AC Milan face FFP penalties as UEFA reject request

Lausanne, December 16: AC Milan face penalties from UEFA after European football's governing body said it had failed to strike a deal with the Italian club over its spending.

Seven-time European champions Milan have run up losses of 255 million euros ($300 million) in the last three seasons, way above the 30 million euros permitted by the rules that are designed to stop clubs from over-spending.

Under UEFA regulations, any European soccer club that spends more than its generated revenue faces possible sanctions, including, in certain circumstances, a ban from playing.

However, a club can ask for a waiver to the FFP under a so-called 'voluntary agreement' scheme.

Milan had asked UEFA to be able to exercise its right to waive the FFP rules after Chinese entrepreneur Li Yonghong bought the club from Italian holding company Fininvest.

But UEFA rejected a request by AC Milan, citing uncertainties in the Italian soccer club's financial situation.

UEFA's Club Financial Control Body (CFCB) rejects AC Milan's request for a "Voluntary Agreement"
Cite uncertainty over the Elliott loan (due Oct 2018) + Li Yonghong financial guarantees. Not a surprise. But now refinancing/new investment becomes crucial.
https://t.co/sU7DiyrLsL

— Gabriele Marcotti (@Marcotti) December 15, 2017

"There are still uncertainties in relation to the financing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder," UEFA said in a statement.

"AC Milan will continue to be subject to the ongoing monitoring process and the situation will be assessed again in the first months of 2018," it added.

"After careful examination of all the documentation and explanations provided, the Chamber decided not to conclude a voluntary agreement with AC Milan," a UEFA statement said.

The key concerns focus on the takeover of the club by Chinese businessman Li.

UEFA said: "There are still uncertainties in relation to the refinancing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder."