UEFA have formally rejected Milan’s Financial Fair Play settlement agreement, so there will be a disciplinary hearing in June.
This decision had been in the air for some time, but this evening UEFA turned down the proposal to settle their FFP issues.
It means Milan and their books will now be analysed in depth, a hearing held in June and potentially serious repercussions for the club.
It’s possible they will block the transfer activity, give a hefty fine and potentially even exclude them from the Europa League.
If Milan are excluded from the Europa League group stage, then Atalanta could be bumped up to take their place, with Fiorentina entering the preliminary rounds.
“The Investigatory Chamber of the UEFA Club Financial Control Body (CFCB) has decided to refer Italian club AC Milan to the Adjudicatory Chamber of the CFCB for breach of the Financial Fair Play regulations, in particular the break-even requirement,” read the statement.
“After careful examination of all the documentation and explanations provided by the club, the CFCB Investigatory Chamber considers that the circumstances of the case do not allow the conclusion of a settlement agreement.
“In particular, the CFCB Investigatory Chamber is of the opinion that, among other factors, there remains uncertainties in relation to the refinancing of the loan and the notes to be paid back in October 2018.
“The Adjudicatory Chamber will make a decision on this case in due course.
“The CFCB Investigatory Chamber will further communicate in June its other decisions in relation to the monitoring of the clubs under investigation or under settlement agreement.”
An initial voluntary agreement was already rejected in December and new paperwork was presented, including a 150-page dossier, but this too was not considered enough.
Doubts remain on how Yonghong Li will repay the massive €380m loan (including interest) to hedge fund Elliott Management, which is due in October.