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Elliott Management, who have tabled a proposal for a minority takeover of Manchester United, are the subject of investigations following the sale of AC Milan to RedBird Capital.
The Peoples Person relayed that Raine Group, the merchant bank acting on behalf of United owners, the Glazers during the takeover process is considering minority offers from the likes of Elliot Investment Management, Ares Management and Corporation, and Sixth Street Partners.
Parties like Elliott Management would allow the Glazers to remain as custodians of the club with significant funds made available to undertake a re-development of Old Trafford as well as oversee investment into the team.
According to Corriere della Sera, there have been searches and seizures at Elliott’s Luxembourg holdings following the sale of AC Milan by Elliott to RedBird on 31 August 2022 for a price of €1.12bn.
Sempremilan reveals, “The judicial police of the Grand Duchy were at the offices of Project RedBlack this morning with a search and seizure order from judge Claude Pascal at the request for judicial assistance from the prosecutors of the Milan prosecutors, Giovanni Polizzi and Giovanna Cavalleri.”
“The crimes of abuse of company assets and fraudulent bankruptcy are alleged against three directors of the company: they are Elliott’s manager, Jean-Marc McLean, and local professionals Daniela Italia and Victor Schuh.”
“Subject to seizure are all paper and digital documents (accounting, banking, board of directors minutes, etc.) attributable to the management of the Milan sale and to the use of the sum collected from the sale.”
Sempremilan points out that similar searches have been carried out at Rossoneri Sport, which is also located in Luxembourg.
Rossoneri Sport is the company that owned 99.9% of Milan and was the recipient of the €1.12bn payment from Redbird. Project RedBlack is the holding company which in turn controls Rossoneri Sport.
Sepremilan adds, “Blue Skye was a minority shareholder (4.3%) of Project RedBlack and considers itself damaged by the sale to RedBird which took place in such a way as to jeopardise its right to credit.”
Elliott were questioned about the controversial investigations into their role in the sale of AC Milan. The investment giants issued a firm statement in response.
“Following the announcement of the sale of AC Milan to RedBird, BlueSkye has initiated a number of frivolous and vexatious litigations in Luxembourg and now New York, which Elliott and co-investor Arena Investors regard as being no more than an attempt to extract value, to which BlueSkye is not entitled.”
The statement further read, “BlueSkye possesses nothing more than a small indirect interest in AC Milan, the vast majority of which is capital controlled and contributed by Arena Investors, who also firmly and publicly condemns BlueSkye’s actions.”
“The transaction with RedBird fully respects that interest, all necessary corporate approvals were obtained at every step of the transaction and BlueSkye will receive all monies to which it is entitled.”
“Elliott and Arena Investors will of course vigorously defend each of their interests against BlueSkye’s frivolous and vexatious actions, and fully expect to prevail.”
It remains to be seen whether these developments affect Elliott’s efforts to acquire a minority stake in United as the Glazer family’s deadline for the submission of third and final proposals edges closer.
That Elliott’s bid is deeply unpopular within the fanbase is indisputable. Supporters have more than made it clear that only a full sale of the club, that would see the end of the Glazer rule at Old Trafford, is palatable.
Amidst fears that Elliott and other like-minded suitors would give the Glazers the opportunity to remain in charge of United, it’s no surprise that such companies are frowned upon by the United faithful.
A full takeover spearheaded by either Sheikh Jassim bin Hamad Al Thani or Sir Jim Ratcliffe remains the most desirable outcome. The two are still the only serious bidders who have gone public with their intentions to buy the club in its entirety.
