Milan could face Financial Fair Play sanctions, as multiple outlets report UEFA will reject their voluntary agreement.
Reports began to emerge last night that European football’s governing body will reject the Rossoneri’s proposal for a FFP settlement.
Corriere dello Sport, Gazzetta dello Sport, and Corriere della Sera are all reporting that the proposal submitted by CEO Marco Fassone will be rejected.
FFP was introduced to limit the losses made by European clubs, but special dispensation can be granted for new owners.
The Diavolo were taken over by Yonghong Li’s consortium in April, and with over €200m of transfer spending in the summer they looked to strike a deal with UEFA.
According to Gazzetta dello Sport, Fassone first submitted a 150 page business plan in June, but projected revenues from China were deemed too high and there was scarce information on a potential stock market flotation.
UEFA therefore invited Milan to withdraw the plan, amend it, and resubmit it in the Autumn.
The document was resubmitted last month, with a reduction in projected Chinese revenues, but the governing body wanted more information about Yonghong Li.
In addition, both Gazzetta and Corriere della Sera report that UEFA were concerned about the loan from Elliott Management, and couldn’t pass a plan unless it is refinanced.
The Rossoneri are currently in talks with Highbridge to do so, but that process will take at least a month more and UEFA weren’t convinced enough to allow the voluntary agreement to pass based on that.
Corriere della Sera further reports that the plans Fassone submitted offer a worst case scenario of a €150m loss for this season.
The FFP regulators wanted guarantees that would be covered, and Li’s consortium have pledged to cover losses with capital increases.
However, UEFA wanted sureties or perhaps even the deposit of the guarantee amount.
Milan will now get no moratorium, so will be sanctioned by UEFA for breaching Financial Fair Play, assuming they qualify for Europe this season.
As pointed out by Gazzetta dello Sport, it would be a bonus for European football’s governing body to have the Rossoneri in the Champions League or Europa League.
That would therefore make the maximum possible sanction, exclusion from European competition, unlikely, but the Diavolo could still face fines, squad limitations and strict controls on spending.
A decision will be made in the spring, when a settlement agreement will be offered to Milan.