The Chinese Milan leaves huge debt for Elliot
The Chinese management of AC Milan was a total disappointment from all points of view, financially and sporting especially.
The era of Yonghong Li was short but… disastrous. It is no coincidence, the new Rossoneri ownership is still dealing with the mismanagement of Fassone and associates. Fortunately, however, as highlighted by Tuttosport this morning, with the closing of the 2017-2018 season budget report, the curtain falls for good on the Chinese Milan.
The legacy left by Mr. Li is simply horrendous: a record loss of 126 million euros, an increase of 53 million compared to the previous year, determined by several factors: higher amortization and depreciation of long-term rights to football players’ performance, higher costs for registered and non-registered personnel, higher financial burdens, less revenue from sponsorship.
The red balance sheet, reports Tuttosport, also contributed to the devaluation (at about 20 million) of Carlos Bacca and Nikola Kalinic. The previous ownership apparently lacked the proper prudence to guide a club like the Rossoneri.
The intervention of Elliott, therefore, was fundamental, above all with the 170.5 million recapitalization that took place between August and September and with which the two bonds issued to the Third Market of the Viena Exchange were repaid. AC Milan closed the 2017-18 financial statements with a negative shareholders’ equity of 36 million, while revenues increased from 212 million in the previous year to 255 for the 2017/18 season.
