AC Milan face European ban after Brazilian club allege unpaid transfer compensation



AC Milan face heavy sanctions, including possible expulsion from European competition next season, after Brazilian club Botafogo filed complaints to UEFA and FIFA over unpaid transfer payments.

The allegations relate to the transfer of Sergio Luiz Ceregatti from the Campeonato Paulista club to the Italian giants in 2010, with Milan apparently owing £254,000 in overdue training compensation.

Training compensation is a FIFA-recognised means of recompensing clubs that developed a player between his 12th and 21st birthdays and is a standard payment in many transfers.

Compensation row: AC Milan, who play at the San Siro, could face a ban from European competition next season after Brazilian club Botafogo alleged non-payment of compensation for their youth player Sergio Luiz Ceregatti

Uefa's Club Licensing and Financial Fair Play regulations state that clubs seeking a licence to play in the Champions League or Europa League must have 'no overdue payables that refer to transfer activities that occurred prior to the previous 31 December.'

Botafogo claim that Ceregatti spent four years in their academy between those ages before joining Milan, seven-time winners of the European Cup.

Milan contest that the compensation should be restricted to the £52,205 they paid in May 2011 following an earlier challenge by the Brazilian club.

The case is currently before Fifa's Dispute Resolution Committee, with their decision delayed by Milan's failure to submit supporting documentary evidence translated into one of their four official languages.



Resolution: The case is currently before Fifa's Dispute Resolution Committee, though the verdict has been delayed because Milan filed documents in the wrong language

Milan have until April 17 to translate the material.

A UEFA spokesman said: ‘When we receive a complaint we submit the complaint to the national association concerned so they can take this complaint into account while performing their own club licensing assessment.

'It is up to the national associations to check whether the clubs have fulfilled all their obligations on training compensation, solidarity contributions or transfer fees in due time.

‘We become involved if those clubs have qualified for our competitions and if those clubs have received a license from their national association.



'Then, according to Financial Fair Play, those clubs would have to report to us about their obligations.



Seven-time winners: AC Milan have lifted the European Cup on seven occasions, the latest of which was in 2007

'We would cross check the complaints we have received with the information submitted to us by the club to determine whether the license had been correctly granted.’

Milan refused to elaborate further on the case.

'It is currently open before FIFA Dispute Resolution Chamber a claim lodged by Botafogo against AC Milan in relation to the payment of Ceregatti training compensation,' said director Lorenzo Cantamessa.