Cardinale on Americanised Milan, why he sold Tonali, Inter going ‘bankrupt’ | OneFootball

Milan owner Gerry Cardinale insisted he’s not trying to ‘Americanise’ his club but is just trying to take it ‘to the next level’, also calling the act of ‘overspending’ to sign star players ‘the worst thing you can do as an investor‘.

The 57-year-old became the new Rossoneri owner in the summer of 2022, shortly after watching them secure their 19th Serie A title, but he’s now facing harsh criticism for how he conducted the club during the following two seasons.

MILAN, ITALY – DECEMBER 15: General view inside the stadium as fans hold placards for AC Milan’s 125th Anniversary prior to the Serie A match between AC Milan and Genoa at Stadio Giuseppe Meazza on December 15, 2024 in Milan, Italy. (Photo by Marco Luzzani/Getty Images)

However, in a 24-page document which analyses the case of Milan published by the Harvard Business School and including some comments from Cardinale, he defended his plan to make the Diavolo a ‘five billion euros company’ and, in contrast, pointed at Inter as an unsustainable business model, claiming their owners went ‘bankrupt’ after winning the Serie A title.

Cardinale not trying to ‘Americanise Milan’, didn’t need to sell Tonali

“When we bought AC Milan, many American sports team owners called me, saying: ‘You’re crazy.’ They told me, ‘You can’t do business in Italy,’ and ‘It’s impossible to make money in European football.’,” Cardinale comments read, as reported by MilanNews.

“Most people who invest in sports teams do so because they are emotionally involved. They prioritize winning championships above everything else, often making the mistake of thinking that overspending on star players is directly correlated with winning. But that’s the worst thing you can do as an investor.

“I’m not trying to Americanise AC Milan. I’m trying to introduce some American elements that can constructively elevate Milan to the next level.

MILAN, ITALY – DECEMBER 15: Players of AC Milan pose for a photo prior to the Serie A match between AC Milan and Genoa at Stadio Giuseppe Meazza on December 15, 2024 in Milan, Italy. (Photo by Marco Luzzani/Getty Images)

“I’m also focusing more attention on Serie A. I’m curious to see how we can help them negotiate international media deals. In the U.S., there’s a different relationship between team owners and leagues. Here, there are more layers—Serie A, the Italian Football Federation, UEFA, FIFA… That’s the learning curve for me.

“Back home, I could have done all this with my eyes closed.

“Winning championships is obviously an important goal. But you have to balance that with ‘winning smartly.’

“Inter won the Scudetto last year and then went bankrupt (referring to the insolvent former owner, not the club itself). Is that really what we want?

“For the fans, my job is to win the Serie A title every year—I understand that. For my investors, who focus on end-value appreciation, my job is to position AC Milan to compete for the Scudetto every year, qualify for the Champions League every year, and go as far as possible in the Champions League every year.

This is what maximises cash flow and brand value. It’s consistency and reduced performance volatility that maximizes value and, ultimately, longevity.“

One of the decisions that made Cardinale unpopular to the fans during his stewardship was the sale of Sandro Tonali in the summer of 2023, but he insisted that Newcastle’s offer was ‘excellent’ and allowed them to buy ‘six new players’.

“We didn’t sell him to Newcastle United because we needed to—we sold him because we received an excellent offer and conducted a risk-reward assessment,” Cardinale clarified.

“We earned €70m (including bonuses) plus a €10m earn-out, the highest figure ever in Serie A. And thanks to that sale, we bought six new players and completely revamped the squad.

“We don’t sell out of necessity—we sell opportunistically. If we remain disciplined, there will always be market counterparts allowing extraordinary returns for players.”

MILAN, ITALY – DECEMBER 15: Tijjani Reijnders of AC Milan is challenged by Morten Frendrup of Genoa CFC during the Serie A match between AC Milan and Genoa at Stadio Giuseppe Meazza on December 15, 2024 in Milan, Italy. (Photo by Marco Luzzani/Getty Images)

The decision to hire Zlatan Ibrahimovic on Milan’s board sparked doubts and criticism due to his inexperience.

“Most people would consider his appointment a ‘showpiece’ or think of me as an owner obsessed with celebrities,” the owner said.

“It’s the exact opposite: I’m looking for world-class individuals who can make us better.

“With Zlatan, I wanted to establish that we will do things differently because there is a legitimate need for innovation to better manage these assets. So, I hired him for RedBird as an operating partner and as a senior advisor for ownership at Milan.”