AC Milan Owner Gerry Cardinale on Transfer Strategy and Stadium Development
In a recent Harvard Business School case study on AC Milan, club owner Gerry Cardinale shared his thoughts on various aspects of the team’s operations. Here are some key points from his statements:
Transfer Strategy
Regarding the sale of Sandro Tonali to Newcastle United, Cardinale emphasized that it was an opportunistic move rather than a necessity. “We received an excellent offer and made a risk-reward assessment,” he explained. The transfer brought in €70 million plus potential bonuses, setting a Serie A record. This sale allowed the club to acquire six new players and revamp the squad.
Cardinale stressed, “We don’t sell out of need; we sell opportunistically. By maintaining discipline, we can always find market counterparts that enable extraordinary returns on players.”
Stadium Plans
On the topic of a new stadium, Cardinale expressed interest in either significantly renovating the existing stadium or building a new one to reflect the club’s status as a live entertainment company. He noted that for the cost of renovation, they could likely construct an entirely new stadium.
However, Cardinale highlighted the challenges of building stadiums in Italy, mentioning that the last stadium built in the country was in 2011 with a 40,000-seat capacity. He envisions a modern 70,000-seat stadium but faces obstacles: “We’re not receiving much support from the local government to obtain urban planning approvals for our preferred location.”
Cardinale also pointed out the misalignment between building an American-style stadium, which could cost over €1 billion, and the inability to implement American-style pricing. “It’s a real challenge,” he concluded.