US hedge fund Elliott announces takeover of AC Milan

MILAN: US hedge fund Elliott announced it has taken over Italian giants AC Milan after the club’s Chinese owners failed to repay debt, saying the deal opened “a new chapter” for the football institution.

Elliott Management pledged to inject 50 million euros ($59 million) to bring financial stability to the seven-time European champions after Chinese owner Li Yonghong missed a Friday deadline to repay 32 million euros.

Elliott’s founder and coCEO Paul Singer said his fund “looks forward to the challenge of realising the club’s full potential and returning the club to the pantheon of top European football clubs where it rightly belongs”.

In the statement from Elliott, Singer added: “Financial support, stability, and proper oversight are necessary prerequisites for on-field success and a world-class fan experience.”

The changes at the top come as the club faces a ban from next season’s Europa League for failing to respect the break-even requirement in European football governing body UEFA’s Financial Fair Play (FFP) rules.

FFP regulations say that any football club in Europe spending more than its generated revenue could face sanctions.

In a statement from May 22, UEFA expressed doubts at Milan’s ability to refinance loans from Elliott due to be repaid in October.

Milan are appealing UEFA’s decision at the Court of Arbitration for Sport (CAS), which is expected to announce a final ruling on July 19.

Milan splashed out over 200 million euros on players last summer but finished sixth in Serie A and failed to qualify for the more lucrative Champions League. - AFP