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AC Milan must break even by June 2021 or they will be banned from European competition, UEFA have ruled.

The Italian club have also had €12 million (£10.8 million) of their 2018-19 UEFA Europa League revenue withheld for breaking rules around financial fair play.

Per Football Italia, UEFA's full punishment additionally included a squad limit of 21 players for European competitions in 2019-20 and 2020-21. The usual maximum limit is 25 players.

The Times' Henry Winter provided the relevant section of UEFA's statement which outlined Milan's full punishment:

Milan were initially handed an immediate one-year ban from Europe after they spent £200 million on transfers in the summer of 2017 following a takeover by Chinese businessman Li Yonghong and failed to break even.

The seven-time European champions subsequently appealed to the Court of Arbitration for Sport, who overturned the ban and asked UEFA to issue a more "proportionate disciplinary measure."

Milan are now owned by United States hedge fund Elliott Management after Li failed to repay money owed to the company.

It has not been a good two days for the club, as they were knocked out of the Europa League on Thursday.

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Milan went into their final Group F encounter with Olympiakos knowing even a one-goal defeat would see them through to the knockout rounds. They ended up losing 3-1, with Konstantinos Fortounis' late penalty proving the hammer blow.

Milan are back in action in Serie A on Tuesday when they face Bologna. The Rossoneri sit fourth in the Italian top flight but are just one point ahead of Lazio, who play Atalanta on Monday.