UEFA rejects Milan financial fair play deal bid

MILAN, Italy (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 (nearly US$250 million) on new players in the summer, there have been questions about the financial stability of the Chinese-led consortium that purchased the club from Silvio Berlusconi for US$800 million in April.

UEFA said "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 said "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.