Key Takeaways
- • Elliott Management, the $35 billion hedge fund led by Paul Singer, took control of AC Milan after Asian businessman Li Yonghong defaulted on a loan payment of approximately $37 million due to the fund.
- • Elliott had loaned Li nearly $400 million last year to help him buy the club from former Italian Prime Minister Silvio Berlusconi for $864 million.
- • Singer said he planned to invest $66 million within hours of securing ownership to stabilize the team's finances.
- • AC Milan was banned from European competition in June for breaching UEFA financial fair play rules; the club is appealing that decision.
Summary
Hedge fund billionaire Paul Singer's Elliott Management has gained control of AC Milan, the 119-year-old Italian soccer club that competes in Serie A, according to the New York Post. Control passed to the fund after Asian businessman Li Yonghong failed to make a $37 million loan payment due on Friday, a default that gave Elliott the right to take over the embattled team.
Elliott, which manages about $35 billion, had lent Li nearly $400 million last year to help finance his purchase of the club from former Italian Prime Minister Silvio Berlusconi for $864 million. The default effectively transferred the team's ownership to the hedge fund.
Shortly after securing ownership, Singer said he planned to invest $66 million to stabilize the club's finances. In a statement, he said, "Financial support, stability and proper oversight are necessary prerequisites for on-field success and a world-class fan experience." Elliott also said it looked forward to "returning the club to the pantheon of top European football clubs where it rightly belongs."
The takeover comes as AC Milan faces significant sporting and financial pressure. The club was banned from European competition in June after breaching UEFA's financial fair play rules, and it is appealing that ruling.
The Post noted that Singer's personal enthusiasm for soccer may make the turnaround of AC Milan especially meaningful to him. His fondness for the sport surfaced during Elliott's 2017 battle with Arconic, when then-chief executive Klaus Kleinfeld sent Singer a letter that referenced the hedge fund manager's conduct during the 2006 World Cup.
Elliott, which manages about $35 billion, had lent Li nearly $400 million last year to help finance his purchase of the club from former Italian Prime Minister Silvio Berlusconi for $864 million. The default effectively transferred the team's ownership to the hedge fund.
Shortly after securing ownership, Singer said he planned to invest $66 million to stabilize the club's finances. In a statement, he said, "Financial support, stability and proper oversight are necessary prerequisites for on-field success and a world-class fan experience." Elliott also said it looked forward to "returning the club to the pantheon of top European football clubs where it rightly belongs."
The takeover comes as AC Milan faces significant sporting and financial pressure. The club was banned from European competition in June after breaching UEFA's financial fair play rules, and it is appealing that ruling.
The Post noted that Singer's personal enthusiasm for soccer may make the turnaround of AC Milan especially meaningful to him. His fondness for the sport surfaced during Elliott's 2017 battle with Arconic, when then-chief executive Klaus Kleinfeld sent Singer a letter that referenced the hedge fund manager's conduct during the 2006 World Cup.
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