New Chinese owners of Italy's AC Milan football club to invest in stadium


  • Business Premium
  • Friday, 14 Apr 2017

Chinese Han Li (R) and Italian Marco Fassone (L), representatives of Chinese consortium Sino-Europe Sports (SES) arrive to finalize the deal with Fininvest, the Silvio Berlusconi's holding, for the AC Milan's takeover by Rossoneri Sport Investment Lux, on April 13, 2017 in Milan. A new era in Italian football was hailed today after AC Milan were sold to Rossoneri Sport Investment Lux, formerly known as Sino-Europe Sports (SES), in a deal which sees the Chinese-led consortium take a 99.9 % stake in the club. Milan, the seven-time European champions who are Italy's most succcessful club at international level, have been owned since 1986 by Silvio Berlusconi, a former three-time Prime Minister of Italy. / AFP PHOTO

MILAN: The new Chinese owners of Italian football club AC Milan plan to invest in a stadium and could eventually list the team on a stock market to help revive its fortunes, AC Milan's chief executive-designate said on Friday.

Marco Fassone, an experienced football executive hired by the Chinese-led consortium to turn around the once high-flying and now loss-making AC Milan, said it needed its own stadium but this did not necessarily mean building a new one. He implied it could buy into Milan's existing council-owned arena, San Siro.

"We want to give AC Milan a stadium in the short term," Fassone told reporters a day after the consortium completed the purchase of AC Milan from former prime minister and media tycoon Silvio Berlusconi.

"We know that in Italy it cannot happen straight away... Whether it's San Siro or a newly built stadium, as long as the club can have its own stadium."

Currently, AC Milan and its local rival, Inter Milan, also Chinese-owned, rent the 80,000-seat San Siro arena from the Milan city council. By owning a stadium, AC Milan would gain a valuable new revenue stream, enabling it to control income from ticket sales and stadium advertising and marketing.

Fassone, a former executive at Inter and Juventus, said a stock market listing of AC Milan was a possibility but did not elaborate.

A source familiar with the matter said the club could be listed eventually in Hong Kong, on the doorstep of the huge Chinese market where AC Milan sees its financial future.

China's vast number of football fans are avid watchers of European football, and the value of European TV rights there has been soaring. On Saturday, AC Milan and Inter were to play the city derby at 12.30 p.m. local time - prime time in China.

MARKETING, LICENSING ARM PLANNED

Fassone said AC Milan would also create in coming months a China-based company for marketing, licensing and commercial operations, which would feed into revenue growth.

The consortium bought the club for 740 million euros ($788 million) in a troubled deal that finally closed on Thursday, eight months after it was agreed. In selling, Berlusconi was unwilling to come up with the big new investments required to enable AC Milan to better compete with its big European rivals.

The consortium used a Luxembourg-based vehicle, Rossoneri Sport Investment Lux, to buy AC Milan, one of Italy's most storied teams.

Rossoneri Sport is controlled by Chinese investor Li Yonghong but its full ownership has not been disclosed.

An anti-Mafia official at Milan's city council renewed on Friday his call for the new Chinese owners to reveal their full identities, noting that it was important for the Milan council to know exactly who was using its San Siro stadium.

"I will renew my request today to know the real owners of AC Milan," David Gentili, a politician who heads the council's anti-Mafia commission, wrote in a Facebook post.

Fassone said that Li was the only shareholder and that he did not know if Li planned to bring in more investors.

The AC Milan purchase, the biggest Chinese investment in a European club, tightens China's grip on Italian football. Retail giant Suning Commerce Group's bought Inter Milan last year, and a Chinese firm also underwrites the media rights to Italy's top league, Serie A. - Reuters

Article type: metered
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

AC Milan , Fassaone , Li , Chinese , stadium , Juventus , football ,

   

Next In Business News

Oil rebounds on speculation Omicron-related drop overdone Premium
Singapore adds to its gold pile for the first time in decades Premium
MyEG net profit climbs in Q3 Premium
7-Eleven Malaysia to expand pharmacy business into Indonesia via JV� Premium
KPower registers lower Q1 profit due to lockdown woes� Premium
Glove stocks rally as new Covid-19 variant spooks investors � Premium
IJM Corp posts RM639mil net profit in Q2 on disposal gain� Premium
Axiata signs science-based target initiative pledge to commit to net zero initiative Premium
Aurelius Technologies aims to raise RM104.73mil from Main Market listing Premium
Sime Darby earnings impacted by China industrial slowdown in Q1FY22 Premium

Others Also Read


Vouchers