RedBird Considers IPO for New AC Milan Holding Company

Investment firm RedBird Capital has established a new company to hold the AC Milan football club and its other investments in Milan, Italy. The company's founder, Gerry Cardinale, is preparing for a potential stock market listing for this new entity in the future.

Cardinale has founded Milan Sports & Entertainment to hold the Italian football club AC Milan, as well as other businesses planned in Milan. This includes the company's stake in a new stadium with a capacity of 71,500, which will be jointly built by AC Milan and its city rival, FC Internazionale.

In the long term, this new entity may go public.

Cardinale stated, "This is by no means a must-do, but I have considered this while designing the company structure."

He also emphasized that RedBird plans to hold these assets for the long term. Currently, the total value of these assets is in the low single-digit billions of dollars.

Founded in 2014, RedBird currently manages assets exceeding $21 billion. The firm supported Paramount's acquisition of Warner Bros. Discovery but failed to acquire the UK’s Daily Telegraph. In September this year, RedBird agreed to acquire a majority stake in the news commentary platform Puck at a valuation of $250 million. {#quote_WMG}

This move by RedBird highlights how investors are further commercializing sports assets by expanding investments in real estate, hotels, and other business sectors to diversify and enhance revenue streams.

Cardinale remarked, "Milan is currently the hottest city in Europe and the center of the fashion industry. The ability to combine sports, Hollywood, and the fashion industry will be a key direction for RedBird."

RedBird has appointed American sports executive Brett Yormark as CEO of Milan Sports & Entertainment. Yormark will step down as the chair of the Big 12 Conference in late January 2027.

Milan Sports & Entertainment will also serve as a vehicle for RedBird to achieve another ambitious investment: acquiring a basketball team based in Milan and allowing it to participate in the new league NBA Europe, which is planned by the North American National Basketball Association (NBA).

Cardinale plans to build a basketball arena with a capacity of 20,000 in eastern Milan if the acquisition is successful.

In addition to the NBA Europe basketball arena, Cardinale also mentioned that RedBird might build a venue and supporting facilities for hosting high-level tennis events.

His vision is to create a "Flushing Meadows" for Milan, akin to the venue in New York that hosts the US Open, by constructing a brand new tennis center.

Building on RedBird's investments in the sports industry, Cardinale also plans to create a new hospitality and merchandise sales company, emulating the successful model of the American sports merchandise and services company Legends Hospitality, which he co-founded during his time at Goldman Sachs. {#quote_GS}

He stated, "It can be said that Europe is about 20 years behind the US in this regard, but there are huge development opportunities here, and these opportunities will not disappear. With the growth of streaming and the globalization of media rights, this trend will only accelerate further.