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UEFA said last month that AC Milan had not reached its breakeven point under its financial fair play regulations.
MILAN – The European Court of Football Arbitration on Friday overturned UEFA's decision to withdraw AC Milan from next season's competition, declaring the Italian club's finances to be over. Were improved after a recent change of ownership
last month, AC Milan did not reach its break-even point under the financial fair play regulations, adding that the club did not provide sufficient evidence of financial stability.
Since then, the American hedge fund Elliott Management has taken control of the football club of Chinese businessman Li Yonghong and promised to inject 50 million euros to help to stabilize its finances.
Elliott hailed the decision as "an important first step" in reviving the club
"This rehabilitation will not be a night project, and there is a lot of hard work for which Elliott is ready", said a spokeswoman.
Li bought the Serie A club last year of ancient Ita. Italian Prime Minister Silvio Berlusconi, with help from Elliott, then failed to repay the fund.
In a statement, the court said that UEFA was not able to consider some important elements at the time of its decision. the current financial situation of the club was now better, following the recent change of ownership of the club. "
He remanded the case to UEFA for" issuing a new proportionate disciplinary measure on the basis of the current financial situation of the club "
According to UEFA regulations, all Football club spending more than its revenue generated is punishable by penalties, including, under certain circumstances, the ban on participating in competitions organized by the governing body of European football.
Investors must share the financial burden of the deficit club which, according to one source, should have ended the fiscal year until the end of June with a loss of 75 million euros.
Separately on Friday, the Milan prosecutors have put Li under investigation for alleged false accounting, two sources having knowledge of the case.
The investigation concerns the information that the football club has published regarding the state of finances of Li, said one of the sources.
A third source added that the investigation was triggered by prosecutors who had been convicted by a Chinese court that had certified a company of which Li was bankrupt.
The Italian tax police also asked the club and the banks auditors and consulting firms, who played a role in the audit of the financial health of Li for the documents relating to the acquisition of Milan, said Ernst & Young, Deloitte, Rothschild and BNP Paribas, who did not comment immediately
. Li could not be reached for comment.
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