AC Milan’s financial struggles are making headlines in Italy. Yesterday’s reports of Il Corriere della Sera and Repubblica claimed the Chinese court declared Shenzhen-based industrial company Jie Ande bankrupt, which consequently led to the state withdrawing his trading license. (READ MORE).
In addition to that, the public prosecutor of Milan has reportedly opened a file on Li regarding suspicious transactions concerning Bankitalia during his takeover of the club.
According to the reliable economic Italian paper Sole 24 Ore, chiefs of AC Milan have sent a letter to Rossoneri Sport (the company created by Yonghong Li to buy the club last April) demanding a payment of € 10 million by tomorrow. According to reports, AC Milan need to rack up € 35 million by the end of the season for the general management of the club.
Yonghong Li has two options now. On the one hand he could accept the help of Elliott Fund. The US management corporation has already revealed to be willing to finance the Rossoneri Sport for € 35 million and in this case, the club would go into administration controlled by Elliot. If Li decides to decline the offer instead, Elliott would have the opportunity to replace Mr. Li. If Li chooses this option, there could be various complicated legal developments: Rossoneri Sport could be considered in default, in the event Mr. Li did not return the sum within a certain time period. And Elliott would be total master of the situation.