Breaking Down the Vital Information of AC Milan's Potential China Sale

Of the innumerable dramas surrounding AC Milan over the last year, none has had more twists and turns—or been more important to the future of the club—than Silvio Berlusconi's quest for a cash infusion.

Berlusconi finally gave in last year and began to seek investment from outside his Fininvest holding company.  It had been long needed.  

Berlusconi's daughter, Marina, chairman of Fininvest, cut Milan off financially in 2010, slashing her father's intended transfer budget by half.  The Rossoneri won the Scudetto the next season, but soon began a cycle of selling their top players like Zlatan Ibrahimovic and Thiago Silva and replacing them with cut-rate players.

In August 2015, Berlusconi reached a deal with Thai businessman Bee Taechaubol for a 48 percent stake in the club, with Mr. Bee, as he is known, pumping €480 million into Milan's accounts.  

However, the deal has been beset with delays, and now it seems like Berlusconi has moved on—and the new investors are much more likely to complete things than Taechaubol was.

Two weeks ago, La Gazzetta dello Sport reported (h/t Football Italia) Taechaubol had been overtaken by a new group of investors from China.  Within a day of that report, both Bloomberg and Sky claimed (h/t Football Italia) that negotiations were in an advanced stage.

Flavio Lo Scalzo/Associated Press

There are some major differences between this bid and the Taechaubol deal that must now be considered failed.  

The first—and perhaps most important—is the nature of the parties.  Mr. Bee is a broker.  He's not independently wealthy.  Forbes' Mike Ozanian reported last year that his businesses had a yearly revenue of about $100 million.  In 2013, he told The Worldfolio: "It isn't like I have THB10 billion (according to X-Rates.com slightly less than $286 million) of cash lying around, but I know where to get it."

This was the major weakness of Taechaubol's bid.  He couldn't make the purchase himself—he had to rally a number of investors around him, and his failure to do that resulted in the delays that ultimately scuppered his bid.

The identities of the members of this Chinese consortium have not been revealed, but Il Giornale reported (h/t Football Italia) that it's led by Robin Li, one of the richest men in China.  

La Repubblica put forward another name (h/t Football Italia), Jack Ma, the founder of the Alibaba group and one of the richest men in the world.  Media outlet Agenzia Giornalistica Italia (h/t Football Italia) have since played down that rumor, but it's clear that whoever is behind this group has real money.

The second big difference is in valuation.  The Taechaubol deal was based on a valuation of the club at €1 billion, but the aforementioned Bloomberg and Sky reports say that the Chinese group values Milan at much less.  Their figure is €650 million, less even than Forbes' valuation of the club, which is €775 million.

The final major difference is just how much of the team will change hands.  Mr. Bee was content to buy a 48 percent stake, meaning Berlusconi would still be majority owner—and retain decision-making power. The new investors, however, will likely insist on a majority share, something Berlusconi is still considering.

Antonio Calanni/Associated Press

Multiple reports from Corriere della Sera (h/t Football Italia) and La Reppublica (h/t Football Italia) have claimed that negotiations have been delayed due to Berlusconi's doubts about giving up control.  

A report from CalcioNews24 (h/t Football Italia) claims that he is trying to insert an unorthodox clause into the sale making him a honorary president and a technical consultant, giving him some control of transfers and other decisions.

This is going to be the main sticking point here.  Milan is Berlucsoni's baby.  He grew up a fan of the Rossoneri and, for all his meddling, he cares deeply about the club.  

His sentimentality has got the better of him before.  In September, he torpedoed plans to build a new stadium, partly due to money arguments with the owners of the intended site and partly because he pined too much for the San Siro.

Berlusconi may yet refuse to let go, but it's best for the club if he does.  Juventus are the economic powerhouse of Italy, but this deal could put Milan on equal footing with the Bianconeri in that regard, and may even vault them back into the economic elite of Europe as a whole, depending on how willing these new investors could be to spend.

We won't have to wait long to find out whether or not this move will go through.  According to Corriere della Sera, (h/t Football Italia) Fininvest is putting together a report about the investors—who are already doing their due diligence on Milan's books—for Berlusconi's evaluation, and a decision will come from the former Italian prime minister by Wednesday.

Milan certainly won't be vaulting over the likes of Juve, Napoli or AS Roma anytime soon without a major financial change.  It's become clear that Berlusconi can no longer keep Milan in the elite on his own anymore, both because he can't spend the money he used to and because his own decisions keep holding the club back.

If he makes this deal, though, Milan's rebuilding project could get fast-tracked.  It's beneficial for the club, and it should happen.  If it doesn't, the Rossoneri will simply keep spinning their wheels.