Police invade Milan headquarters in investigation into sale of the club – 03/12/2024 – Sport

Italian financial police raided Milan’s headquarters on Tuesday (12) as part of an investigation into possible irregularities surrounding its 2022 sale by American hedge fund Elliott Management to private equity group RedBird.

Prosecutors launched their investigation following allegations that Elliott still controls Milan despite its sale to RedBird, according to a search warrant seen by the Financial Times that authorized the raids at the club’s complex in the city’s Portello neighborhood.

The search warrant alleges that the club’s current chief executive, Giorgio Furlani, and his predecessor, Ivan Gazidis, fraudulently withheld information that should have been communicated to the Italian football federation about the club’s shareholding structure.

“It appears that the majority of the funds used to purchase the club came from an investment vehicle that does not belong to RedBird. The suspicion is that Elliott currently maintains effective control of the company,” according to the search warrant.

The warrant also states that Elliott indirectly controls French football club Lille, which prosecutors allege violates rules set by European football’s governing body, UEFA.

Elliott dismissed the allegations as “false”, adding that he has no control over Milan or any stake in the club since its sale two years ago.

“We noted reports this evening that Milan’s current and former CEOs are under investigation in connection with an allegation that the football club is still owned by Elliott and has been hidden from the football federation,” the company said. “This allegation is false.”

RedBird also denied on Tuesday that the hedge fund controls the club.

The allegations are based on filings with the U.S. Securities and Exchange Commission and other documents previously seized by Italian investigators, people close to the investigation said.

Italian financial police also searched the homes of Furlani and Gazidis, according to the warrant, on allegations that they were obstructing Covisoc, the Italian football oversight commission.

A Milan spokesman confirmed the raids and said the club was not involved in the investigation. “The club is cooperating fully with the investigating authority,” the spokesperson said.

RedBird, based in New York, acquired Milan from Elliott less than two years ago for 1.2 billion euros (R$6.5 billion). As part of the deal, Elliott agreed to lend RedBird 600 million euros (R$600 million) through a so-called “vendor loan” to finance the transaction.

RedBird subsequently appointed Furlani as Milan’s chief executive. He long worked as a portfolio manager at Elliott and managed the hedge fund’s football club, founded by Paul Singer. Milan’s current president, Paolo Scaroni, was also appointed by Elliott in 2018. Gordon Singer, Paul’s son, continues to sit on Milan’s board.

The investigation stemmed from a complaint filed by Luxembourg-based former Milan investor Blue Skye, who “raised doubts” about the RedBird deal immediately after the sale, accusing Elliott of a “lack of transparency over the terms of the sale”, said a lawyer. for Blue Skye said on Tuesday.