New twist in Milan takeover

By Football Italia staff

The Milan takeover is getting more complex, as Sino-Europe Sports is disbanded, making Yonghong Li the sole owner funded by several different loans.

The conglomerate had been set up to bring together numerous Chinese and Asian investors who were aiming to buy up the club from President Silvio Berlusconi and his holding company Fininvest.

As there were more and more delays to the closing, which was originally meant to be last year, it became apparent the investors were also dwindling.

Now it’s reported Sino-Europe Sports has been shut down and replaced by a new offshore holding company, Rossoneri Sport Luxembourg.

Chinese banker Yonghong Li is the only shareholder now and will finance the takeover of Milan using a variety of loans funnelling cash out of China through offshore accounts, the most recent being in the British Virgin Islands.

Il Sole 24 Ore – the Italian equivalent of the Financial Times – notes that he has approached US hedge fund Elliot Management Corporation.

They are expected to provide €180m to both meet the deadline for another deposit and complete the closing by April 14.

However, this situation is definitely not what Berlusconi signed up for, nor promised to fans when he said the club would be left in safe hands.

While city rivals Inter have giant Suning Group able to finance the club, Milan are going to be propped up by a series of loans to different offshore companies using loopholes to avoid a clampdown by the Chinese Government on unauthorised funds leaving the country.

Even if Yonghong Li does manage to complete the takeover, how is he going to get guaranteed access to money for transfer fees or improved contracts to the likes of Gianluigi Donnarumma, Giacomo Bonaventura and Suso?

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