Milan shareholder Giuseppe La Scala believes owner Yonghong Li is “weak economically and financially, so should negotiate a less painful transition with Elliott.”
The situation is degenerating with multiple reports over the past few days that an investigation has been started into Li’s takeover from Silvio Berlusconi and a letter sent by the club demanding €10m missed its deadline.
Milan shareholder Giuseppe La Scala believes owner Yonghong Li is “weak economically and financially, so should negotiate a less painful transition with Elliott.”
The situation is degenerating with multiple reports over the past few days that an investigation has been started into Li’s takeover from Silvio Berlusconi and a letter sent by the club demanding €10m missed its deadline.
It is increasingly likely that Li will only be able to increase the capital and get that €10m for wages and bills thanks to an additional loan from hedge fund Elliott Management.
“As a shareholder, I only have €300-500 involved, but as a fan it’s only right we understand what it means for Milan having a majority shareholder who right now seems weak economically and financially,” La Scala told MilanNews.it.
“His problem now is not being able to reassure us that he is a stable leader for the club, but more how he is able to give back what Elliott are owed.
“At this point, it seems most likely that Li Yonghong should negotiate a less painful transition with Elliott that will allow him to lose as little money as possible.
“For example, he could step aside with an agreed timetable, Elliott can start running the club and, when Milan are sold again, Elliott could divide some of that excess with Li Yonghong after being repaid the debt plus interest.”
Li was only able to complete the takeover of Milan thanks to a high-interest loan from the U.S. hedge fund.
Elliott have no interest in running the Serie A club, but do wish to get them into the Champions League in order to sell to new buyers at a profit.
Something does appear to have changed at Milan, because while before CEO Marco Fassone and the club rushed to issue denials there were any problems regarding Yonghong Li’s financial stability, they have been remarkably quiet this week.