The Berlusconi effect: How AC Milan became a football superpower


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AC Milan’s achievements of the late 1970s were cast under the shadow of the Totonero match-fixing scandal, when players and officials of several Italian clubs were found guilty of arranging results with an illegal bookmaking syndicate.

Milan, popularly known as the Rossoneri, in 1980 suffered the ignominy of being demoted to Serie B, Italy’s second division, for their involvement.

They returned to the first tier without fuss, cantering through a league clearly below their lofty standards. The enforced relegation, however, had a lasting effect and it wasn’t easy going once they’d reclaimed their seat at the top table.

Come 1986, enter one Silvio Berlusconi, a Milanese who purported to have been born with the club’s blood coursing through his veins, a claim disputed by those who insist he was a boyhood fan of cross-city rivals Inter Milan. Nonetheless, having amassed vast wealth as a TV and media magnate, Berlusconi bought AC Milan on the promise he would breathe new life into the sleeping giant, a phoenix-from-the-flames scenario.

The fanfare as he burst on to the scene was unprecedented, a glitzy scene featuring helicopters, a Wagner soundtrack and a choreographed dance routine. The aircraft landed and emptied out Milan’s players and coaching staff, leaving only the new owner, who tantalised supporters with a powerful speech and a vow of good times ahead. Few would have imagined how true to his word Berlusconi, who died on Monday, turned out to be.

Arrigo Sacchi was brought in as coach and the team was suffused with a fresh intensity, eschewing Italy’s traditional ultra-defensive methodology. As Berlusconi later declared: “We revolutionised this philosophy and Milan became the team that took to the field to dominate, to win, to create chances, to score plenty of goals, to play quality and entertaining football for the fans and to always respect our opponents.”

The players were encouraged to give their all in training, which hitherto had hardly been customary, and their fitness levels and the high defensive line favoured by Sacchi worked wonders, the Serie A title bagged in his first season. Berlusconi from time to time involved himself directly in playing matters and though this was refuted by Sacchi, he described the club’s owner as the man who “started the renaissance of Italian football” and “gave life to Milan”.

Former prime minister of Italy and owner of AC Milan Silvio Berlusconi. AFP
Former prime minister of Italy and owner of AC Milan Silvio Berlusconi. AFP

What Berlusconi certainly gave Milan was investment and ambition. The Netherlands were a dominant force in international football at the time and the spine of their team had a phenomenal impact on the Rossoneri. Marco van Basten and Ruud Gullit (signed for a world record fee) were part of Sacchi’s 1987-88 title-winning side (of Van Basten, Berlusconi said he knew he “would have to use all my powers of conviction and persuasion to make him accept our offer. We all know how it went when he came to Milan”).

Frank Rijkaard then joined from Real Zaragoza that summer. Van Basten, with his clinical decisiveness in front of goal, and Gullit’s leadership skills, directness and ability to run with the ball were hugely influential, but Rijkaard was arguably the final piece of the jigsaw, Sacchi transforming the central defender into a holding midfielder whose aggression and athleticism set the tone for the team’s play. The Dutch trio were far from Milan’s only world-class players yet their collective influence was immeasurable.

True, no Serie A titles followed over the next three years but back-to-back European Cups did, shortly before the format changed to the Champions League. Milan made short work of Steaua Bucharest in the 1989 final in Barcelona, thanks to two goals apiece for Gullit and Van Basten. The following year in Vienna, a tighter game was settled when Rijkaard scorched through the Benfica defence to net the only goal.

The mutual respect that formed the bedrock of the Berlusconi-Sacchi relationship was confirmed when the former spoke fondly of the coach “who had a clear idea of football, who could instil in the players the right mindset, someone who could instil teamwork and set specific objectives to achieve”. Berlusconi had found the right man at the right time.

Dutch master Ruud Gullit at the peak of his powers for AC Milan in a 3-2 Serie A win against Napoli in May 1988. Allsport
Dutch master Ruud Gullit at the peak of his powers for AC Milan in a 3-2 Serie A win against Napoli in May 1988. Allsport

Sacchi left in 1991 to coach the Italian national team and was replaced by Fabio Capello at Berlusconi’s behest. Capello had coached AC Milan’s youth teams and overseen the rise of Paolo Maldini and Alessandro Costacurta, by this time regular fixtures in the first team. If anything, Milan grew in strength under Capello and the seamless switch of managers saw them sweep to the 1991-92 Serie A title undefeated, scoring a barrowload of goals.

They retained the league title not once but twice, swatting aside the domestic opposition with a ruthless swagger. But the perfect storm surely came on the night of May 18, 1994. The Champions League final had pitted Milan against Barcelona, managed by the great Johan Cruyff. Most analysts foresaw an even game of contrasting styles but instead Milan ripped their opponents to ribbons, delivering a footballing masterclass. When Marcel Desailly crashed home Milan’s fourth on the hour mark, they could afford to take their foot off the gas, job done. The 4-0 destruction still goes down as one of European football’s greatest displays.

Capello’s men again won Serie A in 1995-96 but some stale years followed as the team underwent an overhaul. The title was clinched under Alberto Zaccheroni in 1998-99 but Milan didn’t regain their true stature until Carlo Ancelotti took the reins, winning the 2003 Champions League somewhat fortuitously in a penalty shoot-out against Juventus, then Serie A the following season. They reached the European summit once more, Ancelotti guiding them to victory over Liverpool in Athens in 2007, and won the domestic league in 2010-11 under Max Allegri, with some relatively turgid performances between. By this stage the glory days were perhaps over, but what glory days they were. Berlusconi sold his stake in AC Milan to Chinese investors in June 2017 for $630 million and became owner of Monza, now a Serie A side, a year later.

Thanks to Milan’s victories, I am the most successful president in the history of world football
Silvio Berlusconi

It is tricky to calibrate Berlusconi’s role in all this but he had the foresight to hire Sacchi, Capello and Ancelotti, “the only three coaches I could fully work with, in total harmony, both for Milan’s philosophy and style of play, and for the starting XI they would pick every Sunday and which they would discuss with me before every game”. Sacchi himself spoke of Berlusconi as a visionary.

Looking at the characteristics of today’s super clubs, such as Real Madrid or Manchester United, they have enormous wealth, a pulling power, a magnetism that draws a fan base sprawled around the world. Milan had that in the early 1990s, people wanted to watch them, not only their fans but a wider football public.

Ancelotti, who has gone on to become one of the most successful coaches in history, has said Berlusconi “will be impossible to match” and told of when he rang Milan’s president and begged: “Buy me [Alessandro] Nesta and we’ll win the Champions League.” Berlusconi did and Milan duly obliged.

Much can be said of Berlusconi and his antics as Italy’s prime minister and the controversy that seemed to follow his every step. But those initial years of his ownership, especially from 1988-1996, bore the rise of football’s first super club. As he himself said: “Thanks to Milan’s victories, I am the most successful president in the history of world football.” It’s difficult to dispute that.

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Memory: 64/256GB storage; 8GB RAM

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Gulf Men's League final

Dubai Hurricanes 24-12 Abu Dhabi Harlequins

5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

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Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

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Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction. 

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

The story in numbers

18

This is how many recognised sects Lebanon is home to, along with about four million citizens

450,000

More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps

1.5 million

There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m

73

The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association

18,000

The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme

77,400

The number of people believed to be affected by the current nationality law, according to the 2009 UN study

4,926

This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee

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UAE currency: the story behind the money in your pockets

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Benefits of first-time home buyers' scheme
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  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
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Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

360Vuz PROFILE

Date started: January 2017
Founder: Khaled Zaatarah 
Based: Dubai and Los Angeles
Sector: Technology 
Size: 21 employees
Funding: $7 million 
Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin

War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

SERIE A FIXTURES

Friday (UAE kick-off times)

Sassuolo v Bologna (11.45pm)

Saturday

Brescia v Torino (6pm)

Inter Milan v Verona (9pm)

Napoli v Genoa (11.45pm)

Sunday

Cagliari v Verona (3.30pm)

Udinese v SPAL (6pm)

Sampdoria v Atalanta (6pm)

Lazio v Lecce (6pm)

Parma v Roma (9pm)

Juventus v Milan (11.45pm)

 

Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

MATCH INFO

Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)

Updated: June 12, 2023, 1:47 PM