NEWS
Thursday November 9 2017
Milan to submit FFP plans

Milan will today submit their proposal for a Financial Fair Play settlement to UEFA in Nyon.

The Rossoneri were taken over by a Chinese consortium in January, and as a result they have the opportunity to extend their FFP responsibilities over four years, to give the new investors time.

However, they must still submit realistic plans to become profitable or face sanctions from European football’s governing body.

The Diavolo are the first European club to apply for such an agreement, and CEO Marco Fassone will submit the plans in Nyon today.

Gazzetta dello Sport expects that as a result UEFA will be cautious with the proposals, as Milan will become seen as an example to point to regarding this aspect of FFP.

Nonetheless, the 150 page documents which will be submitted today does see the Rossoneri fall within the rule that the difference between revenue and outgoings must be less than €30m.

The revised plans show a negative of €26m on that score, compared to the accounts which were submitted and then withdrawn in June.

That plan was seen as being overly ambitious, with forecasts of a tripling in revenue produced by the Chinese market.

Now the plans show a more modest income from China of €30-40m by the end of June 2018, the end of the financial year.

UEFA are also likely to be encouraged by the fact that the document shows a number of scenarios to balance the books, with Plan A being Champions League qualification, Plan B Europa League and so on.

European football’s governing body will have until just before Christmas to respond to the plans, but it’s expected to act much more quickly than that.

There is cautious optimism that the plans will be accepted, but Milan could also be fined a maximum of €20m if they’re deemed to have breached Financial Fair Play rules.

Gazzetta believes the new owners would look to share that fine with previous owners Fininvest, though it’s not clear if Silvio Berlusconi, the former President, would actually be willing to do that.

There is also optimism about paying back the loan from Elliott Management, due in October.

It’s expected the Chinese ownership will take out a bigger bank loan, but one which can be repaid by 2023 to pay the hedge fund.

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