The Corriere della Sera and La7 claim Yonghong Li’s purchase of Milan was “absolutely not transparent, reaching a level that has never been seen before.”
The takeover from Silvio Berlusconi has been analysed by multiple financial experts around the world in recent weeks, including the New York Times and Forbes magazine.
“We have a name, Yonghong Li, but in reality we don’t know if he is the owner of Milan,” said Mario Gerevini of the Corriere della Sera newspaper during an investigative report on La7 show Piazzapulita.
The Corriere della Sera and La7 claim Yonghong Li’s purchase of Milan was “absolutely not transparent, reaching a level that has never been seen before.”
The takeover from Silvio Berlusconi has been analysed by multiple financial experts around the world in recent weeks, including the New York Times and Forbes magazine.
“We have a name, Yonghong Li, but in reality we don’t know if he is the owner of Milan,” said Mario Gerevini of the Corriere della Sera newspaper during an investigative report on La7 show Piazzapulita.
The problems all stem from the €300m loan taken with hedge fund Elliott Management, which was necessary to complete the takeover.
“If you buy a club worth €720m including €220m of debt, and have to take a loan at a rate of 11 per cent, it means you don’t have the money.
“If someone loans you money at 11 per cent, it means you are considered a high-risk case. In fact, Yonghong Li didn’t manage to get the money from the usual channels, like international banks. He had to knock at the door of a hedge fund.
“The money arrived via a series of tours around financial safe havens, loans, guarantees and was absolutely not a transparent operation.
“There are often purchases of clubs that are not particularly transparent, but Milan have reached a new level that had never been seen before.
“Milan is a club that is burning up €50-70m per year. If you start out running at a debt, it’s difficult for you to pay back a loan.”
The Rossoneri patron is currently negotiating a refinancing package, allowing the club to pay back the Elliott Management loan over five years rather than just one, putting the search for new investors in the hands of London-based company Highbridge.
“The risk for Milan is that at the end of the financial year, there is not sufficient evidence that the club can continue operating at this level. If that is the case, and there isn’t a strong majority shareholder who can inject liquidity fast, then the balance sheet cannot be approved.
“The consequences of that would be to bring in the bankruptcy tribunal.”