The AC Milan takeover that never was: how Silvio Berlusconi's change of heart reshaped everything for Mr Bee

Exclusive interview: Mr Bee Taechaubol tells The Independent how close he came to buying a 48 per cent stake in the Italian club and why he wasn't able to follow it through

After the deal with Mr Bee fell through, Silvio Berlusconi eventually sold AC Milan to Li Yonghong (Getty)

Buying one of the biggest football teams in the world is not easy. It takes plenty of money, patience and luck. Thai investor Mr Bee Taechaubol came closer than most in 2015, when he had a deal with Silvio Berlusconi to buy 48 per cent of AC Milan. But it fell apart when Berlusconi, recovering from a heart attack, decided he wanted to give up a 100 per cent stake instead. Milan were sold to Chinese investor Li Yonghong this April instead.

Just over two years on from when he shook hands with Berlusconi outside the Park Hyatt Hotel in Milan to mark an investment that never happened, Mr Bee spoke to The Independent at more length than ever before about how he came so close to owning one of the biggest clubs in world football, and why it went wrong.

In 2014 Milan were down on their luck. They had not won Serie A since 2011, a run that continues to this day, and they needed an injection of new money and energy. But Bee knew that they still had a global projection few clubs could match.

“I was speaking to several banks who explained to me about club credit cards, of Manchester United, Barcelona, Real Madrid and Milan.” Bee tells The Independent. “The amount of people who asked for Real Madrid and Man United did not reach the same amount as Milan, they had a huge fan-base.”

Bee had investments in China, and a new eight-year deal with the Chinese education ministry to help provide European coaches to improve football education in Chinese schools. He saw that there was a perfect opportunity to use Milan’s name to generate interest in Asia. “I was asked if I would be interested in Milan, and considering the plans I was going to have in China, the answer was yes,” Bee says. “Milan is the number one recognised team in Europe, and the first team to go and play in China when the country opened up. With the partnerships I had in China, we would expand the fanbase and engage the fans more.”

Berlusconi first met Bee in December 2014, found him receptive to Asian investment, and the pair got on fast. “Actually he was very, very straight-forward,” Bee says. “He is a man of his words.” Despite his reputation being otherwise? “I can understand that, but he is very smart, a very good strategist. Actually very straight-forward and easy to speak to. As long as you’re frank with him, he’s very supportive.”

Silvio Berlusconi decided to give up a 100 per cent stake in AC Milan after suffering a heart attack (Getty)

It was 1986 when Berlusconi bought Milan and so naturally considered keeping hold of the club he had spent nearly 30 years building up. “He actually had a change of heart and said he couldn’t,” Bee remembers. “He explained in this world there are two things he cannot do: sell his villa in Arcore, and sell AC Milan.”

Bee’s initial offer was for 51 per cent but because Berlusconi was reluctant to give up majority shareholder status, Bee decided to go for 48 per cent instead. Bee and Berlusconi famously met at a hotel on 1 May 2015 to agree the deal.

“The president didn’t have the heart to part with Milan,” Bee says, “he didn’t want to sell a majority, didn’t want to give up control on something he had built up for 30 years. Our offer was 48 per cent, and we came and stood in front of hotel, and Berlusconi said he had chosen to go with me.”

Mr Bee was reluctant to takeover at AC Milan without an Italian partner (Getty)

The deal valued Milan at €500m and the debt financing was provided by Chinese bank Citic International. But in September 2015, one week before closing, the deal was thrown into turmoil when Citic told Bee that he would have to partner with a Chinese fund too: either Suning, Fosun or Citic International, who had all been Bee’s rivals in the bidding for Milan. Bee was not impressed.

“After the bank imposed the new condition, we were flying around talking to these Chinese companies,” Bee remembers. “It took a while and I thought it was a waste of time doing that, it didn’t make sense. We were speaking to people who were trying to do the deal too themselves.” Suning now own Internazionale, Fosun own Wolverhampton Wanderers and Citic have a stake in Manchester City’s City Football Group.

Bee had to go and find the funding from elsewhere, as 2015 turned into 2016, but Berlusconi told him he had more time. Bee was successful, the money was ready to be transferred and he was about to fly from Bangkok to Milan, with his financers, to complete the deal. But the meeting was postponed.

Disaster struck in June 2016 when Berlusconi had a heart attack and needed surgery on a defective aortic valve. Suddenly he did not want to own 52 per cent of Milan anymore. He wanted rid of all of it.

Mr Bee Taechaubol (left) at a Global Legend Series in Kuala Lumpur, 2014 (Getty)

“His children recommended he needed rest, both from politics and from football,” Bee says. “His people said he only wanted to sell 100 per cent.”

Bee could have taken over but decided he did not want to be responsible for stripping Milan of Italian ownership. “I discussed it with the funds that we were coming in with me, the decision was mine but I actually recommended not to,” he says. “I don’t think it makes sense for a foreigner, at somewhere the size of Milan, to not have a strong Italian partner. And Berlusconi is as strong as they come as an Italian partner. Without him I don’t think it would make sense to do it, the risk would be too great.”

Berlusconi first bought AC Milan in 1986 (Getty)

Having to pull out was a crushing blow for Bee who had already drawn up his detailed plans for Milan and their Asian expansion, including an IPO in Hong Kong. “I was absolutely disappointed,” Bee says. “Personally I was looking forward to working there. Everybody around me getting involved in the deal was so disappointed. There were 40 people in three countries working on this for three years.”

Of course, AC Milan is such a marketable asset that eventually the Berlusconi did find other foreign investors to buy the whole 100 per cent. It was Chinese investor Li who produced the money, with €300m of help from London-based hedge fund Elliott Advisors. The deal was completed in April this year.

AC Milan was eventually bought by Li Yonghong in April (Getty)

There is no bitterness from Bee even if he does regret that it is now in fully foreign ownership. “It is not something I would do for the reason I explained, but they have their own reasoning,” Bee says. “I have to hand it to Mr Li, he has done a tremendous job getting the deal closed. It is not an easy deal to do. It is very commendable to get that money in such a short time.”

Bee just hopes that Li’s Milan will not lose what made them so popular and important in the first place. “AC Milan will always be AC Milan,” he says. “Winning is in their blood. It is more about how respectful the owners are of the Italian culture and brand. With the right strategy, they will return to the top.”