used that money elsewhere and probably made more than 7% based on their prior performance. They weren’t scamming Gerry. Investcorp could have easily taken the same deal with a bit more over the top. They didn’t and backed away.

Also, why are we believing this news and ignoring news that they wanted Berlusconi to join them in the deal? They’re both pulled out of someone’s ass so why believe this and not that?

 

[brk]

Where's this copium story that Investcorp couldn't outbid Gerry Cardinale coming from?

No way people actually believe in that.

It’s coming from the fact that they decided to walk away from the deal. Means they value their money and don’t want to overspend. Which makes it highly unlikely they would have broken FFP rules (and risked major fines) and spent 300m (more than what we made last year).

 

[Alo88]

So are we seriously going to buy reports about what could have been a 300-400M mercato days before the derby?

Are we!?

I mean, they found out about such sensational news just now!?

 

[Alo88]

Li got himself a year long ban from EL because he spend 200M in one summer. Now you're telling me we are going to believe those guys who didn't want to outbid Redbird would have been willing to drop 300-400M just like that - and UEFA would have just stood by?