- Nov 29, 2004
- 36,233
- 115,160
The consortium that took over the club don't actually have enough money. That's one of the reasons the takeover took so long is because when it came to actually pay up, they didn't have the money they'd agreed on. In a last minute desperate attempt to get the cash together, they borrowed a huge amount of money from a particularly unsavory American hedge fund, who basically specialise in lending money to desperate people who can't afford it, with a massive interest rate to whom they have a fixed deadline to repay the money.
So in short, the money that they've used to buy the club and then splash out on lots of players this summer is all borrowed money at an extortionate interest rate that they have to pay back very quickly or the whole thing blows up. Not sure exactly what happens then but I would assume that the hedge fund would take over the club and strip it down to get their money. The only way I can see this not ending badly is if Milan suddenly become the dominant force in world football and start generating the kind of revenue Man Utd or Real Madrid make. But somehow I doubt that's about to happen any time soon.
Like I say, disaster waiting to happen. It's like being given a multi-million pound mortage that you can't afford. It's all rosy for a couple of weeks when you're sitting in your huge mansion smoking cigars and drinking brandy, but once your first couple of repayments kick in you're fucked.
Basically how the last recession started.