AC Milan, one of the most iconic football clubs in Italy, experienced difficult times before finally finding its way to revival. Giorgio Furlani, CEO of AC Milan, revealed the club’s journey from almost bankruptcy to recovery under the ownership of Elliott Management.
Before being taken over by Elliott Management, AC Milan had experienced significant financial problems over the last few years, especially during Silvio Berlusconi’s ownership period. The transfer of ownership into the hands of Yong Hong Li’s Sport Investment Lux seemed to bring a breath of fresh air at first.
However, problems arose when Li was unable to pay the debt he owed Elliott Management. This debt is related to the purchase of AC Milan ownership from Silvio Berlusconi. This situation forced Elliott Management to confiscate ownership of Milan from Li’s hands.
Since then, Elliott Management has made major changes to restore AC Milan’s condition. One of the key steps taken was the sale of a majority of the club’s shares to RedBird Capital in June 2022. This provided a much-needed capital injection to improve the club’s financial condition.
In the DLA Piper Sport Forum, Giorgio Furlani revealed that AC Milan almost went bankrupt under Yong Hong Li’s ownership. However, with intervention and effective management from Elliott Management, the club managed to overcome these challenges.
Furlani explained the four fundamental pillars that are the focus of changes made by Elliott Management. First, sporting success on the field is the main priority. Second, cost adjustments were made, especially regarding players who had high salaries but unsatisfactory performance. Third, investment in the commercial sector to increase club income. And fourth, plans to build a new stadium.
Unfortunately, plans to demolish the Giuseppe Meazza Stadium aka San Siro and build a new stadium in that place encountered obstacles. Even so, AC Milan remains committed to developing the project, even at an alternative location in San Donato.
The story of AC Milan is a clear example of how effective management, smart investment and a focus on club sustainability can bring positive change. With this revival, the Rossoneri are once again a force in Serie A and are ready to face greater challenges in the future.
