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milanist
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Re: Finances

23 Oct 2017, 23:49

Berlusconi: ‘Milan have financial problems’

Silvio Berlusconi warns “there are already some financial problems” at Milan, and says “I’m worried by Mr Li’s silence”.

The former President sold the club to Yonghong Li in April, and a major summer transfer campaign followed.

However, the purchase of the club was funded by US hedge fund Elliott Management, who will take control of the Rossoneri if their loan is not repaid.

“I know there are already some financial problems,” Telelombardia quotes Berlusconi as saying.

“I’m worried by Mr Li’s silence. If the team continues to do so badly then it’s possible the Elliott fund will take over in the spring, but the real problem is they’ll be over €100m in the red without the Champions League.

“Whoever would buy the club certainly wouldn’t have to pay much compared to its real value, but they’d have to heal it after some very heavy years.

“It’s not a nice prospect.”

https://www.football-italia.net/111763/ ... s%E2%80%99
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milanist
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Re: Finances

25 Oct 2017, 11:36

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milanist
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Re: Finances

25 Oct 2017, 14:00

milanist wrote:

http://www.4-traders.com/JIN-BAO-BAO-HO ... -25020311/
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milanist
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Re: Finances

31 Oct 2017, 19:40

Report: Milan make €32m loss

It’s reported Milan made a €32.6m loss in the first six months of 2017, a slight improvement on last year.

The Rossoneri were taken over by a Chinese consortium led by Yonghong Li in April, and they decided to switch the accounting period to cover the football season.

As a result, the club’s accounts will now cover July 1 to June 30 every year, with a shareholders’ meeting on November 13 to approve the accounts from January 1 to June 30, 2017.

Reuters states that it has seen these documents early, and that they show a loss €32.6m, a slight improvement on the first six months of 2016.

The financial year for 2016 ended with a €75m loss.

However, a big summer transfer campaign will see a bigger loss at the end of the season, as Reuters reveals in a quote from the documents.

“The transfer campaign resulted in a negative balance of €126.5m for the fiscal year 2017, as a result of the investments made in this period,” the financial report says.

The takeover by Li’s group was funded by loans from US hedge fund Elliott Management, who can take control of the club if they aren’t repaid.

As a result, the club will seek “renegotiation of the financial debt expiring in 2018”, with an announcement that “discussions with some financial institutions have begun, and the directors are confident that they can finalise the refinancing of the financial debt, as part of a more complex operation involving the refinancing of the debt of Rossoneri Sport Investment Luxembourg”.

Rossoneri Sport Luxembourg is the name of Yongong Li’s company, which received €180m from Elliott to finance the takeover, with an interest rate of 11.5 per cent.

There was also a €74m intercompany loan used to repay previous holding group Fininvest and, in turn, the banks which carries an interest rate of 7.7 per cent.

The accounts also show a third loan from Elliott, at 7.7 per cent, of €54.3m to fund the summer transfer campaign. That had been completely used when the accounts were drawn up on October 11.

Milan plan to improve the financial outlook through “commercial development in the Asian market”.

Yonghong Li signed a capital increase of €60m, but so far has made payments totalling €27m, including €5m paid in early September.

Li has confirmed his commitment, with extra funds to arrive through recapitalisation, which can be increased by a further €60m if the expected revenues from Asia don’t arrive.

http://www.football-italia.net/112132/r ... AC32m-loss
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milanist
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Re: Finances

02 Nov 2017, 00:03


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milanist
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Re: Finances

09 Nov 2017, 00:44

Milan to present UEFA plans

Milan will present their proposal for a voluntary agreement regarding Financial Fair Play to UEFA tomorrow in Nyon.

The Rossoneri were bought over by a Chinese consortium led by Yonghong Li in April, at which point they proposed a voluntary agreement to meet FFP.

This provision is available for new shareholders, but European football’s governing body has to accept that there is a viable business plan to balance the books over the next four years.

The plans will be submitted to UEFA tomorrow, with CEO Marco Fassone set to be accompanied to Nyon by Han Li, right hand man of owner Yonghong Li.

According to Premium Sport, the club is optimistic that UEFA will sign off on the plans, and come to a voluntary agreement with the Rossoneri.

http://www.football-italia.net/112518/m ... uefa-plans
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milanist
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Re: Finances

09 Nov 2017, 11:36

Milan to submit FFP plans

Milan will today submit their proposal for a Financial Fair Play settlement to UEFA in Nyon.

The Rossoneri were taken over by a Chinese consortium in January, and as a result they have the opportunity to extend their FFP responsibilities over four years, to give the new investors time.

However, they must still submit realistic plans to become profitable or face sanctions from European football’s governing body.

The Diavolo are the first European club to apply for such an agreement, and CEO Marco Fassone will submit the plans in Nyon today.

Gazzetta dello Sport expects that as a result UEFA will be cautious with the proposals, as Milan will become seen as an example to point to regarding this aspect of FFP.

Nonetheless, the 150 page documents which will be submitted today does see the Rossoneri fall within the rule that the difference between revenue and outgoings must be less than €30m.

The revised plans show a negative of €26m on that score, compared to the accounts which were submitted and then withdrawn in June.

That plan was seen as being overly ambitious, with forecasts of a tripling in revenue produced by the Chinese market.

Now the plans show a more modest income from China of €30-40m by the end of June 2018, the end of the financial year.

UEFA are also likely to be encouraged by the fact that the document shows a number of scenarios to balance the books, with Plan A being Champions League qualification, Plan B Europa League and so on.

European football’s governing body will have until just before Christmas to respond to the plans, but it’s expected to act much more quickly than that.

There is cautious optimism that the plans will be accepted, but Milan could also be fined a maximum of €20m if they’re deemed to have breached Financial Fair Play rules.

Gazzetta believes the new owners would look to share that fine with previous owners Fininvest, though it’s not clear if Silvio Berlusconi, the former President, would actually be willing to do that.

There is also optimism about paying back the loan from Elliott Management, due in October.

It’s expected the Chinese ownership will take out a bigger bank loan, but one which can be repaid by 2023 to pay the hedge fund.

http://www.football-italia.net/112547/m ... -ffp-plans
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milanist
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Re: Finances

09 Nov 2017, 18:24

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milanist
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Re: Finances

11 Nov 2017, 12:08



:thumbsup: :thumbsup:
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naraku
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Re: Finances

12 Nov 2017, 06:56

I might just be an over hopeful fan, but I believe what's all financing issues are resolved and Yonghong Li truly owns Milan, then we can become a bigger power. We'll end up on par with Real, Barca, Man U.
The Chinese seem to have big plans and clear ideas on how to build AC Milan and we certainly have the supporter base in China and the rest of Asia to really grow. Of course we need results on the pitch too, but that's another matter.
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milanist
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Re: Finances

15 Nov 2017, 08:13


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milanist
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Re: Finances

15 Nov 2017, 08:15

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Re: Finances

16 Nov 2017, 14:44

Accoring to Il Corriere dello Sport, the new investment fund that will refinance AC Milan's debt to the Elliott group, would be Highbridge, with an agreement about 8 weeks. Highbridge is a big international foundation based in Hong Kong and New york " will function as a bridge to get Milan out of their deep debts, known as Highbridge are in contact with Milan's advisors to study the restructuring of the club's debts."
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milanist
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Re: Finances

16 Nov 2017, 15:34

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milanist
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Re: Finances

16 Nov 2017, 15:40

Report: Milan agree refinancing deal

It’s reported Milan have agreed a deal to refinance their loan from Elliott Management, though with a higher interest rate.

The Rossoneri were taken over by a Chinese consortium in April, financed by a loan from the U.S hedge fund.

Under the terms of the deal, if the €303m - circa €350m with interest - isn’t repaid within a year Elliott can take over the running of the club and sell their assets to get their money back.

As a result, owner Yonghong Li and his Rossoneri Sport Investment group have been looking to refinance the deal, and Corriere della Sera reports a deal is close with Highbridge, owned by JPMorgan Chase.

An eight week exclusivity deal has been agreed for due diligence, on a plan which would see the debt refinanced and paid over five years.

The new financing deal would be worth around €400m, with €250m falling on Rossoneri Sport Investment and €150m on the club.

In addition, there is the possibility of accessing a further €100m in the future if the club meets the targets set out in the business plan they’ve submitted to Highbridge.

The business plan is conservative in terms of sporting results, banking on the Europa League rather than the Champions League, but there are more ambitious targets for growth in China.

The deal has been in the works for some time, so there is confidence that an agreement can be signed before the eight week deadline.

If the deal is done, it would remove the spectre of Elliott from over the new owners and allow them more time to pursue their sporting and financial goals.

https://www.football-italia.net/112879/ ... ncing-deal
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