Summer transfer window 2018

[Hitman]

Hitman, at this point I wouldn't make any assumptions on UEFA's rulings. Given we've reached this point to begin with makes our situation very difficult.

On the background checks, again I'm not sure what's been done and while I agree that it seems hard to imagine that all of this could have happened without Yonghong Li having money, the way things have worked out makes it difficult to understand how thorough and lenient the checks were. Bear in mind Elliot have a history of lending to businesses in serious trouble as they can later cease and strip assets for profit.

As for Li being the representative for a consortium isn't exactly filling most with confidence, because there's no transparency to know if that's the case and until now huge proportions of the financing has been carried out by taking high interest loans from Elliot. If there are backers, there's zero visibility on them funding anything and it's alarming that Li's been struggling to pay of relatively paltry amounts (10m) and needing his wife (who comes from a wealthy background) as a guarantor.

The thing is that while I respect your optimism, the signals coming out are that Li's or whoever's finances aren't in order and therefore there are very real concerns about their financial health or ability to fund the club. More importantly, it's public knowledge that we're fast approaching deadlines to repay Elliot and have yet to refinance the debts. These are the same concerns that UEFA will have and until now, regardless of their financial expertise, what's been submitted clearly hasn't convinced them of the club's future.

Something has to change as this can't be sustained now. Either Li has to give up the club, or he's got to show he's capable of financially supporting the club.

If you seriously think he has troubles trying to pay 10m (1%) after spending already about 1b on Milan (debt or not), then I respectfully withdraw myself from this conversation as there’s nothing to talk about. 

Anyways, the board meeting 30 mins ago was precisely regarding this 10m capital increase which was fulfilled but Fassone also mentioned that there’ll be a further 30m capital increase before the end of June. This above negates your theory that he doesn’t have 10m to spend.

Yes he has been using his wife as a guarantor... but so what? Have you considered the possibility that the majority shareholder is the family of his wife who have all their connections with the governments? It’s definitely likely for their family to pick a male rather than a female to be the representative of this consortium but Li is not the sole owner of mIlan, always remember that and that’s where everybody makes their wrong conclusions. I wouldn’t be surprised if he owned less than 20% of Milan. He’s just the face that represents the consortium.

Now let’s go to your comment about Elliott being known for stripping assets and selling them at a profit - which is true. This, if anything, strengthens the argument that Elliott are confident they’d be able to sell MIlan at a profit and for them to do that, they’ll need MIlan to be run efficiently in order to maximize those gains right? Well, they’ve approved of this ownership and management (they mentioned Fassone specifically by name) and confided in them to pay them back their loan. If Yonghong Li fails to pay back the loan, Elliott will be forced to sell to a new owner who will want his own management and that will set MIlan behind decreasing their value even further. That’s is not the ideal scenario for Elliott.

[nefremo]

Here are Fassone's comments after the BOD meeting:
1. We will sign 3/4 players no matter the outcome of UEFA's decision.
2. He confirmed that at worst, we risk being excluded from Europe but even though that will lower our budget, it won't be a significant sum.
3. There is a 40 mil capital increase approved.
4. UEFA's decision to take disciplinary action is mainly based on the uncertainty of the future of the club.
5. The refinancing of the loan is not as complex as the media is making it out to be


Here are my 2 cents.....
1. I think we have a couple of signings wrapped up and something tells me Immobile might be one of them. The problem is, we are not going to announce anything until the meeting with UEFA as it would be a slap in the face to them if we go splashing 40,50 mil on players while they are telling us not to.
The rest of the negotiations are probably on stand by, which sucks and I hope we don't lose out on targets because this UEFA thing will take forever....unless of course those targets are people like Fellaini. In that case, I don't care if we lose out on him.

2. I understand that being out of EL won't impact our budget significantly but it will be a big hit on our reputation and at the same time players will have big doubts on joining us. I hope this doesn't happen.

4. UEFA can't make a decision solely based on this. Slifersd has been talking about this and is completely right. So far, Milan has met all its financial obligations. All clubs out there have loans and sum way bigger than Milan's. The fact that ours happens to be a short term one with a Hedge Fund should not be treated any differently. Until Milan defaults, Milan can't be punished. It makes no sense. As Slifersd has mentioned, it's like finding someone guilty of what they MIGHT do in the future. Makes no sense.

5. I don't understand this comment. If it's not complex, then why haven't we done it? If we know this is one of our main problems with UEFA, why not just get it done and get UEFA off our backs??

[reza]

Elliott or a lender or any bank (remember that teams that got our 200 million last summer are not waiting for Elliott, there is no way they would do that, even if transfers are installments other teams won't do business like that) would not just do Li a favor cause they can may be take over team later. Li definitely has some money somewhere.

[nefremo]

Elliot risked nothing in this. It was an easy decision to make for them to give Li the money, whether he has money somewhere or not. They got Li to put the club in as collateral. If he defaults, they take the club and will easily make their money back and some. If Li pays back, it's business as usual.

Think of it this way....you are a creditor and someone wants to borrow 50,000 but is willing to put their house (worth 100,000) as collateral. Easy decision, no? You just have to make sure that during the repayment period, the person that's borrowing doesn't trash the house completely and bring its value down below 50,000. This is why Elliot has a representative on the board.

In a way, it's kind of like a mortgage on a house. You apply for a loan, bank appraises house and makes sure that they don't give you more than it's worth. You don't make payment, they take the house. Difference here is that the Banks get screwed because the housing market is saturated. In our case, there is only 1 Milan, and the loan is so much lower than the actual value of the club that Elliot will have zero issues making its money back and making a profit.

What I'm trying to say is that Elliot didn't necessarily give Li the money because he showed proof of being abke to repay it or because he has a stash somewhere. They gave him the money because of what they were going to get in return even if Li doesn't pay up.

I'm not excluding the fact that Li might have money or that he might be a part of a consortium. I'm just saying, when you look at the situation, it doesn't really matter to Elliot, does it?

[reza]

How can you say Eliiott risked nothing? banks have gone down dozens of times in the last few decades, for precisely these kinds of investments gone bad, Elliott may be huge but this is at least a 350 million gamble. And you think Ross or anybody will offer Elliott a full value to buy Milan? if those people existed they would have approached Berlu. If Li has nothing to show for it except a money losing team Elliott risk a lot. The next who owns Milan will get it for *at most* 350 million.

[nefremo]

Of course those people exist. Milan will be sold for 350mil very quickly. Berlu couldn't find those people because he was asking for 1bil. He finally sold for 700+mil. We are talking double.

[Jay Crisp]

If you seriously think he has troubles trying to pay 10m (1%) after spending already about 1b on Milan (debt or not), then I respectfully withdraw myself from this conversation as there’s nothing to talk about. 
.

He clearly did as he missed the deadline.Got two extenions missed both those as well and in the end had to again borrow the money with a very very high interest loan.

[SkyEdge]

https://www.calciomercato.com/news/kalin...olo--57863

Oh Man.. KaliGod insists on staying with us.. reportedly turned down 3 clubs willing to take him to prove himself at Milan.. if he still sucks next season i swear imma travel to Jamaica and voodoo his ass to the first flight out of Milan and continually curse him in my sleep..

[reza]

Of course those people exist. Milan will be sold for 350mil very quickly. Berlu couldn't find those people because he was asking for 1bil. He finally sold for 700+mil. We are talking double.

That's what I said but 350 million is a risk for Elliott more than anybody else, if a 1 billion dollar buyer exists then your statement about no risk Elliott would be correct.

[Jay Crisp]

Are we banter again