AC Milan preparing for new UEFA judgment on FFP violations
MILAN (AP) AC Milan is preparing for another hearing before UEFA’s club finance panel next week.
In July, the Court of Arbitration for Sport overturned a ban imposed on the seven-time European champions for overspending.
CAS said the one-year exclusion from European competition was too harsh considering Milan’s recent takeover by U.S.-based hedge fund Elliott Management.
“They do not have a very difficult task,” Milan executive chairman Paolo Scaroni told the Gazzetta dello Sport. “Both parties agree on the fact that in the period between 2014 and 2017 the club infringed the limits of FFP. They must only establish a proportionate sanction.”
Possible new sanctions include limits on player salaries, transfer spending, squad sizes in the Champions League or Europa League and large suspended fines.
When it was initially banned in June, Milan said it failed to break even on soccer-related business in the period from July 2014-June 2017 - before its 2017 spending spree.
For 2017-18, Milan spent more than 200 million euros (then nearly $250 million) on new players. That was despite questions over the financial stability of the Chinese-led consortium that purchased the club from former Italian Prime Minister Silvio Berlusconi for $800 million in April 2017.
Elliott took control of Milan in June after former owner Li Yonghong missed a deadline to repay part of a loan worth more than 300 million euros ($350 million) from the hedge fund. Elliott repossessed the holding company in Luxembourg that Li used to buy Milan.
Scaroni rejected reports that Elliott was seeking a new minority shareholder.
“There are no negotiations - zero - no shareholder in sight nor we are looking for it,” Scaroni said. “Elliott has a broad design to be implemented in three-five years. Firstly, it must create value to eventually disinvest one day.”