AC Milan face UEFA sanctions over Financial Fair Play breach
AC Milan are in danger of being banned from European competition for breaching financial fair play rules after their case was referred to the adjudicatory chamber of UEFA’s club financial control body.
The 18-time Serie A champions have been under the regulatory body’s microscope ever since Chinese investors Rossoneri Sport bought them for more than £600million in April 2017, with the scrutiny increasing when they spent more than £200m on players last summer.
The club had hoped to make a voluntary agreement with UEFA to restructure their finances but that was rejected in December, and the investigatory chamber of the club financial control body [CFCB] has now decided to escalate the matter.
FFP was introduced in 2011 to tackle European football’s chronic debts and overspending. Its central principle is that clubs must “break even”, or spend only what they bring in, although some additional investment from owners or investors is allowed.
The concerns around AC Milan are related to their owners’ ability to repay loans they took out to finance the purchase of the club.
American hedge fund Elliott Management is reported to have loaned Rossoneri Sport, which is fronted by AC Milan president Li Yonghong, more than £250m and these loans must be repaid by October, together with more than £40m of interest.
UEFA said: “After careful examination of all the documentation and explanations provided by the club, the CFCB investigatory chamber considers that the circumstances of the case do not allow the conclusion of a settlement agreement.
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