- Main Street investors include LeBron James
- Milan programming could appear on YES Network
- RedBird’s Gerry Cardinale seeking co-investors to reduce size of loan to buy club
The New York Yankees and the Main Street Advisors investment fund are joining AC Milan’s new owner US private equity firm RedBird Capital Partners as investors in the Italian soccer champions, according to the Financial Times.
The Major League Baseball (MLB) franchise and Los Angeles-based fund, which counts basketball ace LeBron James among its investors, will reportedly become shareholders in the Serie A club.
The pair are set to be announced as partners as early as 31st August when it is expected RedBird will officially take control of Milan from its current owner, US hedge fund Elliott Management.
RedBird confirmed in June it had reached an agreement to acquire Milan in a deal that valued the club at €1.2 billion (US$1.2 billion).
According to the Financial Times, the Yankees will work closely with RedBird managing partner Gerry Cardinale to increase Milan’s revenues and on-field success, having secured their first Serie A title in 11 years last season.
Part of the collaboration could reportedly include Milan programming on the YES Network, the regional sports network (RSN) owned by the Yankees, Sinclair Broadcast Group, Amazon, Blackstone, Mubadala and RedBird.
National Basketball Association (NBA) icon James, meanwhile, already has ties to RedBird after the firm invested in his SpringHill Company media firm last October. The backing valued the company at US$725 million.
James, who has a stake in English soccer giants Liverpool, is a reportedly a passive investor in Milan through Main Street and will not take a direct stake in the club.
The Financial Times adds that Elliott agreed to lend RedBird €600 million (US$602 million) to help fund the Milan takeover. With interest charged at seven per cent, Cardinale has reportedly spent the summer talking to potential co-investors in order to reduce the size of the loan. It is unclear how much of the club the Yankees and Main Street will own.
SportsPro says…
The Yankees and Main Street’s involvement further demonstrates the desire from US investors to get involved in European soccer. Five of Serie A’s 20 clubs have American majority owners, while England’s Premier League has seven.
For the Yankees, MLB’s most valuable franchise, the deal would add to a soccer portfolio that includes Major League Soccer’s (MLS) New York City FC, which it has a 20 per cent stake in.
Cardinale has previously worked regularly with the Yankees, including during his time at Goldman Sachs, and his existing business network of athletes and celebrities reportedly helped facilitate Main Street’s involvement. Fresh capital and high-profile backers, coupled with the glitz and glamour of the city of Milan, could be a potent mix as RedBird bids to make I Rossoneri a commercial behemoth.
