AC Milan declared bankrupt; president and owner deny claim

Add as a preferred source on Google

Bengaluru, February 21: While matters on the pitch seem to be getting back on track for AC Milan, matters off it are looking uncertain.

Appointing Gennaro Gattuso has seen Milan put in a series of good performances and the Serie A giants recently bagged a mega kit sponsorship deal from PUMA as well.

However, reports from Italy confirm that AC Milan’s owner, Yonghong Li is financially bankrupt and will have to auction his assets soon.

As reported first by Corriere della Sera, AC Milan’s owner, Yonghong Li is bankrupt and his assets will be auctioned on Taobao. The Chinese businessman had to take a huge loan to complete the €740 million move in order to take the club’s ownership, but what is actually new is the fact that he was already insolvent at the time.

Li only owns a small part — 12% — of a packaging company, which has been valued around €60M, and his shares will be auctioned on the Chinese equivalent of eBay, called Taobao.

It was also revealed that China’s Securities Regulatory Commission has ordered a probe into Shenzen Jie Ande, who allegedly has been hiding the bankruptcy details from a long time. The deal was to pay AC Milan’s former owner Silvio Berlusconi a total of €740 million to acquire the club.

However, the Chinese businessman had to take a huge loan of €300 million from venture capital fund Elliot Management. An additional €340 million was funded by offshore companies while he only put in €100 million from his own pockets.

Now Corriere della Sera report that Li in reality, is incapable of repaying the loan and is also being sued for unpaid debts by tow banks as well.

The owner, however, maintains his financial stability and is certain that the news is fake. In a statement, Li said the allegations have "severely damaged" the club, his companies, and family, adding: "The situation concerning my assets is safe and sound."

"Both the club and my companies are steadily working. I, therefore, hope that no credit is given to the latest news that isn't true.”

Despite making a record £200million summer signings that included Andre Silva and Leonardo Bonucci, AC Milan sit seventh in Serie A, 25 points behind leaders Napoli, battling for a Europa League spot.

The club appointed former midfielder Gennaro Gattuso as the new manager in November who pulled them up from 10th spot.