June 28 – Any suggestion that UEFA only imposes hard-hitting sanctions on smaller clubs for breaching financial fair rules has been well and truly dashed by the announcement of a one-season European ban on Italian giants AC Milan.
AC Milan had qualified for the group stages of the Europa League after finishing sixth in Serie A but UEFA said the club, which spent £200 million on transfers last summer after a takeover, breached rules around requirements for clubs to break even.
The news came in the wake of the club’s Chinese owner Yonghong Li appearing to have walked away from a €500 million deal with US billionaire Rocco Commisso, owner of the New York Cosmos.
Li acquired AC Milan in April 2017 for about €740 million. The club then went on a player acquisition spree which included bringing in Leonardo Bonucci from Juventus for £35.1 million and Andre Silva from FC Porto for £33.6 million. It was the first time since 2002 the club had broken the £30 million barrier for a player but it landed them in deep trouble with UEFA.
UEFA’s ffp regulations were brought in to stop clubs running up debt and spending far more than they earn. Sanctions for breaching the rules range from warnings and reprimands to points deductions and transfer embargoes.
A UEFA statement said AC Milan “is excluded from participating in the next UEFA club competition for which it would otherwise qualify.”
UEFA said AC Milan had not provided sufficient evidence of its financial stability. But before the verdict, AC Milan released a video on Twitter saying they expected “fairness, rulings based on facts and equal rules for all” from UEFA.
The statement said the club are “ready to pay for the errors made in the past” and “have the utmost respect for the rules, but we expect equality”.
“We invested more than €200 million to open up a new era. A year later, the value of the investment remains unaltered and the value of the squad is the third highest in Serie A.”
Milan will now appeal to the Court of Arbitration for Sport “seeking for a prompt review of the ruling.”
“AC Milan fully trusts the CAS will hear its arguments and will refrain from commenting further pending the arbitration.”
The ban further complicates the future of the club. Commisso has reportedly bid for 70% of AC Milan while the Ricketts family, owner of Major League baseball team Chicago Cubs, are also reported to be interested in long-term investment.
Last week apparently, Li failed to make a €32 million payment to AC Milan, the final part of €120 million he had committed to pay the club as part of his agreement to buy it from former Italian prime minister Silvio Berlusconi. After Li failed to make the final payment, US investment fund Elliott, which helped fund his €740 million acquisition of the club last year, stepped in and paid the money.
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