Thursday December 14 2017
Elliott make Milan preparations

It’s reported Elliott Management could even hold on to Milan if the club and owner Yonghong Li default on their debt.

The US hedge fund loaned the club and Li’s company, Rossoneri Sport Investment, a total of around €300m, which must be repaid by October 2018.

If that money isn’t paid back, then Elliott can take over the club, and would control all of the assets.

The Diavolo leadership are looking to refinance the loan, with due diligence currently being undertaken by Highbridge.

If that is successful, they would then enter into negotiations to refinance the debt.

According to Calcio e Finanza, however, financial organisations like Merrill Lynch and Goldman Sachs were ready to refinance the club, but they’re nervous about refinancing Li.

The owner is somewhat of an enigmatic figure, with doubts raised last month about whether he actually owns the phosphate mining companies he has reportedly claimed to.

Should a refinancing deal prove impossible, Li would lose his investment and Elliott would take over the club.

One of the fears surrounding this scenario for Rossoneri fans was that the club would be asset stripped by the hedge fund, but Calcio e Finanza says that’s not necessarily true.

While they could look to sell to the highest bidder, the website reports that Elliott are also considering keeping the club.

Gordon singer, the son of Elliott Management founder Paul Singer, is a football fan, and supports English Premier League side Arsenal.

The hedge fund have reportedly looked into the possibility of replacing sporting director Massimiliano Mirabelli and CEO Marco Fassone.

The latter was actually the person who introduced Li to the fund, effectively saving the Chinese takeover.