It’s reported that the public prosecutor has opened an investigation into Silvio Berlusconi’s sale of Milan to Yonghong Li.
The Chinese businessman took over the Rossoneri in April last year, financed by loans from U.S hedge fund Elliott Management.
Now numerous sources, including Gazzetta dello Sport and Tuttosport, are reporting that Milan’s public prosecutor has opened an investigation into the sale.
Importantly, this is a ‘Model 45’ file, which means that there is no allegation of a crime in the initial inquest.
It’s reported that the public prosecutor has opened an investigation into Silvio Berlusconi’s sale of Milan to Yonghong Li.
The Chinese businessman took over the Rossoneri in April last year, financed by loans from U.S hedge fund Elliott Management.
Now numerous sources, including Gazzetta dello Sport and Tuttosport, are reporting that Milan’s public prosecutor has opened an investigation into the sale.
Importantly, this is a ‘Model 45’ file, which means that there is no allegation of a crime in the initial inquest.
The investigation is said to stem from a report by the Guardia di Finanza, which spoke of three “suspicious transactions” dating back to December.
It’s not the only issue off the pitch for Milan, as they also have Financial Fair Play and the refinancing of their debt to Elliott hanging over them.
Shareholders must approve another €30-35m of capital to run the club until the end of the season, and Gazzetta della Sport reports that the money will come from Elliott, not from Li.
Meanwhile, the meeting with UEFA in Nyon for a settlement agreement is set for April 19 or 20, and the Diavolo risk a European ban if they don’t refinance their debt.
The €303m debt to Elliott was one of the reasons given for the rejection of a voluntary agreement, so Merrill Lynch is working to find a new lender.
As yet though there has been no announcement, with Elliott set to loan another €30-35m.
Gazzetta warns that UEFA will not like the fact that a hedge fund is the de facto owner of a football club, which could be the case if no refinancing can be agreed.
Elliott can take control of Milan’s assets if their debt isn’t repaid by October, which currently stands at €303m between Li and the club itself.