The End of Berlusconi's Era; AC Milan Sold to Chinese Consortium

Former Italian Prime Minister Silvio Berlusconi finalized the troubled sale of his football club, AC Milan, to a Chinese consortium on Thursday, April 13. This €740 million deal increases Chinese control over club football in Italy. According to Reuters, this transaction, which is the largest Chinese investment in European football clubs, follows the previous purchase of rival Inter Milan by another Chinese company last year. Additionally, another Chinese company owns the broadcasting rights for Serie A (Italy's top football league). This marks the end of an era for Berlusconi, who bought AC Milan in the 1980s and quickly turned it into one of Europe's best-known football clubs, using it and his television networks to launch his political career. Both parties announced the signing of the final contract in a joint statement on Thursday. The €740 million payment includes €220 million in club debts. The statement mentioned that the buyers ultimately paid €370 million on the day of the transaction and are committed to investing and strengthening the club's financial foundation. A representative of the Chinese consortium told Chinese media: 'Fans have long awaited the return of glorious days to this club. We have taken an important step towards renewal today and will continuously strive to bring this legendary club back to the top of world football.' Berlusconi, now 80, is selling AC Milan because he was unwilling to invest the necessary funds to compete with powerful European clubs, many of which are now owned by wealthy Arab or Chinese owners. Berlusconi stated: 'After more than 30 years, I am relinquishing ownership of AC Milan and stepping down from the presidency of the club. I am very saddened, but I also know that modern football requires investment and resources that a family alone cannot provide.' Berlusconi had agreed to sell the club last August, but the deal faced difficulties, and the review process by the Chinese government, which tightly controls unnecessary foreign contracts and investments, particularly in sports, took longer than expected. Eventually, during this time, an American private equity firm and a Chinese institution helped Berlusconi's company by covering part of its debt until the contract was signed. The exact amount of the loan or debt to the American company has not been disclosed, but a knowledgeable source claims that the financial company from China provided a loan of about €140 million in exchange for shares. AC Milan ranks second in European club championships after Real Madrid but has not won any trophies since 2011 and is currently sixth in the Serie A standings. The club, which lost about €93 million in 2015, needs not only good and expensive players but also new facilities, buildings, and a stadium. AC Milan has not yet disclosed its 2016 accounts, but a knowledgeable source claims it incurred losses between €70 to €80 million. The new owners of AC Milan offered Berlusconi the position of honorary president to remain involved with the club in the future, but he declined this offer.