How Milan could afford all the transfers this summer, as explained by a reputed Italian economics expert -
SITUATION - Milan, to date, has no debts: all existing debts have been cleared at closing time. Those who have debts are the Rossoneri Sport Investment in Luxembourg, the company that controls 99.9% of the club's shares. The company has asked for a $ 320 million loan to the Elliott fund to buy the club. If no new sponsors arrived, however, Milan could have problems with liquidity: Fassone, in order to protect himself, is considering negotiating a credit line with the Goldman Sachs bank.
PURCHASES - The total cost of the ten purchases this summer amounts to 240 million. Deals for players bought from Italian clubs (Conti, Kessiè, Biglia, Bonucci) are payable in three years. The real outlay, therefore, is about 50 million, but is intended to rise in the event of a marquee singing coming from abroad, where the payment is made immediately and without re-commissioning.
DEADLINES - Within just over a year, Yonghong Li will have to return the 320 million to the Elliott fund. One solution could be the listing of the club on the Hong Kong Stock Exchange, but that might be a problematic solution. For this reason, it is crucial to qualify for CL, but also to seek new sponsors. Fassone could replace Elliott's loan with a long-term bank loan. Otherwise, Yonghong Li will be forced to sell Milan's shares to the Elliott fund, which will become the owner.
ELLIOTT - Elliott's goal is to buy companies in crisis to sell them better: the purpose of the fund is not to take over Milan, but to keep the team competitive so as not to devalue it.
BLOCKED FUNDS - Another possibility is that the limitations of the Chinese government, which block a considerable chunk of Yonghong Li's wealth, will shrink, become less rigid and severe, and releasing new resources, allowing the businessman to invest his own money heavily into the club.