The New York Yankees purchased minority stake Italian football champion Milanwhich announced the closing of its latest ownership change on Wednesday.
The Financial Times also reported on Tuesday that Main Street Advisors, a Los Angeles-based fund backed by LeBron Jamesis investing in Milan, and rapper Drake is also set to join the group.
RedBird Capital Partners has completed a deal to acquire a controlling stake in the seven-time European champion for €1.2 billion ($1.2 billion).
It is the second soccer team partially owned by the Yankees after MLS’s New York.
Jerry Cardinale, who founded RedBird in 2014 and is managing partner, announced prior agreement in June to buy Milan from the American company Elliott Management.
Yankees Global Enterprises, the parent company of the baseball team run by the Steinbrenner family, will get about a 10% stake, a person familiar with the negotiations told The Associated Press on Tuesday, speaking on condition of anonymity pending the final deal.
The details of Yanka’s participation in the message are not disclosed.
In 2013, the Yankees agreed to acquire a 20% stake in the New York Major League Soccer team, founded in 2015. City Football Group, Manchester City parent company, is the controlling owner.
“We have a decades-long relationship with the New York Yankees and the Steinbrenner family that has led to the creation of some of the most successful businesses in sports, entertainment and hospitality,” Cardinale said in a statement on Milan’s website.
“We are very excited to continue our partnership with them and will look together for opportunities to expand our fan base and expand the commercial opportunities available only to franchises operating at the highest level of sport around the world.”
The shutdown comes as Cardinale makes his debut as Milan’s new president in Saturday’s derby against city rivals Inter Milan.
“Our vision for Milan is clear: we will support our talented players, coaches and staff to succeed on the pitch and allow our fans to share in the extraordinary experience of this historic club,” Cardinale said.
“We will aim to use our global sports and media network, our analytical expertise, our expertise in sports stadium development and hospitality to achieve one goal: to maintain Milan’s place at the top of European and world football.”
The Yankees, the 27-time World Series champions, are signing a separate marketing deal with AC Milan, the 19-time Italian champions, that will include airing replays of games on the YES Network, as Manchester City does. There will also be cross-merchandising between the pinstripes and Rossoneri.
AC Milan wins its first Italian league title in 11 years.
RedBird also has a stake in Fenway Sports Group, the parent company Liverpool and Boston Red Sox. Champions League rules prohibit two competing clubs from sharing ownership to protect the integrity of the games on the pitch. UEFA will likely have to make a judgment about the extent of RedBird’s influence over decision-making at Liverpool.
RedBird became Milan’s fourth owner in the last five years.
From 1986 to 2017, Milan was owned by former Italian Prime Minister Silvio Berlusconi, who was sold to a company controlled by Sino-Europe Sports Investment Management Changxing Co. American hedge fund Elliott provided financing and took control of the team in 2018 when loan payments were not made.
This is reported by the Associated Press.
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