MILAN, ITALY – SEPTEMBER 03: Gerry Cardinale of AC Milan looks on before the Serie A match between AC Milan and FC Internazionale at Stadio Giuseppe Meazza on September 03, 2022 in Milan, Italy. (Photo by Marco Luzzani/Getty Images)

Milan owner Gerry Cardinale stressed that he was not trying to “Americanize” his club, just take it “to the next level,” calling the “overspending” on signing star players “the worst thing you can do as an investor.” can do”.‘.

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

However, in a 24-page document published by Harvard Business School that analyzes the Milan case and includes some comments from Cardinale, he defends his plan to turn Diavolo into a “five billion euro company” and points out Contrast this with Inter as an unsustainable business model and claimed their owners had gone “bankrupt” after winning the Serie A title.

Cardinale did not try to “Americanize” Milan and did not need to sell Tonali

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

“Most people who invest in sports teams do so because they are emotionally invested. They prioritize winning championships over everything else and often make the mistake of believing that overspending on star players is directly linked to winning. But that’s the worst thing you can do as an investor.

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

“I am also focusing more on Serie A. I am excited to see how we can help them negotiate international media contracts. In the USA there is a different relationship between team owners and leagues. There are more levels here – Serie A, the Italian Football Federation, UEFA, FIFA… That’s the learning curve for me.

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

“Winning championships is of course an important goal. But you have to balance that with “winning smart.”

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

“For the fans, my job is to win the Serie A title every year – I understand that. For my investors who are focused on adding value, my job is to position AC Milan to compete for the Scudetto every year, qualify for the Champions League every year and in the Champions League every year like that gets as far as possible.

This maximizes cash flow and brand value. It is the consistency and lower performance volatility that maximizes value and ultimately longevity.“

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

“We did not sell him to Newcastle United out of necessity, but because we received an excellent offer and carried out a risk-reward assessment,” Cardinale clarified.

“We earned €70 million (including bonuses) plus €10 million earn-out, the highest amount ever in Serie A. And thanks to this 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 partners who can provide players with exceptional returns.”

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

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

“Exactly the opposite is the case: I’m looking for world-class personalities who can make us better.

“With Zlatan I wanted to make it clear that we will do things differently because there is a legitimate need for innovation to better manage these assets. That’s why I hired him as an operating partner at RedBird and as a senior advisor for property at Milan.”