AC Milan faces UEFA financial fair-play penalties

Seven-time European champion Milan has run up losses of 255 million Euros ($300 million) in the last three seasons, way above the 30 million Euros permitted by the rules.

AC Milan faces penalties from UEFA after European football's governing body said on Friday it had failed to strike a deal with the Italian club over its spending.

AC Milan faces penalties from UEFA after European football's governing body said on Friday it had failed to strike a deal with the Italian club over its spending.

Seven-time European champion Milan has run up losses of 255 million Euros ($300 million) in the last three seasons, way above the 30 million Euros permitted by the rules that are designed to stop clubs from over-spending.

"After careful examination of all the documentation and explanations provided, the Chamber decided not to conclude a voluntary agreement with AC Milan," a UEFA statement said.

The key concerns focus on the takeover of the club by Chinese businessman Li Yonghong.

UEFA said: "There are still uncertainties in relation to the refinancing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder."