AC Milan have been taken over by Elliott Management following owner Yonghong Li’s failure to pay off his debts
The Chinese businessman failed to meet the last month’s deadline to pay €32m into the loan that he owned to American hedge fund Elliott Management, who loaned him the capital last year to buy Milan.
In fact, Yonghong Li was loaned an incredible €303m from Elliott in April 2017 and the American firm have now taken legal action against him, as well as taking over Milan.
The goods for Milan fans is that Elliott intends to inject €50m into the club to stabilise their finances.
“Ownership and control of the holding company that owns AC Milan has today been transferred to finds advised by Elliott Advisors (UK) Limited (“Elliott”),” read a statement, via Football-Italia.
“This transfer has occurred as a result of steps taken to enforce Elliott’s security interests after the previous owner of AC Milan defaulted on its debt obligations to Elliott.
“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.
“Elliott fully appreciates the challenge and responsibility that ownership of this great institution entails. Elliott is pleased not only to support the club during this difficult time, but also by the challenge of achieving ambitious objectives in the future via the on-field success of coach Gattuso and his players.
“As first measures, Elliott intends to inject €50m of equity capital to stabilise the club’s finances, and plans to inject further capital over time to continue to fund AC Milan’s transformation.”