NEWS
Thursday August 3 2017
Report: Bank rejects Milan guarantees

It’s reported Banco BPM has rejected Milan’s guarantees to access financial bonds, so Leonardo Bonucci and Lucas Biglia still can’t be registered.

The Rossoneri signed both players last month for €42m and around €17m, but while their contracts have been deposited with the Lega Serie A, they haven’t been properly registered yet.

CEO Marco Fassone assured that the requisite bonds would be deposited on August 11, but Calcio e Finanza reports that the club is struggling to access funds.

The website reports that Milan approached Banco BPM, one of their sponsors, but the bank refused to issue any guarantees.

It’s common practice for Serie A clubs, whose budgets often run at a deficit, to obtain bonds from banks; offset against assets, future revenues, property or other things.

The problem for the Rossoneri and their owners is that almost all of their assets are collateral for the loan granted by US hedge fund Elliott Management, which effectively financed the takeover.

These are said to include intellectual property rights - i.e trademarks -, next season’s television money and 100 per cent of the company Milan Entertainment S.r.l.

Banco BPM has therefore told the club that they must either remove some of those assets from the Elliott deal and turn them over to BPM, or find an international bank to provide guarantees.

The FIGC’s COMUNICATO UFFICIALE N. 175/A states that any guarantees must come from a company holding an A3 rating with Moody’s, an A- with Standard & Poor’s or a Good rating with Agenzia A.M; or an equivalent rating from other global agencies.

In addition, bonds for transfers completed by July 31 must be deposited by August 11.

Failure to deposit the bonds would not mean Bonucci and Biglia will return to their previous clubs, Juventus and Lazio, but they can’t play until the situation is resolved.

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