Italy's AC Milan was bought by Chinese consortium in a deal worth $825.8 million. (Photo : Reuters)
Former Italian Prime Minister Silvio Berlusconi's family holding company, Fininvest SpA said on Friday, Aug. 5, that it has come to an agreement with a group of Chinese investors who are keen on buying Italian football club AC Milan. The deal values the club at €740 million ($825.8 million).
The deal comes just two months after the Chinese retail giant Suning Commerce Group Co. announced that it will be spending around €270 million to claim about 70% of Inter Milan which happens to be AC Milan's arch-rival. On the same day English Premier League club West Brom was bought by a group of Chinese companies, BBC reported. In recent times English Clubs like Wolves and Aston Villa have also been bought by different Chinese consortiums.
In recent year Chinese investors have shown a keen interest in European football. These growing investments are a direct result of the encouragement received from Chinese President Xi Jinping, who has time and again expressed his hope that China wins the World Cup someday. Since Xi's rise to power in 2012, Chinese businessmen have taken over many football-related companies and big-name players, mostly by paying well over the market-price.
AC Milan's prospective owners belong to Sino-Europe Sports Investment Management Changxing Co., which also includes Haixia Capital -- a Chinese state-owned development fund. Under the preliminary contract, the Chinese investors are expected to undertake a capital increase and "cash infusion worth of €350 million" over a period of three years, The Wall Street Journal reported. The contract is expected to be completed this year.
Founded in 1899, AC Milan is one of the most prestigious clubs in Italy. The club has won 18 Serie A and seven UEFA Champions League titles. Its European Championship wins are the most by any club after Spain's Real Madrid which tops the list.
AC Milan has been at the helm of Berlusconi since 1986. He had acquired the club while it was on the verge of bankruptcy and restored it to a world-class level. Within four years, the club won two consecutive European Cups. But the team has been struggling to make a mark in domestic league off lately.
