NEWS
Sunday March 26 2017
Berlusconi stays as Milan President

The closing is set for April 14 with new US funds via Luxembourg, but Milan are expected to retain Silvio Berlusconi as Honorary President.

On Saturday there was a breakthrough in the takeover of the club that has been dragging on for almost a year.

Yonghong Li announced that Sino-Europe Sports was closing down, replaced by Rossoneri Sport Investment Lux, a holding company based in Luxembourg and therefore more able to circumvent limits on exporting funds from China.

Crucially, it will also be funded by loans from a US hedge fund, Elliot Management Corporation, and London-based Blue Skye, believed to be worth €320m.

According to Il Sole 24 Ore (the Italian Financial Times), Elliot will pay up €123m for Milan, plus €50m for the summer transfer market.

If Yonghong Li fails to meet the repayments, which include a 10 per cent tax, then Elliot can repossess the Chinese broker’s assets.

It’s believed the operation will be funnelled through another Luxembourg company created for the occasion, RedBlack Sarl.

La Gazzetta dello Sport claims that Yonghong Li is not alone in this, as Huarong Asset Management – who were involved from the beginning – will enter the fray only after the closing.

This is to avoid condemnation by the Chinese Government, who disapproved of the operation to buy Milan.

The same sports paper also insists it has an early draft of the future Board of Directors, including Berlusconi as Honorary President.

Yonghong Li would be executive vice-president, Marco Fassone general manager and Massimiliano Mirabelli director of sport.

Also on the board would be Chinese counsellors Han Li and Lu Bo, who is at the helm of Haixia.