[Jack Sparrow]

Just some tidbits that popped up on Football-Italia.

Reports say Silvio Berlusconi has agreed to sell Milan to a Chinese group of investors for €700m.

Tuttosport writes today that Berlusconi has accepted the offer to sell the Rossoneri after a long and intense series of negotiations.

The talks were concluded at a law firm in Rome according to the newspaper, who believe that a preliminary agreement will be signed between Friday and Monday.

There were reports this morning that Jack Ma is leading the Chinese group, but the official identity of the investors is still unknown.

Tuttosport believes that Robin Li, the sixth most powerful man in China according to Forbes, is also a possible investor.

The group will take over 100 per cent of the club’s shares, an initial 70 per cent and then the further 30 per cent over the course of a year.

The Chinese bidders put between €700-720m on the table to buy the San Siro giants, says the report.

The phase of due diligence, where the club’s accounts are analysed, was completed last week according to the paper.

Jack Ma, China’s richest man, is reportedly leading the group interested in Milan and he wants to build a new stadium.

La Repubblica reports today that Ma, founder of the Alibaba group and co-owner of Chinese club Guangzhou Evergrande, is heading the group that are in talks to take over the Rossoneri.

The investors from Peking should get a reply from President Silvio Berlusconi before the end of the week about whether they can enter exclusive negotiations.

If they get the go-ahead, the analysis of Milan’s accounts will begin which could be concluded quite quickly.

Therefore the outlet writes that if everything goes smoothly, a deal could be signed off by mid-June.

One of Ma’s first projects would be to build a new stadium owned by the club, says the report.

Another change that could take place would be the insertion of former Guangzhou Coach Marcello Lippi as technical director, according to the newspaper.

Ma’s Alibaba group includes Taobao (the Chinese Ebay), Aliplay (an electronic payment system), Weibo (the Chinese Twitter) and Alibaba pictures ($3m of investment in the film industry.)

According to Forbes magazine he has an estimated net worth of $24.1 billion and is the 18th richest person in the world.

Milan’s holding company Fininvest has reportedly denied that Silvio Berlusconi has sold the club for €700m.

Reports emerged today that the Rossoneri owner had agreed to sell the club to a group of Chinese investors, possibly led by billionaire Jack Ma.

However, Milan News has reported that they have received a communication from Fininvest denying the rumours that a sale had taken place.

Pier Silvio Berlusconi, son of the Diavolo chief, has also denied any knowledge of a sale taking place today.

More than the takeover going through, I'm interested to see who they bring in as staff. I would be really interested to see how this works out.

[Danny]

It might well be. We might have replaced Italian gangsters with Chinese. (IMG:style_emoticons/default/laugh.gif)

That optimism of yours lasted long (IMG:style_emoticons/default/tongue.gif)

[han2503]

That optimism of yours lasted long (IMG:style_emoticons/default/tongue.gif)

It crossed my mind, but I would think if Silvio wanted to launder money he'd do it in a less public setting.

Now that it's finally done and dusted, I think it's legit. The true test is to see how the club is run over the next few years. And us, as fans, can't really do anything but watch and hope that the club is in good hands

[Rossoneri7]

So there is a curve ball to this deal. This Elliot hedge fund based in the US granted €330M to close the deal. The same carries interest of over 11% and is due to be paid back in a year and a half from now as a single payment. The Elliot hedge fund will have no power over the board and will not dictate transfers. Instead receive a written report every two months on the progress and increase in value of the 99.9% shares owned by Rossoneri Sport Lux.

If the new owners fail to pay the 330M back in a year and a half from now, the 99.9% shares in Milan will be transferred to Elliot hedge fund whom will likely sell it off in the market.

That is; things could get ugly if the Chinese don't get their capital released from China in time.

[Jack Sparrow]

So there is a curve ball to this deal. This Elliot hedge fund based in the US granted €330M to close the deal. The same carries interest of over 11% and is due to be paid back in a year and a half from now as a single payment. The Elliot hedge fund will have no power over the board and will not dictate transfers. Instead receive a written report every two months on the progress and increase in value of the 99.9% shares owned by Rossoneri Sport Lux.

If the new owners fail to pay the 330M back in a year and a half from now, the 99.9% shares in Milan will be transferred to Elliot hedge fund whom will likely sell it off in the market.

That is; things could get ugly if the Chinese don't get their capital released from China in time.

Surely not. Surely only the 330MM worth of shares will get transfered. They can sell it or put it on the stock market to get their cash back.

[Rossoneri7]

Surely not. Surely only the 330MM worth of shares will get transfered. They can sell it or put it on the stock market to get their cash back.

Apparently 99.9% of Milan shares is the agreement, as security.

[han2503]

Apparently 99.9% of Milan shares is the agreement, as security.

Yep

I think this is a common practice, for example when we loan money from a bank here in Malta and it's a substantial amount, you have to make a guarantee (for example your home). If you fail to make your payments, then the bank WILL repossess your home, even if the amount you borrowed is half of what your home is worth

[d'Arc.LP]

Yep

I think this is a common practice, for example when we loan money from a bank here in Malta and it's a substantial amount, you have to make a guarantee (for example your home). If you fail to make your payments, then the bank WILL repossess your home, even if the amount you borrowed is half of what your home is worth

It all depends on the agreement. As a lawyer, I can say that this is not the case in most of the times. Every country has it's own law for execution by which they regulate the procedure of the execution of the debts (or other credits). Usually, for your example, when they sell your home in auctions, they take the money that you own, all the expences of the procedure and they give you the rest. I have not read the contract, but I think that the same way has been regulated the situation of the club. If it would be as you say, it would be a situation when we get "unbiased enrichment" and "damage beyond measure".

BTW the bank will never own your home, it will just get the right to sell it, but never become an owner (IMG:style_emoticons/default/smile.gif) I don't have much time to explain and my english is not in proper levlel.

EDIT: I forgot to mention, when an international transaction takes place, usually they have clauses in contracts that determine what court is competent to hear the case if any of the party doesn't fulfill their obligation. Usually they are arbitration courts that regulate their procedure by the rules contracted and not some law of any country. As the principle says "contract is the law for parties".

This post has been edited by d'Arc.LP: Apr 24 2017, 11:17 AM

[Fillipo Simone]

I hear Panucci might be involved in our staff as a team manager [FI]. Would be fine with me.

[Jack Sparrow]

I hear Panucci might be involved in our staff as a team manager [FI]. Would be fine with me.

Rino Gatuso or GTFO! (IMG:style_emoticons/default/laugh.gif)

[han2503]

It all depends on the agreement. As a lawyer, I can say that this is not the case in most of the times. Every country has it's own law for execution by which they regulate the procedure of the execution of the debts (or other credits). Usually, for your example, when they sell your home in auctions, they take the money that you own, all the expences of the procedure and they give you the rest. I have not read the contract, but I think that the same way has been regulated the situation of the club. If it would be as you say, it would be a situation when we get "unbiased enrichment" and "damage beyond measure".

BTW the bank will never own your home, it will just get the right to sell it, but never become an owner (IMG:style_emoticons/default/smile.gif) I don't have much time to explain and my english is not in proper levlel.

EDIT: I forgot to mention, when an international transaction takes place, usually they have clauses in contracts that determine what court is competent to hear the case if any of the party doesn't fulfill their obligation. Usually they are arbitration courts that regulate their procedure by the rules contracted and not some law of any country. As the principle says "contract is the law for parties".

Got it, I'm not really into the financial mumbo-jumbo of it all. I just know that here, the bank will repossess whatever you guaranteed when the loan was made, don't know the actual technicalities of it. Thanks for explaining, and glad you're back btw

Yeah, heard the Panucci rumours. The management should really make sure to bring back more past players who have a great history with us into the fold, we need to keep our identity as much as possible

Rino has already said he'd be interested, also, how's Sheva doing with that political career? If it's not going well he'd be a great guy to rope in, especially for Eastern European connections. Also, what's Leonardo doing these days? I'd love to have him back in his old role, he was great at attracting SA talents

[d'Arc.LP]

Got it, I'm not really into the financial mumbo-jumbo of it all. I just know that here, the bank will repossess whatever you guaranteed when the loan was made, don't know the actual technicalities of it. Thanks for explaining, and glad you're back btw

Thanks (IMG:style_emoticons/default/smile.gif)

[Jack Sparrow]

Got it, I'm not really into the financial mumbo-jumbo of it all. I just know that here, the bank will repossess whatever you guaranteed when the loan was made, don't know the actual technicalities of it. Thanks for explaining, and glad you're back btw

Yeah, heard the Panucci rumours. The management should really make sure to bring back more past players who have a great history with us into the fold, we need to keep our identity as much as possible

Rino has already said he'd be interested, also, how's Sheva doing with that political career? If it's not going well he'd be a great guy to rope in, especially for Eastern European connections. Also, what's Leonardo doing these days? I'd love to have him back in his old role, he was great at attracting SA talents

I don't think Sheva is doing much politics. He's the manager of the Ukraine football team. It's Kakha Kaldaze who's into politics and apparently he's doing quite well.