05-25-2018, 11:11 AM
UEFA doesn’t agree to give Milan the settlement agreement based on the books of 2014-2017 (the official reason for rejection btw) and it’s rumoured that these are the possible penalties:
1- 20m fine
2- Milan will not be allowed to register any new players they buy this summer for the Europa League before they sell players in their current squad
3- exclusion from UEFA
#3 is automatically ruled out cause our numbers aren’t as bad as other clubs. Plus it’s only or first attempt negotiating an agreement with UEFA. Exclusions usually have happened after repeated offenses by the clubs.
#2 could be possible and that’s exactly what happened to Inter and Roma in recent years.
#1 is rumoured to be the likeliest scenario. A 20m fine.
Last summer Milan was bought for a record fee of 740m Euro and the owners spent 215m euro on the summer transfers plus developed Milan China for a rumoured 100m, not to mention their intentions to build a new stadium (confirmed by the mayor of Milan on several occasions) would cost another 250-350m. They’re rumoured to spend about 1.2 billion euros just to enter their new business adventure of owning Milan and people now are worried about a 20m fine or worried why they haven’t paid all of that 1.3b cash upfront?
If they did pay in cash I would be a lot more concerned than if they used debt because that’d show how careless they are about money and how to manage it. These debts are absolutely necessary to make the most out of the cash that they do own.
If entities such as Elliott, Finninvest and even the mayor of Milan have spent months doing background checks on this group and yet still agreed to Finance them or give them their seal of approval, it must mean that these very experienced entities have seen something that the general public hasn’t seen that gives them the confidence that they will be getting their financing money back.
Now back to UEFA, Italian clubs are at a tremendous disadvantage than the rest of world (not just European) football because the rules in place does not allow them to own their own stadiums so a big chunk of revenue that they should potentially earn is wasted. The FFP is basically ‘you have to spend from your earnings’ and if Italian clubs already Earn significantly less from TV rights deals than most of the top clubs in Europe, how far behind do you think they are without even the earnings they could make from their stadium (an additional 200-300m for Milan)? UEFA must take this fact into consideration because it’ll only serve to make the difference between Italy and the rest of Europe bigger.
UEFA are a football governing board, not financiers. They don’t speak the language of finance as good as how Elliott, or our management does. Our new ownership is as complex as they come but that doesn’t mean it wouldn’t work. Clarity is definitely required from UEFA but they don’t necessarily need to reveal their information to the general public yet. I’m certain in due times things will be revealed.
Right now I just think everyone is blowing things out of proportion, especially the journalists. This phase is very reminiscent of the months prior to closing and I’m not surprised that it is the same members and users who couldn’t understand how the sale would be possible who are saying that Milan’s current management or ownership are about to fail.
At the moment, all that happened was the UEFA rejected Milan’s settlement agreement. I have no clue why people think that we are about to get sold. It’s astonishing really. Milan never really was fully owned by Yonghong Li, he always was just the representative of this consortiums that owns Milan. Yonghong Li’s idea always was to sell it off for a profit but after they put in their investments and increase Milan’s stock. The Stock Exchange idea indicates that this scenario is a likely one.
1- 20m fine
2- Milan will not be allowed to register any new players they buy this summer for the Europa League before they sell players in their current squad
3- exclusion from UEFA
#3 is automatically ruled out cause our numbers aren’t as bad as other clubs. Plus it’s only or first attempt negotiating an agreement with UEFA. Exclusions usually have happened after repeated offenses by the clubs.
#2 could be possible and that’s exactly what happened to Inter and Roma in recent years.
#1 is rumoured to be the likeliest scenario. A 20m fine.
Last summer Milan was bought for a record fee of 740m Euro and the owners spent 215m euro on the summer transfers plus developed Milan China for a rumoured 100m, not to mention their intentions to build a new stadium (confirmed by the mayor of Milan on several occasions) would cost another 250-350m. They’re rumoured to spend about 1.2 billion euros just to enter their new business adventure of owning Milan and people now are worried about a 20m fine or worried why they haven’t paid all of that 1.3b cash upfront?
If they did pay in cash I would be a lot more concerned than if they used debt because that’d show how careless they are about money and how to manage it. These debts are absolutely necessary to make the most out of the cash that they do own.
If entities such as Elliott, Finninvest and even the mayor of Milan have spent months doing background checks on this group and yet still agreed to Finance them or give them their seal of approval, it must mean that these very experienced entities have seen something that the general public hasn’t seen that gives them the confidence that they will be getting their financing money back.
Now back to UEFA, Italian clubs are at a tremendous disadvantage than the rest of world (not just European) football because the rules in place does not allow them to own their own stadiums so a big chunk of revenue that they should potentially earn is wasted. The FFP is basically ‘you have to spend from your earnings’ and if Italian clubs already Earn significantly less from TV rights deals than most of the top clubs in Europe, how far behind do you think they are without even the earnings they could make from their stadium (an additional 200-300m for Milan)? UEFA must take this fact into consideration because it’ll only serve to make the difference between Italy and the rest of Europe bigger.
UEFA are a football governing board, not financiers. They don’t speak the language of finance as good as how Elliott, or our management does. Our new ownership is as complex as they come but that doesn’t mean it wouldn’t work. Clarity is definitely required from UEFA but they don’t necessarily need to reveal their information to the general public yet. I’m certain in due times things will be revealed.
Right now I just think everyone is blowing things out of proportion, especially the journalists. This phase is very reminiscent of the months prior to closing and I’m not surprised that it is the same members and users who couldn’t understand how the sale would be possible who are saying that Milan’s current management or ownership are about to fail.
At the moment, all that happened was the UEFA rejected Milan’s settlement agreement. I have no clue why people think that we are about to get sold. It’s astonishing really. Milan never really was fully owned by Yonghong Li, he always was just the representative of this consortiums that owns Milan. Yonghong Li’s idea always was to sell it off for a profit but after they put in their investments and increase Milan’s stock. The Stock Exchange idea indicates that this scenario is a likely one.