Supporters of AC Milan leaves the stadium in protest during the Serie A match between AC Milan and ... [+] ACF Fiorentina at Stadio Giuseppe Meazza on September 29, 2019 in Milan, Italy. (Photo by Giuseppe Cottini/NurPhoto via Getty Images)

It was an episode no diehard Serie A fan would ever forget. Two years ago, in a move that shocked the football world, Silvio Berlusconi, Italys infamous former prime minister, revealed that he would be ending his 31-year relationship with AC Milan, one of the most successful clubs in the history of Italian football.

Rossoneri supporters, perhaps too familiar with the businessmans penchant for surprises, buckled their seatbelts and braced for the rollercoaster ride that awaited them. They did not have to wait for long.

Subsequently, the mysterious Li Yonghonga wealthy businessman from the Far Easttook the wheel and propelled the club at breakneck speed, scooping up an array of talented players in a series of highly publicised moves.

But the ride was not without its dips and turns. Soon enough, to the chagrin of Milan supporters everywhere, it was announced that Li would be relinquishing the legendary club to Elliott Management, a vulture fund who are regarded as one of the most fearsome investment companies on the globe.

Fans everywhere were left wondering whether Elliotta relentless group likened to barbary pirates by ex-Obama Administration adviser Steven Rattnerwould change Milan for the better or the worse.

The facts speak for themselves: the firms directorship so far has been underwhelming.

According to La Gazzetta dello Sport, this year Milan reported a record loss of 146m. But thats not all: the team performed so badly in the first few games of the season that Elliott were pressuredreportedly at Berlusconis behest to fire head coach Marco Giampaolo. All this, as Rob Bagchi wrote in The Telegraph, suggests Milan are still lacking a coherent plan.

Others have been blunter. The fund [Elliott] are interested in finding a buyer and making capital gains, not winning games, said Fabrizio Biasin in an article for Il Milanista.

Writing for Panorama, Giovanni Capuano accused Elliott of being so distant that it appears almost disinterested in Milans wellbeing.

Milan deserves respect, he declared. It is not an incubator of capital gains or financial instruments.

If history is any indication, as long as AC Milan remains under Elliotts control, the teams troubles will continue.

Elliott, like other activist investors, acquires stakes in companies that they see as vulnerable or undervalued. It then presses for board representation, using its newfound influence (often bolstered with coordinated press campaigns) to demand changes they believe will maximise the opportunity for an early and profitable exit.

Unlike the running of sports organisations, which requires a great deal of community-spirited fervour and preservation of long-held traditions, activists operate on a purely transactional or business-minded basis, valuing personal enrichment over the long-term interests of the company.

For example, in his book, Vultures Picnic, New York Times bestselling author Greg Palast explained how Elliott, after purchasing several languishing asbestos companies, led a campaign to discredit sickened workers. Palast wrote: The legal, political, and PR attacks on the dying workers chiselled away the compensation expected to be paid by the asbestos companies, boosting the firms net worth.

In 2011 Elliott also bought failed UK retailer Comet for 2 from Kesa Electricals. Thereafter the hedge fund raked in 177m from the deal while almost 7,000 staff members were laid off.

As related in The Telegraph, the counsel representing the former employees said that the liquidation of Comet may properly be described as one of the more regrettable episodes of British corporate history.

More recently, Elliott has sought to intervene in the management of AT&T a decision some, including US presidential candidate Bernie Sanders, say could cost the American telecommunications conglomerate 30,000 jobs.

[Elliott] has a long history of eliminating jobs and union-busting, remarked Sanders.

Jim Hoffa, president of the Teamsters Union International, said: This predatory plan will only serve to deliver short term gain for billionaires while hurting thousands of AT&T workers and their families. We cannot allow this to happen.

Faced with this kind of track record, the Rossoneri have a right to be cautious. For their loyal supporters, Milan are the very cornerstone of their lives, and there is no monetary amount that can put a value on what it means to them. The club is not merely an asset and should be treated accordingly.

With this in mind, its fair to say that owners who arent involved in football as Milans former technical director Umberto Gandini put it will never be able to facilitate the sides long-term success. Supporters have already started to sit up and notice that the owners may not be steering the club towards the direction of success.

A poorly assembled and incoherent squad, continually dire performances on the pitch and the underwhelming appointment of new head Coach Stefano Piolidecisions that have led even the clubs most die-hard Ultras to question the leadership of former club legends Paolo Maldini and Zvonimir Bobanhave made the hashtag ElliotOut a trending topic on social media.

Disappointing player purchases and reports that a salary cap has been introduced in order to cut costs has also attracted the vitriol of those who follow the club.

Factoring in the above, in addition to Elliotts track record in business dealings, surely it is now time to question the ownership of one of Italys biggest and most historic clubs: AC Milan.

More here:
Time To Question The AC Milan Owners - Forbes