Manchester City could face a Uefa ban from Champions League for a season

thestaggy

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May 11, 2011
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13,765
#41
Serie A is actually a good example of when foreign ownership goes bad.

AC Milan

From the very start, Yonghong Li’s takeover of Milan for €740m has been shrouded in controversy, confusion and very little clarity.

Chinese businessman Yonghong Li completed the takeover from Silvio Berlusconi on April 13 2017 for €740m, including €220m in existing club debt.

He had begun negotiations in August 2016, but was only able to secure the closing after numerous postponed deadlines thanks to a high-interest loan from US hedge fund Elliott Management Corporation of €303m.

With 11 per cent interest, this must be repaid in full for €380m in October 2018or the club goes to Elliott Management as one of his repossessed assets.

RAI programme Report found that a few months after the closing, Yonghong Li received another loan worth $8.3m from Teamway, a company based in the Cayman Islands.

David Webb, independent financial analyst for Webbsite.com, said the interest was “originally 14 per cent and has now gone up to 24 per cent. That means Mr Li’s situation is desperate if he was unable to find financing at more advantageous terms than that.”

The mere presence of Elliott Management in the deal already rang big alarm bells, because they are known as a ‘vulture fund’ – who loan money to corporations or even countries in serious financial crisis and then prepare to repossess their assets if they fail to keep up with payments.
https://www.football-italia.net/123529/history-milan-under-yonghong-li

Elliot Management has indeed assumed control of AC Milan and the former Chinese owner has gone to ground.

Inter Milan

Chinese-owned Italian club Inter Milan on Thursday dismissed reports that their finances were in such disarray they should be demoted from Serie A.

According to a report in Italian Financial daily, Il Sole 24 Ore, Inter are operating an imbalanced budget.

But in a statement, Inter said reports were “incorrect and misleading as well as harmful to the image of the club, which has fully adhered to Italian law and FIGC regulations.”

“Inter Milan would like to make it clear that its consolidated financial statements contain comprehensive data and information as required by the Italian Civil Code and legal and regulatory provisions relating to the financial statements of football clubs.”

Chinese businessman Zhang Jindong’s Suning group paid nearly 270 million euros for Inter in June last year.

But Il Sole reported that within the last financial year, the club’s total debt has risen to 637.56 million euros, which is almost 150 million euros more than the previous year.

A total 208 million euros is owed to banks, it was claimed, while more than 220 million euros needs to be paid back to shareholders
https://www.channelstv.com/2018/03/02/inters-milans-chinese-owners-dismiss-financial-crisis-claims/
 

thestaggy

Honorary Master
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May 11, 2011
Messages
13,765
#42
When the Sugar daddy (wealthy investor) pulls out of a club, the club end up bankrupt in a season or 2.
Like Rangers, Leeds, Parma and Lecce.
Leeds was different.

They were English-owned but just spent money they never had, banking on Champions League money to cover their outlay on assembling an expensive squad. Then they failed to qualify for the Champions League for two successive seasons, the debt calls came in and they couldn't meet them. Queue a fire sale of their best players, which ultimately wasn't enough, only serving to accelerate their slide down the table and make the debt repayments that much harder.

2002/03:
Rio Ferdinand; Jonathan Woodgate; Robbie Keane; Robbie Fowler and Lee Bowyer all out.

2003/04:
Harry Kewell and Olivier Dacourt out.

Then the 2004/05 massacre of their squad:
Paul Robinson; Alan Smith; James Milner; Mark Viduka; Ian Harte; Danny Mills and Dominic Matteo.

Basically sold their best match day XVI within three seasons.
 

rayven_king

Expert Member
Joined
Nov 1, 2012
Messages
1,240
#43
another one was Malaga who went from bottom half of the league to a champions league quarter final then relegated down to segunda division when FFP actually did its damn job. They played some good football too with Manuel Pellegrini coaching but they could sustain all those salaries once sugar daddy didn't want to spend
 
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