U.S hedge fund Elliott Management has reportedly written off Milan’s debts, having taken over from Yonghong Li.
The Chinese owner had to borrow around €180m from the fund to pay for his takeover, while the club itself was loaned €73m initially, which rose to €128m to pay players and clear bank debt.
Those loans also carried a high interest rate, but MilanNews reports that after seizing control of the club the hedge fund has cleared the debt.
U.S hedge fund Elliott Management has reportedly written off Milan’s debts, having taken over from Yonghong Li.
The Chinese owner had to borrow around €180m from the fund to pay for his takeover, while the club itself was loaned €73m initially, which rose to €128m to pay players and clear bank debt.
Those loans also carried a high interest rate, but MilanNews reports that after seizing control of the club the hedge fund has cleared the debt.
Elliott is now expected to inject around €50m to stabilise the Rossoneri’s finances, with a focus now on gradual investment to respect Financial Fair Play rules.
The hedge fund plans to sell the club on, but must ensure that Milan are no longer in financial difficulty to make them attractive to new owners.