It makes sense for AC Milan, the FSG and Liverpool investor, to move to £ 1bn after an increase of £ 176m. – Blessing Sports News


FSG partner RedBird Capital Partners bought AC Milan earlier this mont

Gerry Cardinale, founder and managing partner of Redbird Capital Partners

Earlier this month, RedBird Capital Partners signed a deal to buy a majority stake in Italian champions AC Milan.

Milan became the second European football club to acquire a majority stake in RedBird, who bought an 11 percent stake in Liverpool FC owners Fenway Sports Group in March 2021 for $ 750 million. The deal makes the New York-based investment the third largest shareholder in the FSG, making Liverpool FC, the Boston Red Sox, Pittsburgh Penguins, RFK Racing and other related businesses a minority.

Founded in 2014 by managing partner Jerry Cardinale, RedBird entered European football before the acquisition of Milan, and in the summer of 2020 acquired a controlling stake in France’s second-tier Toulouse, owning part of the Reds through the FSG. Former Liverpool sporting director Damien Comolli was appointed to lead the event, and Les Violets returned to Ligue 1 after winning the Ligue 2 title last month.

The small stake in the Spanish team Malaga, which remains in dispute over ownership in a Spanish court, is a small part of RedBird’s sports portfolio, but last year it agreed to buy shares in Rajasthan Royals, a cricket franchise in the Indian Premier League. Earlier this month, IPL set a new record at an auction, doubling the value of the previous deal to $ 6.2 billion.

He then co-owns the XFL with Hollywood superstar Dwayne Johnson and Johnson’s ex-wife Dani Garcia. The XFL was bought by RedBird for $ 15 million due to its bankruptcy, and is expected to sign a long-running broadcast deal with Disney the following year.

Another US investment fund, Elliott Management, quickly agreed to buy AC Milan for £ 1 billion ($ 1.2 billion). The Bahraini investment fund Investcorp has been trying to sign a deal for some time, even entering a state of emergency, but it has since gone into RedBird and allowed them to play their own game, which took weeks to resolve.

The club is now in the hands of the Cardinale and his team, with plans to keep technical director and legendary player Paolo Maldini in place and secure the success of the Serie A champions, who won their first Scudetto in 11 years. Under Stefano Pioli last season.

RedBird wants to see the opening of a new stadium in Milan, which will not only provide the club with housing that suits their status, but also a stadium that will host major Italian music and entertainment events. They also want Paris Saint-Germain to use their position in the urban fashion world to find ways to add new revenue streams and use lifestyle brands using their Air Jordan / Nike link. – up.

They will closely monitor spending and follow the same principles as the FSG in Liverpool, seeking to increase player profits and reduce transfer costs and wage arrears in line with revenue growth to help reinvest. By the 2025/26 season, UEFA will tighten the team’s cost-benefit ratio to no more than 70 percent, according to a new financial regulation introduced this month. According to football financial analyst Ramble from Switzerland, Milan is currently at 85 per cent.

Compared to the £ 2.5bn sold to Chelsea’s Todd Boely and Clearlake Capital earlier this month, AC Milan’s price tag may seem cheaper, but the decline in Serie A media revenue in the Premier League is nothing for the Cardinals. The desire to try and solve means that the money to enter Italian clubs is much less.

However, seeing the growth potential of cricket and the XFL, RedBird believes AC Milan can grow exponentially, according to the latest data from Brand Finance’s sports industry brand analysts.

Every year, Brand Finance tests the 5,000 largest brands and publishes about 100 reports that rank brands from many industries and countries. Brand Finance Football is one of the 50 most valuable and powerful brands in the football industry. This assessment, developed by a professional accountant in accordance with ISO brand valuation standards, aims to estimate the net economic benefits of brand licensing in the open market. It determines the relative strength of a brand on a balanced scorecard of measures that measure marketing investment, stakeholder ownership, and business performance. This is not a report containing the value of the team and its stadium.

For AC Milan, the Rossoneri lag far behind Juventus’ top team in the 2022 report. The Juventus brand is valued at 705 million euros (608 million pounds) and Milan at 269 million euros (232 million pounds). Although this is a significant difference in brand value, AC Milan, which fell behind in 2010, has hidden the 76 percent increase in brand value in world football over the past 12 months. During this period, the increase in brand value amounted to 176 million pounds.

A report by Brand Finance said: “AC Milan, the world’s fastest-growing football brand, has taken steps to regain its former glory and grow rapidly in brand value and brand strength. The club’s Brand Strength Index rose 6.8 points to 77.2. The AC Milan brand has moved up 12 places, from 29th to 17th place, surpassing several other clubs in the rankings.

“The value of the AC Milan brand remains 16 per cent lower than the pre-epidemic 2019 mark of € 321 million, but the club hopes to overcome the significant gap in brand value and maintain its brand value since being ranked seventh in the brand this time around. first class of the year. “

Liverpool beat rivals Manchester United in the 2022 report, and Jurgen Klopp’s success at home last season exceeded the club’s brand value by billions.

Liverpool, who ranked sixth in the list of plague-affected brands in the May 2021 report, have increased their brand value by 31 per cent in the last 12 months to £ 1.1 billion. Old Trafford’s shirt has fallen 11 percent from Manchester United in the past year.

Liverpool’s growth compared to United has been driven by on-field and off-field success. The Red Devils have never been third since Brand Finance analysts began compiling the list.

According to Brand Finance, Liverpool have seen the highest increase in brand value in the last 12 months, with 92.9 points, confirming the AAA + brand rating, an increase of 3.9 points this year, more than any other top club. 10.

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