Municipality Considers Withdrawal of Stadio Over Potential Investigations Involving Inter and Milan
San Siro Stadium Sale Approved by City Council
The city council, led by Mayor Giuseppe Sala, has given the green light to the sale of the iconic San Siro stadium to football clubs Inter and Milan. The sale, amounting to €197,075,590, includes a provision that 50% of the area will remain green, totaling at least 80,000 square meters.
The stadium's capacity has been set at least 70,000 seats, and the entire project must be designed and built to ensure full accessibility and usability for all categories of users. The deep green area, totaling 50,000 square meters, will revert to the ownership of the municipality at the end of the work, with the clubs responsible for maintenance for at least 30 years.
In the event of non-compliance with the legal requirements for the start of work within the specified terms, the contract of sale may be resolved, with the return of the goods to the municipality upon refund of the amount paid up to that date. If investigations prevent the start of work within the first 9 months from the signing, each of the two parties can terminate the contract within the following 30 days by returning the area and receiving a refund of what has already been paid.
The sale price of the stadium to the clubs is broken down, with €73 million paid to the City of Milan upon signing, and the remaining balance paid in installments, guaranteed by bank guarantees or insurance. The proposal includes an "earn out" clause, requiring the buyer to pay the municipality a percentage of profits generated from any third-party sales within the first 5 years from the signing.
In case of investigations by the Milan Public Prosecutor's Office or the Court of Accounts, the teams and the City have committed to meeting to evaluate solutions, protect the effectiveness of the contract, and evaluate the possibility of reaching a contract resolution. Even if the criminal proceeding is found to be unfounded, it could potentially block work or negatively impact the feasibility of the operation.
A request for a "protection shield" for the clubs from potential investigations by the judiciary was presented and accepted by the City on the request of lawyer Alberto Toffoletto of the Nctm firm. However, the name of the lawyer who requested a "protective shield" for the clubs from the office of the Deputy General Director of Palazzo Marino Carmela Francesca is not publicly available.
The city will support up to a maximum of €22 million of the costs related to the removal of the Patroclo tunnel and the decontamination of the area, a reduction compared to the initial €36 million euros. The sale is subject to the right of first refusal in case of transfer to third parties of all or part of the areas at a price equal to or lower than the purchase price.
This significant development in the San Siro stadium's future is set to bring about changes to one of the most iconic football grounds in the world, while ensuring that a significant portion of the area remains green and accessible to all.
