AC Milan's owner, Gerry Cardinale, has recently voiced his concerns regarding the financial disparities between Serie A and the English Premier League, stating that the true competition for AC Milan lies not within Italy, but in England. Cardinale, founder of RedBird Capital, which acquired AC Milan in 2022, has been vocal about addressing the imbalance of power in European football.
Cardinale highlighted the Premier League's massive television revenue, which is almost four times that of other European leagues, calling it an "economic black hole" that drains wealth from the continent. He emphasized that while Serie A is highly competitive, with any team capable of defeating another on any given day, this competitiveness isn't adequately rewarded financially. He noted the difficulty in securing significant deals for international rights, as distributors often prioritize "the best," contributing to phenomena like theSuper League. Cardinale pointed out that in the United States, for example, matches between smaller Serie A teams generate little interest, which poses a problem because competition, while central to sports, lacks financial reward in the current structure.
Since acquiring the club from Elliott Management, Cardinale has been pushing for a model of reinvestment and sustainability rather than focusing solely on profit-making. He stated that for the first time in 17 years, AC Milan has been cash flow positive for three consecutive years, and this money is reinvested into the team. This commitment was demonstrated during the summer transfer window, where Milan's spending surpassed that of any other Serie A team.
A key component of Cardinale's long-term financial strategy is the construction of a new stadium to replace the aging San Siro, which AC Milan currently shares with Inter. This new venue is expected to significantly boost matchday revenue, corporate partnerships, and global visibility, ultimately elevating AC Milan's financial profile to a level where it can compete with Premier League clubs. Cardinale aims to share this model with other Serie A teams, viewing them not as rivals, but as potential partners in bridging the financial gap with the English league.
Cardinale addressed his earlier statement about wanting to be "Berlusconi 2.0," clarifying that his intention was to innovate, similar to how Silvio Berlusconi transformed AC Milan and George Steinbrenner revolutionized the New York Yankees. However, he acknowledged that the landscape of modern football, with its soaring costs and the presence of sovereign wealth funds and billionaires, necessitates a different approach.
Despite the challenges, Cardinale remains committed to his vision of transforming AC Milan into a global economic force capable of competing with the Premier League. He recognizes the difficulties in implementing change within the existing ecosystem but views this resistance as part of the investment thesis. He received the Leonardo Da Vinci Niaf Prize for Finance in Washington, with US President Joe Biden in attendance.
