UEFA rejects AC Milan bid for FFP deal

MILAN (AP):

UEFA has rejected AC Milan's bid for an agreement to end a financial fair play investigation that threatens to derail the plans of the club's new Chinese owners.

While Milan spent more than €200 million on new players in the offseason, there have been questions about the financial stability of the Chinese-led consortium that purchased the club from Silvio Berlusconi for US800 million in April.

UEFA says "after careful examination of  all the documentation and  explanations provided" it decided "not to conclude a voluntary agreement".

Milan took a loan from US private equity fund Elliott worth more than €300 million.

UEFA says "There are still uncertainties in relation to the refinancing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder."

UEFA will assess Milan's finances again in early 2018.

Possible punishments include limits on transfer spending, player salaries, and squad sizes for UEFA competitions.