RedBird Capital Partners has reportedly finalized a deal to purchase AC Milan, valuing the Italian soccer club at $1.3 billion, according to Bloomberg. 

The New York-based private investment firm, which has $6 billion in assets under management, won its bid for the Serie A club over Investcorp — the Middle East’s largest alternative assets manager. Current owner Elliot Management will still keep a minority stake. 

Investcorp, which has $41 billion in assets under management, was once in exclusive talks to buy AC Milan from Elliot, but failed to reach a deal before the end of an exclusivity period in April. 

• AC Milan is currently the 14th-most-valuable soccer team in the world, per Forbes.
• The club won its 19th Serie A title in the 2021-22 season.
• It has generated $257 million in revenue in 2022, up from $165 million in 2021.

AC Milan is also in the process of receiving approval to build a new stadium to replace the historic Giuseppe Meazza Stadium at San Siro. The potential project, led by architectural design firm Populous, is estimated to cost $733 million.

Milan’s city council has ordered a public debate to take place for plans to be approved.

Sports Investments

AC Milan adds to a growing portfolio of sports-related investments for RedBird.

The firm holds a stake in Fenway Sports Group — owner of Liverpool, the Boston Red Sox, and Pittsburgh Penguins — and is also an investor in Toulouse FC, the XFL, and the IPL’s Rajasthan Royals.

Activision Blizzard allowed esports teams to defer payments for two years, and the debts to the company have piled up to a huge sum.

Franchises in the Overwatch and Call of Duty leagues collectively owe the gaming giant between $390 million and $420 million, according to The Jacob Wolf Report.

• Call of Duty League teams owe an average of $22.5 million.
• The cost of admission into the league is reportedly $25 million, but teams only made initial $2.5 million payments in 2020, with the remainder deferred. 
• The 20 Overwatch League franchises owe around $6 million to $7.5 million each. The franchise price for the league is around $16 million, with teams having already chipped in $7.5 million to $10 million.

Bored Board

Meanwhile, Activision Blizzard’s board of directors is taking heat from shareholder SOC Investment Group. SOC called for six board members, including CEO Bobby Kotick, to be removed in a letter on May 27.

SOC charged that the board members allowed “unsafe workplaces exhibiting frequent and repeated sexual harassment, sexual assault, and gender discrimination” and did not address those issues following a lawsuit from the California Department of Fair Employment and Housing.

“While shareholders await the assessment of the [$68 billion] merger with Microsoft by antitrust regulators, it is incumbent upon them to hold these current directors accountable for their multiple failures to act and the resulting reputational harm and declining share price,” SOC wrote.

Activision Blizzard disputed SOC’s claims, saying that the investor made “blatant misrepresentations,” and citing new policies including a zero-tolerance harassment policy.

There was plenty of drama at Saturday’s UEFA Champions League final, much of it off the pitch.

Prior to Real Madrid’s 1-0 victory over Liverpool at the Stade de France, fans trying to force their way into the stadium area caused the match to be delayed by half an hour. French police tear-gassed fans, including children.

The unrest triggered a dispute between higher-ups.

• French interior minister Gerald Darmanin blamed the event on “massive fraud on an industrial scale,” claiming that fans were issued “30,000 to 40,000 fake tickets.”
• French sports minister Amelie Oudea-Castera specifically blamed Liverpool backers without valid tickets, saying the club let its fans “out in the wild.”
• Liverpool chairman Tom Werner expressed outrage at Oudea-Castera’s “unproven pronouncements,” saying the events surrounding the match “were not only incredibly dangerous for all who attended, but raised serious questions about the organization and operation of the event.”

UEFA said on Monday it has commissioned an independent report on the incident and will publicize its findings when completed.

Most Valuable Victory

While the Champions League final certainly drew the most attention of any soccer match over the weekend, the stakes were arguably higher for the game between Nottingham Forest and Huddersfield Town on Sunday.

Forest will be promoted to the English Premier League from the English Football League Championship, following its victory. That makes the game worth an estimated $214.3 million over the next three years. Real Madrid took home $22.7 million for winning the Champions League.