Milan's Financial Position

[reza]

And btw a team like Inter is avoiding FFP issues by selling young players but with a buy back option....FFP is a fail 100%

[Jay Crisp]

Milans woes are in Li and not their finances.UEFA dont want a club to fall into a vulture funds hands.This seems to all be on Li and not Milans books.Its why thefes a delay maybe.He sells they recvisit the table perhaps.

[nefremo]

Jay, I understand that......but that means they are punishing us on what MIGHT be. Not on what actually IS now. Yes, Milan might fall into the hands of a vulture fund, but there is no way for them to know that until it happens in October. It is completely unjustified. If that is what we are being punished for, then this is completely unfair. It's like you buying a car on a loan when you have a job and money to pay monthly payments. 6 months later, you lose your job and are struggling, but somehow you keep making payments for the next 3 months. Then, bank comes and tells you to return the car (or not drive it or repossess it from you) because they don't think you can make the next payment. Well hold on a second....how???? You need to miss your payment first and foremost for that to happen. They can't just do it on the premises the you MIGHT default.


Btw.....i am not saying all of this stuff to you. Just discussing. I think we are all in agreement here that UEFA and their corrupt FFP is a joke.

[slifersd]

Li is in a real tough position right now with this whole situation. He most likely does not have the resources to pay any more capital increases, which will mean Elliott can take over the club really soon. As soon as Elliott takes over, Li is completely f*cked, because Elliott has no reason to sell the club for much more than the debt owed to them. Li would be lucky to get anything back if Elliott sells the team, one year after spending 1 billion, 70% of which were money he did not loan from Elliott to buy the team. At this point, it probably serves Li's best interest to close the best deal he can find right away to prevent Elliott taking over, even if he has to take a substantial loss on his investment. The other factor is that the club value has taken massive losses since Li's takeover due to the UEFA crap, so keeping it around could result in even further decrease in club value.

Li is now negotiating in a position of supreme weakness, and I don't see any way in which this whole thing can work out well for him. Sad reality is, these American investors are sharks and they smell blood in the water now.

[Kastriot]

Li is in a real tough position right now with this whole situation. He most likely does not have the resources to pay any more capital increases, which will mean Elliott can take over the club really soon. As soon as Elliott takes over, Li is completely f*cked, because Elliott has no reason to sell the club for much more than the debt owed to them. Li would be lucky to get anything back if Elliott sells the team, one year after spending 1 billion, 70% of which were money he did not loan from Elliott to buy the team. At this point, it probably serves Li's best interest to close the best deal he can find right away to prevent Elliott taking over, even if he has to take a substantial loss on his investment. The other factor is that the club value has taken massive losses since Li's takeover due to the UEFA crap, so keeping it around could result in even further decrease in club value.

Li is now negotiating in a position of supreme weakness, and I don't see any way in which this whole thing can work out well for him. Sad reality is, these American investors are sharks and they smell blood in the water now.

Actually, as far as we are concerned, he can go f himself. I hope the Americans can go as low as possible, so they have much more money to invest in the club. Li got himself in a mess where he absolutely did not belong, and that was his wrong doing.

[reza]

FFP clearly talks about breaking even on sporting side and allowing losses for a few seasons until a teams gets there. There is no basis on paper to punish Milan because of who might own the team and Li is being punished after ONE year.

About that check this for example:

The debt taken on by the Glazers to finance the takeover was split between the club and the family; between £265 million and £275 million was secured against Manchester United's assets,[49] putting the club into debt for the first time since James Gibson saved them in 1931. This loan was provided by three New York hedge funds: Citadel, Och-Ziff Capital Management and Perry Capital.

This is not even unusual.
Actually if you take away EPL money Milan is not less secure than Man United. Laugh if you want but it's true...of course EPL money is a big difference but I am just saying we are reading too much into banks and hedge funds.

[Jay Crisp]

Jay, I understand that......but that means they are punishing us on what MIGHT be. Not on what actually IS now. Yes, Milan might fall into the hands of a vulture fund, but there is no way for them to know that until it happens in October. It is completely unjustified. If that is what we are being punished for, then this is completely unfair. It's like you buying a car on a loan when you have a job and money to pay monthly payments. 6 months later, you lose your job and are struggling, but somehow you keep making payments for the next 3 months. Then, bank comes and tells you to return the car (or not drive it or repossess it from you) because they don't think you can make the next payment. Well hold on a second....how???? You need to miss your payment first and foremost for that to happen. They can't just do it on the premises the you MIGHT default.


Btw.....i am not saying all of this stuff to you. Just discussing. I think we are all in agreement here that UEFA and their corrupt FFP is a joke.

I am in total agreement with you , I probs didnt make that clear.UEFA are just using Milan as a measuring stick ...do this and we will punish you.They could literally ruin the club for things that may happen.Imagine a court convicting someone of a crime they thought they "might" commit in the future its ridiculous.

[ACMILAN1983]

I wonder what our legal standing is with all of this. I'm specifically wondering if there are legal grounds for us to go against UEFA (more than just trying to get decisions overturned)

[AC_Troy]

Rocco Commisso's Mediacom Communication is ready to close the deal to purchase Milan but are waiting for a response from Yonghong Li

"We are here, we are ready: we wait. It does not depend on Mediacom." a source close to Commisso told Radiocor agency.

[slifersd]

I wonder what our legal standing is with all of this. I'm specifically wondering if there are legal grounds for us to go against UEFA (more than just trying to get decisions overturned)

I have to think our legal standing isn't great. There are usually two ways for a governing body to determine punishment, by specifically stating the punishment in the rule or based on prior examples. This UEFA sanction fits into neither category as the FFP does not specify how much punishment is applicable to our violation specifically and prior examples do not fall in line with what we got too. That leads me to think UEFA must have language in the FFP that basically allows them full discretion on how to dish out punishment, similar to what Roger Goddell in the NFL has. In that sense, the FFP is basically written so that UEFA can dish out punishments and sanctions however they feel like doing it. And if that were the case, then we have no case against them. I can't imagine UEFA wouldn't have this in the FFP by the way they are handing out punishments so arbitrarily. 

I am not a lawyer, so i might be talking out of my ass here. But I do think Yonghong could potentially have a case against UEFA. If he is forced to sell the team and take a massive loss on the sale because UEFA is basically using its power to force him out (which they are). Then he can probably argue that UEFA law never specifically outlawed his activities, and UEFA caused him great financial loss by specifically targeting him with its rules. The evidence of this would be pretty clear. Maybe he can get some cash from UEFA to offset his losses that way.