Milan, what happens now?

by | Jun 27, 2018 17:32

As Milan are excluded from Europe for Financial Fair Play violations, Football Italia looks at the likely next steps for the Rossoneri.

The long-awaited decision by UEFA’s Club Financial Control Body was handed down today, with the Rossoneri given a two-season ban.

However, it only applies to one competition so if the Diavolo qualify for Europe next season – and improve their financial situation – they can enter European competition.

As Milan are excluded from Europe for Financial Fair Play violations, Football Italia looks at the likely next steps for the Rossoneri.

The long-awaited decision by UEFA’s Club Financial Control Body was handed down today, with the Rossoneri given a two-season ban.

However, it only applies to one competition so if the Diavolo qualify for Europe next season – and improve their financial situation – they can enter European competition.

It’s a bombshell verdict, one of the toughest in the history of FFP, and many will be asking what happens next.

UEFA will publish their motivations

The CFCB will publish the motivations for its decision in the coming hours, which will explain the precise reasons Milan were excluded.

It’s already known that there are doubts over owner Yonghong Li, while debts incurred under previous owner Silvio Berlusconi were also taken into account.

A voluntary agreement and a settlement agreement were already rejected before this decision, so it’s clear UEFA has serious doubts about the club’s finances.

Milan will appeal

The Rossoneri had already confirmed that they’d appeal the decision to the Court of Arbitration for Sport if UEFA banned them from European competition.

An official announcement of the appeal should arrive in the coming hours, and a decision will take around two weeks.

Milan had hoped to be able to present a new investor – or indeed owner – at the hearing, but Rocco Commisso’s takeover appears to have stalled or collapsed entirely.

CAS does have form for reducing the severity of punishments, but the delay in announcing the verdict is thought to be down to UEFA’s desire to outline their case as strongly as possible.

Fiorentina will enter the Europa League

If Milan’s appeal is unsuccessful, they’ll be replaced in the Europa League by Fiorentina.

Given that the Diavolo finished sixth, Atalanta will move up a place and enter the group stage.

The Viola would therefore start in the second qualifying round, with the first leg on July 26.

Today they moved their pre-season training forward by two days, indicating that they knew this decision was coming.

Will Milan be sold?

Yonghong Li’s tenure as Rossoneri owner has been fraught with negative headlines and opaque business practices.

He needed a series of loans from U.S hedge fund Elliott Management to finance first the takeover and then a €200m summer spending spree.

The Chinese patron missed a deadline to pay €32m for a capital increase, a fee that was then covered by Elliott.

New York Cosmos owner Rocco Commisso was primed to take over, but negations appear to have collapsed as Li has found the money to repay the €32m to Elliott.

That may just be delaying the inevitable though, as if they aren’t repaid in full in October they can take control of the club.

Milan would then be sold to the highest bidder, or have their best players and assets sold to recoup the money.

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