Italian prosecutors are looking into an allegation of embezzlement around RedBird Capital’s takeover of AC Milan.
An initial complaint was brought by Blue Skye, a Luxembourg-based investment firm with minority stake in the club, which alleges there was financial misappropriation during last summer’s takeover of the Serie A giants.
The Guardia di Finanza’s special currency unit are now looking into the matter and acquiring documents relating to the takeover. Italy’s tax police said that no individuals have been named in connection with the investigation. RedBird Capital, who also have a minor stake in Premier League giants Liverpool, have not commented.
Blue Skye, which owns about 4%, filed an appeal with Milan’s Civil Court last September that attempted to block the sale of the club – only for it to have already been completed.
At the time, Blue Skye alleged that they had not “been able to obtain any information on the sale, in which they were directly interested” and referred to the takeover being an “opaque” operation.
They blamed previous owners Elliott Investment Management of engaging in negotiations “behind closed doors”, thus denying Blue Skye a seat at the table. At the time Elliott said those allegations were “frivolous and vexatious.”
Blue Skye’s appeal was withdrawn after an acceptance that the takeover was finalised.
The US-based firm, which is run by Gerry Cardinale, completed their purchase of Milan on August 31 in a deal worth €1.2bn that also saw the owners of the New York Yankees purchase a minority stake.
Red Bird’s Liverpool shares come via their investment in Fenway Sports Group. They also own Ligue 1 side Toulouse and Indian Premier League cricket franchise Rajasthan Royals.
“Our vision for Milan is clear: we will support our talented players, coaches and staff to deliver success on the pitch and allow our fans to share in the extraordinary experiences of this historic club,” Cardinale said upon completion of the deal in August.
“We will look to leverage our global sports and media network, our analytics expertise, our track record in sports stadium developments and hospitality to deliver one goal – maintaining Milan’s place at the summit of European and world football.”
Milan presently sit second in Serie A, 12 points behind Napoli at the midway point, having won the title last season for the first time in 11 years. They will face Tottenham Hotspur in the Champions League round of 16 next month.
