Milan could become the 17th club to be denied access to UEFA competition for failing Financial Fair Play tests, joining the likes of Galatasaray and Panathinaikos.
UEFA released a statement this evening confirming the negotiations over a voluntary agreement and settlement agreement had failed and the club will go to a disciplinary hearing next month.
“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.”
Milan now risk seeing being blocked from signing any new players for one or two transfer windows, a massive fine or even exclusion from the Europa League.
They would be the 17th club excluded from UEFA competitions after Financial Fair Play issues, following the likes of Galatasaray in March 2016 and Dnipro, who were penalised just a few months after reaching the Europa League Final.
Red Star Belgrade, Panathinaikos, Sion, Partizan Belgrade, Cluj, Bursaspor, CSKA Moscow and Dinamo Moscow were also among those excluded.
It is an unusual route for UEFA to take, as most big clubs have been able to work out settlement agreements, but the statement makes clear they have serious doubts over the solidity of owner Yonghong Li and above all the repayment of the massive loan to hedge fund Elliott Management.
That is due to be repaid in October and refinancing remains up in the air after months of negotiations.