Ownership
In August 2022, RedBird Capital Partners, led by Gerry Cardinale, acquired a majority stake in AC Milan for €1.2 billion. This acquisition included minority investments from high-profile figures such as LeBron James, Drake, and entities like Yankee Global Enterprises. Under RedBird's ownership, AC Milan has pursued growth and innovation. There has been some recent controversy surrounding the true ownership of AC Milan. Investigations were conducted by Italian prosecutors in March of last year into the true ownership of the club. The American owners have denied these allegations stating, “RedBird Fund IV and its investors own 99.93% of AC Milan; the other 0.07% are individual legacy Italian investors that are long standing fans of the club. The notion that RedBird doesn’t own and control AC Milan is just false and contradicts all the evidence and facts.”
In the 2022-2023 financial year, AC Milan reported a consolidated revenue of €404.5 million, a 36% increase from the previous year. This surge was primarily driven by enhanced commercial activities and strategic partnerships. Notably, the club achieved a net profit of €6.1 million, marking its first profit since 2006. The positive financial trend continued into the 2023-2024 season, with revenues reaching €457 million, surpassing the previous record. This consistent growth underscores the club's effective commercial strategies and operational efficiencies. However, despite record revenues, the club reported a slight decline in audiovisual and ticketing revenues, primarily due to the men's first team's performance in European competitions.
AC Milan's operational expenses have been strategically allocated to enhance team performance and infrastructure. Significant investments were made in player acquisitions and salaries to bolster the squad's competitiveness. According to Daniella Proch for Forbes magazine, “The club claims that the growth in revenue has been reflected in ‘over €100 million invested across the last two seasons’ transfer windows’ for players like USMNT attacker Christian Pulisic, Dutch midfielder Tijjani Reijnders and Nigerian winger Samuel Chukwueze.” Additionally, the club launched the ‘Milan Futuro’ project, centered around a team which competes in the Serie C and involves mostly young talent in the organization. Since its acquisition by RedBird Capital Partners in 2022 for €1.2 billion, AC Milan has experienced a strategic overhaul aimed at financial prudence and growth. Gerry Cardinale, founder of RedBird, has emphasized the importance of sustainable financial practices, cautioning against the "massively inflated" valuations driven by private equity investments in sports. This perspective influences AC Milan's approach to investments and valuations, aligning with a more measured and sustainable growth strategy.