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Losses getting worse and worse at Milan

Football Italia reports, 'The Corriere dello Sport analysed Milan’s finances and warned they’ll reach June 30 running at a €100m loss for this year alone, €413m over five years. As the Rossoneri await the verdict of their appeal against the Financial Fair Play penalties, with another UEFA case ready to go for even more violations, the situation remains extremely unstable.

The club is under its third ownership in three years, after Silvio Berlusconi, then Yonghong Li defaulted on his loan payments, meaning AC Milan was effectively repossessed by hedge fund Elliott Management. Failure to qualify for the Champions League put even more pressure on the finances and the Corriere dello Sport calculates that they are currently running at a loss of €100m for the 2018-19 season.

The losses have been getting worse and worse over the last five years, from €91m in 2014 to €126m for 2017-18. Over the period of five years, Milan have been running at a loss of €413m.'

On 22nd May 2018, the Club Financial Control Body (CFCB) informed Milan that no settlement would be offered due to the level of the breach of the break-even rule (c. €121m), the submitted business plan not being viable, the dramatic downsizing of expected profits from one business plan submitted to UEFA to the next, and a variety of other concerns related to the refinancing of club debt and the ownership of the club. In June, Milan were barred from UEFA competitions for two years.

Milan appealed on 13 grounds, most of which seemed to be regarded as not legally justifiable. The Panel did however find that the decision of the Adjudicatory Chamber must be overturned as the Adjudicator’s decision was based on out of date facts. The matter was referred back to the CFCB for a proportional sanction to be imposed.

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