AC Milan CEO Reveals Truth About Club’s Ownership Transition

Giorgio Furlani, AC Milan’s CEO, recently shared insights into the club’s ownership transition in a Harvard Business School case study. His revelations shed light on the complex financial maneuvers that led to Elliott Management’s acquisition of the renowned Italian football club.

Furlani recounted how he initially dismissed the idea of investing in AC Milan, believing football clubs to be unprofitable ventures. However, the opportunity arose when Chinese businessman Yonghong Li faced a €300 million shortfall in his €740 million acquisition of the club. Elliott Management saw potential for a good return and provided the necessary funding.

Despite Li’s assurances of repayment within 18 months, he defaulted on the loan by July 2018, leading to Elliott’s takeover. Furlani described the club’s state under Li’s brief ownership as worse than mismanaged, stating it was effectively not managed at all.

Following the acquisition, Elliott Management focused on three key areas:

1. Improving on-field performance to retain fan support and secure lucrative Champions League revenues.
2. Balancing success with financial sustainability, avoiding the pursuit of success at all costs.
3. Investing in commercial operations to monetize improved results through sponsorships and other activities.

The company brought in experienced management, including Ivan Gazidis, to implement these strategies. Furlani emphasized the importance of living within the club’s means while striving for both sporting and financial success in the competitive world of European football.