AC Milan Forums - Unofficial

I've not commented on the Elliot Group financing the sale too much, but I'm extremely concerned about this deal if I'm honest. Simply put I don't trust hedge funds, and vulture funds (which Elliot are probably the most famous example of) are downright scary. Yonghong Li at this point has no guarantees that the loan can be paid back, with Elliot holding all the power and frankly this whole situation has something off about it.

Here's an article on what we're getting ourselves into with Elliot:

http://www.football-italia.net/101811/vu...ling-milan

For those interested in understanding more about hedge funds, I'd highly recommended digging out John Oliver's: Last Week Tonight piece that covered it. It was one of the best explanations of the potential risks with hedge funds that I've seen.

Simply put, as many reasons as there are to be optimistic that a sale has finally happened, at this point there are probably more reasons to be concerned than there are optimistic. I don't want to seem to pessimistic about the new ownership, but just be prepared because this situation could result in something very nasty and frankly we could end up worse off than we were under Silvio.

The thing about a sports team is that there is nothing that a hedge fund can break up into pieces and sell off for its own gain after the owners fail, we don't even own a stadium. I think a hedge fund being involved in a company is dangerous where they will take control of assets like buildings and inventory, equipment and do something with it. Milan has the players and what? milanello and Casa Milan? In the case of sports teams the danger is not as bad, it is in the interest of all involved that it does well.

That's partly what worries me Reza. What exactly was the motivation for them to get involved? The club's assets are going to be limited based on what we know, so that just raises alarm bells for me as it only further makes me suspicious about the whole situation.

I'm convinced there's something here that we don't know because I just can't reasonably make sense of this deal.

There should be little doubt that there is more to the take over than Yonghong Li, surely? His worth doesn't even cover the purchase price of Milan, a hedge fund won't lend, even with 11% interest and bunch of other conditions, to someone like that. Not only that, the hedge fund itself will be inheriting a money losing business, so much so that CL alone won't help Milan break even, Milan becoming a money maker hedges on some China market success. Elliot must know more yes.

The only logical explanation to me is that the Chinese do have the money, couldn't get it out of the country in time but were able to convince the hedge fund.

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(04-30-2017, 01:35 AM)Adnanzzz Wrote: [ -> ]The only logical explanation to me is that the Chinese do have the money, couldn't get it out of the country in time but were able to convince the hedge fund.

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This is exactly what I think too.

Maybe they can confiscate name and emblem and trash some money out of it ?

I hope for the club's sake you guys are right.

Quote:Chinese government is heading towards allowing foreign investments again, means that Yonghong Li can go back to his original plan. Yonghong Li's original plan involves several Chinese investors like Huarong, which will contribute to the next capital increase in Milan. Chinese tycoon Jiang Lizhang, who is close to buying a stake in Parma and Crystal Palace, is behind the move of the Chinese government to unblock the investments abroad [Libero]

Thanks to Milan Fans on facebook for translation/news

We rich now y'all !!