New York Yankees and Main Street Advisors join RedBird

The baseball franchise of the New York Yankees and a Los Angeles mutual fund invest in the AC Milan together with the American private equity group red birdwhich is about to close the acquisition for a value of 1.2 billion euros of the reigning Italian soccer champions, two people with knowledge of the matter said.

The baseball teamowned by the Steinbrenner family, and Main Street Advisors, the Los Angeles-based fund, which counts among its investors basketball star LeBron James, famed music producer Jimmy Iovine and rapper Drake, will become shareholders of the Serie A team, these people said.

RedBird prepares to announce the entry of its new partners, when it officially takes control of the soccer club from its current owner, US hedge fund Elliott Management, the people said.

The deal, organized by RedBird founder Gerry Cardinale, highlights the continued appetite of US investors to buy into the world’s favorite sport and, above all, teams from the Italian first division.

the yankees are among the biggest brands in sportswith a record 27 Major League Baseball World Series championships. The team has been owned by the Steinbrenner family since 1973when the patriarch, George paid 8.8 million dollars (mdd) for the franchise.

cardinal worked with the New York Yankees for decades, including during his years in Goldman Sachsand advised them and was an early investor in the formation of the team’s regional sports channel, YES Network.

The Yankees will collaborate closely with AC Milan, as Cardinale tries to increase the income of the Italian club and his successes on the court, people familiar with the matter said. Part of the collaboration could include AC Milan programming on YES Network.

Cardinale’s existing business network of high-profile athletes and celebrities helped facilitate the deal with Main Street.

Cardinale, who agreed to take over AC Milan in May, believes that the northern Italian team is a “sleeping giant” and wants to take advantage of Elliott’s turnaround project, which saw the club return to the lucrative UEFA Champions League tournament and got its first league title last season.

Elliott agreed to lend RedBird €600 million to help finance the acquisition.. At 7 percent interest, Cardinale spent the summer talking to potential co-investors to reduce the size of the loan. It is not clear what percentage of the club the Yankees and Main Street will own.

RedBird’s sports investments also include the French football club Toulouse F.C. and a 15 percent interest in the Rajasthan Royalsone of the 10 Indian Premier League cricket franchises, which has now become an economic power in this sport.

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