It depends; first we must see if the club survives all this financial turmoil. I'm really skeptical but...

Our position is shaky, Yonghong is running out of time. On the other hand Elliott wouldn't be such a bad option, just that they will operate the club more efficiently to create value and sell it off. That efficiency, means cut the squad and cap the wages to manage revenue.

Elliott has circa €303M invested in Milan via Yonghong. That is a discount to what Yonghong paid. They could sell to a buyer anywhere north of €303M. But before that happens there will be a clean up, ie reducing debt. Astronomical build up of debt mostly due to take over. That happened with the Glazers at United amongst others.

But I come to think, during such low interest rate environment, Yonghong took the loan from Elliott at 11.5% , meaning total due in October is €380M, this in low interest rate environment? That generally means he is high-risk client. The man also took out $400M from another bank, he only put in €100M of his own funds. He was scavenging for cash, the installments and the missed deadlines that Berlusconi got €750M (net off debt circa €550M). But Li took out that loan and will most likely default. As things stand China has shored up on funds leaving China. The solution Yonghong is looking for is to refinance the loan, ie get another loan for €380M to be repaid on better terms (or most likely worse). With the club still taken as collateral.

I believe he has the capacity to continue with deep pockets, but because the Chinese Govt has prevented these big funds from moving, he isn't allowed to take those pockets with him. Hence why the terms given to him are always going to be aggressive.

Not trying to stir up controversy, but if you can't put up 40% of the funds in a takeover, then what are you doing? All the players Milan bought and own are defacto owned by either elliott or the bank.

If you have read up till here, I'm sure you get the drift. Gattuso's inclusion in the fold is to get some disapline in the squad, as things could get pretty rough from here till the end of the summer. Will Yonghong win in the end or will Milan be tossed around and sold to the highest bidder? I'd say the latter.

But all options sound bad in short term span. And I really think this was our last chance.

Can't see Romagnoli being sold.

I'm not saying that we won't sell anyone of value this summer. But I'm sure the first on that list would be Donnarumma and Suso. I think Romagnoli falls into the untouchable category for the club

Well, the UEFA ruling most came because of the club's financials before the new ownership took over, so once again, this goes back to the mismanagement from Galliani. As for the new ownership, it's really not looking good. The club last week asked for further capital increase and Li sent the money over just in time through the Luxemburg company (I think the transaction happened yesterday). I really don't understand what's going on with Li just that he's shady and no one knows if he's really rich or not. Just seems like he's barely holding on by a thread. There has to be someone behind him but it's obvious that the money isn't flowing into the club like with those other teams you mentioned.

PSG and City have huge sponsorship deals with companies owned by their owners. UEFA fine them for over inflated sponsorships but nothing else. Real and Barcelona have huge revenues from marketing and TV rights which they monopolise in their league. I don't think they have any issues with FFP no matter what they spend

PSG and City have owners with substantial financial power. Our owner relies on bank loans to finance our mercato. That's the difference.

News filtering out that Li has decided upon a minority share. And it will be to an individual and not a consortium. Eases out a lot of the worries I guess, if it can come through.

Romagnoli renewal is one positive news for us.

What do you guys think of the Falcao rumors?

I'd have liked someone younger. But playing Falcao would suggest a change in tactics no? Our striker in the 4-3-3 has been more of a link-up player than a pure bomber. So now do our two wide mids exist to service the striker? A bit like the old Chelsea under Mourinho.

It might bring the best out of Jack as he would essentially be our Lampard then with runs from mid. But Rino's comments are interesting. He really talks like he's got a plan. Let's see.

As for Li - the investigation from Rai sport sounds basically like a hatchet job on Berlusca (doesn't mean it is not true). Basically Li was a front for Berlusca to launder some cash and get his company into the black. That's the refrain.

I wouldn't put it past the old dog to play that trick - however it leaves doubts as to the future of the club.

That they do, but FFP still wouldn't allow them to pour money in directly to the club, so they have inflated sponsorships which allows them to still be able to bankroll their clubs without facing sanctions.


I think he's past it. We really should be looking elsewhere imo and if we're going to exchange Silva for a Monaco player we should be looking at guys like Keita or Lemar

Hey guys, hope you all are enjoying your summer and world cup

While Milan are set to enter their final arugment to UEFA, in order to salvage the least of damages from it's FFP breach. The outcome of which is this weekend. News on FI

On Milan players in the WC that I would like to see go, definitely Kalinic.

Kalinic isn't on the WC

Because he refused to enter last night. What an idiot. First by Gattuso, now in the WC. One of the worst buys we've made in the last 10 years given the money we spent on him.

Looks like we're heading to America!

The Ricketts (owners of the Cubs) have confirmed that they are in advanced negotiations to acquire a majority share in the club

There is hope yet! Apparently, Li did not make the capital increase of 35m required by the deadline either so Elliot might step in.

The mess Silvio left us in is truly despicable. And for him to go out straight faced and say he sold it to the best buyer for the club. He just wanted his inflated fee to get Fininvest out of hot water and nothing else

Hopefully something happens. We're in a catastrophic situation at the moment.

I think at this point it's pretty much a surety.

I might be pretty simple when it comes to finances and business, but can someone please explain to me what the point was for someone like Yonghong Li to acquire the club at an inflated value on high rate loans and barely be able to keep hold of it for less than a year?

Anyways, the Rickett family confirming themselves the deal is in advanced stages seems to be a confirmation that it will happen, or I'd imagine that they wouldn't announce anything at all if they were not confident of the deal going through

Let's see, they've done great things for the Cubs, or so I've been reading, I don't follow baseball at all but it seems they've done a great job for that franchise.

Free spending in football similar to what PSG and City did is no longer possible, we're running a serious risk of being banned from Europe next season plus a hefty fine. This club needs to be run properly and these guys seem to know how to do that

Our problem with UEFA resides in our revenues. We spend but can't keep up.

Li's problem is that China barred movement of big funds from it's banks abroad. Hence Li seems unable.

Silvio sold the club when Serie A was already in a decline. Any new owner would be faced with challenges. Namely to increase Revenue.

Whoever ends up with majority stake at Milan will be faced with challenges. It is a good thing Gattuso is the coach otherwise we'd have bigger problems in the squad.

But other clubs in the league, namely Roma and Inter have had the same issues with revenues, Inter are still having trouble now, it's why they haven't announced any signings, they're waiting for the fiscal year to end and then they can spend, still within limits. UEFA's problem with us is more to do with the fact that our ownership is shrouded in mystery, no one knows who this Li guy is or where the money is coming from and that is what will condemn us in the UEFA ruling

As for China barring money going out of the country, this was a known issue even before the deal was done, so my question still remains, why purchase a club and then sell it before the year is even up?

True, but look at Juve, Roma and Inter now as well, Juve are the very obvious exception due to their stadium, but the fact that they go deep into the CL each year helps even more than that, especially since before last season with Roma, they were the only Italian team going deep into the competition so they get Italy's entire share of the loot.

I'm not saying there aren't challenged with owning a club in the Serie A these days, for sure there are, and it's much more lucrative to buy a PL club, but if a smart business plan is put in place, you can still thrive. Juve have been doing it for years and Roma are definitely being run well by their American owners. Suning is also turning the tide at Inter. Our problems have been festering for years with Galliani having the run of the place and being allowed to make shady deals with agents and club owners within his circle and now this lot we have now, Fassone talks the talk but I don't think he's the right man for the job and Mirabelli is obviously completely out of his depth as a sporting director for a club who absolutely needs to get back into the CL on a regular basis

Mediaset says Commisso, owner of the NY Comos, has an advantage over the others to become the new shareholder.

Looks like talks have broken down as Li wants to insight a bidding war.

Honeslty do not understand why someone who risks losing everything would pull out of a deal like the one that was being reported. Absolute bonkers stuff.


And it's official as well, we're banned from Europe for next season, and the following season, should we qualify, would depend on our finances as we could be banned then as well. This would literally make our season useless next year as there is no goal for us if Europe is off the table. A total disaster for this club at this crucial point. UEFA should be ashamed as well. It's high time the big clubs really start discussing that Super League. How a corrupt entity could punish certain clubs and not others. If clubs like Real pull out of their competition it's over for them, and imo this is what needs to happen


Honestly, there couldn't be a worse day for us. This club is in free fall. The management is absolutely clueless, our brand name is suffering serious and irreparable damage. Silvio literally sold us down the river.


I've lost hope for the mercato and for next season. Inter are signing players like Radja and we're sitting out in the cold, getting banned from Europe, disaster in the ownership department and have literally no transfer prospects aside from probably losing our best players that is

It's a disaster. A complete, utter disaster.

At least Milan is rid of Galliani

But in all seriousness, yes this is serious. Galliani maintained a team that was within FFP reality for Milan and as such had ring-fenced its balance sheet. However Li’s takeover, which involved heavy leverage, started out with a splash of 200M on new players with substantial increase in wages (Donna and Bonucci come to mind). This brought the camera lights flashing. Not for long now, creditor is coming knocking. Eliott could sell Milan as a whole or player by player and asset by asset till it recovers 380M.

Any new investor or group of investors could provide us with comfort at this point. Just that we’d be kicking the can down the road again for the same problem arising at the end of next season. Why? Because Milan’s revenue is give or take the same. Without CL money, BIG sponsorship and increase in TV income, Milan’s revenue is not going anywhere.

Milan’s €191.7m in revenue taken in during the 2016-17 season; compare that to PSG’s €486M, Madrid’s €675M, United’s €581M, Chelsea’s €368M, City’s €473M, ... (Milan’s highest ever revenue in the history of all of Milan was a staggering €234M in the 2004-5 season.) oh yeah, and dont forget we wont have UEFA income from TV for next season so revenue is lower by default heading into 2018.

To put things into prespective; Significant revenue increases in other leagues – namely the English Premier League – have seen a slew of clubs jump ahead of Milan. In fact, all Premier League clubs have seen revenues increase by some 70% since the implementation of the new Sky/BT domestic television deal in 2016-17. While Spain has its exclusivity for their stellar sides.

Italian clubs simply can’t keep pace. Serie A is not due another TV deal until 2021 and its current value is less than half that of the Premier League. (I know I know, Juventus, Napoli, inter, Roma, etc etc ... they definitely have better management and stable ownership; wasnt the case always, Juve were demoted and reatructured plus new stadium, Napoli came back from oblivion in SerieB/C with stability and gradual improvement over years, Roma during Banks intervension to sell club from Sensi to Americans wasnt smooth, Moratti’s sale of inter was not smooth, they went through three owners in a couple of seasons.)

In closing, Milan cant qualify for CL unless it breaks FFP rules, which means exclusion and around we go

Read this sometime last week



Source:
https://www.90min.com/posts/6101578-ac-mila...ms-of-500m-deal

So, is there any hope?

Today is the last day, 6th i believe, no 30M, Elliot begin proceedings to take over Milan. Then sell at a price north of eur400M. This last offer was 500M iirc.

Is there hope that someone out there will buy for less than Li’s asking; ie Elliott if li defaults will effectively buy the club for 380M, if Commoso bought from Elliot at 500M (150M to transfer market) then Elliot will make a better return than allowing Li to sell to another.

Things should start unfolding today.

I'm still not sure what a best case scenario or worst case scenario would mean to us.

Ironically they are the same at this point. Li is no longer owner, technically. As such, Elliott is the new owner. Until further notice.

Yep, the club is now in Elliot's hands, and according to what came out from the CAS hearing yesterday, they plan on keeping it for at least 3 years and re-structure it completely. I think this is for the best.

How Li came about is still a mystery to me, and imo, it has to be something corrupt that went down. It just doesn't make any sense that he would not take the Commisso offer only to let Elliot take possession of the lcub and he loses out on over 500m. Just ludicrous to think that this is how it played out by accident. Something awful smelling went down, either between Li and Fininvest/Silvio or between Li and Elliot, because it just doesn't make any sense for himto default on the 38m and hand over the club when a 500m offer plus a 25% share is on the table. In no alternate universe does that make any sense

Anyway, I think this is really what the club needs, to finally be run like a proper business. And maybe we won't be back as quick as we'd all hoped after Silvio sold the club, but to finally have a healthy business operation in place is what this club has been craving since Silvio took his eye off the ball and allowed Galliani to run amok

Fassone and Mirabelli need to be shown the door as well. Both have proven to be incompetent in the roles they were given by equally incompetent people.

I wish I can be as optimistic as you. I don't know, I see no proper plan yet..

Likewise, it's a hedge fund. The only plan they have is to sell at the best price they can get. All the in between is extracting as much value for a potential sale.

The club will be sold eventually, but only after it has been brought back on its feet which obviously will increase its value and Elliot will make a profit out of it.

Good thing that Li, Fassone and from what I read Mirabelli as well are out. Leonardo’s appointment is a positive decision IMO. Hopefully we can get Conte, too.

I don't think Conte will be a possibility for now, I read that he wants a break and to settle his legal dispute with Chelsea, but if Rino has a sub-par season, I can see Conte replacing him.

As for Leonardo, I like the moves he made with PSG, but he won't have that kind of budget to work with at Milan. He's definitely got a great eye for talent, not to mention great connections. I don't know if he'll actually be the sporting director though. I've just been reading the director of the technical area. Whatever that means.

A lot of talk of Gazidis coming in as well and Gandini is also almost confirmed. Plus Maldini is supposedly in talks too. So they're definitely planning to build a very strong sporting and business minded group of people to manage the club.

If Leonardo is the new SD, I can't see Rino staying. They had a massive fall out as player and coach, and later when he quit to join Inter it just got worse. There are stories they've put it behind them, but I'm really not sure.

We'll see.

Lot's of stories about Conte today

I don't want to see us burning another bridge with a former player of the stature of Rino, but a shot at Conte is too good to pass up

They are replacing the entire management team, a plan will follow ...

True, but they are not going to "extract value" unless there is value to extract. So they will focused on "creating value" (or at least not "destroying value"). And you have to assume they have good "business sense". All of this is good news AFAIAC.

You could argue that we burned bridges with Leo, and yet ...

True.

Leo denied the Conte stories, but they won't seem to go away.

I think if there is any shot at Conte this season, Elliot will want Leonardo to take it.

They want instant CL, it's part of their 3 year plan to increase the value of the club, without it we'll continue to fall behind. Rino, unfortunately is a gamble, whichever way you look at it. Conte will provide certain guarantees imo, so going by what I assume is Elliot's MO when doing business, if they have a shot, the won't hesitate and won't let any sort of sentiment get in the way of that.

Hopefully we can still retain Rino if it were to come to that