MILAN (Reuters) - UEFA has asked AC Milan for more information about the club’s business plan before deciding whether to take action for possible breaches of Financial Fair Play (FFP) rules, sources at the Italian soccer club said on Tuesday.
Under the UEFA regulations, any European soccer club who spend more than their generated revenue face possible sanctions, including, in certain circumstances, a ban from playing.
However, Milan have asked UEFA to exercise its right to waive the FFP rules after Chinese entrepreneur Li Yonghong bought the club from Italian holding company Fininvest, and have presented a business plan to support their request.
Last summer Milan, seven-times European champions, spent about 230 million euros (£204.06 million) on new players, which is likely to have an impact on their financial results this year and next. The club reported a 33 million euros loss in the first six months of this year.
“A request for clarification on the economic side has arrived,” one of the sources said, adding that UEFA had not yet decided whether to grant the waiver. A final decision is expected by the end of this year.
Fininvest, owned by the family of former Italian Prime Minister Silvio Berlusconi, finalised the sale of the team to Li Yonghong in a 740 million euro deal in April.
AC Milan, who are currently seventh in Serie A, are in exclusive talks with a single party for the refinancing of 308 million euros of the club’s debt, two shareholders said last week.
Reporting by Elvira Pollina; writing by Francesca Landini,; Editing by Neville Dalton