Alarm at Pulisic's Milan! They Could Miss Out on Europe Next Season
If it is confirmed that the transfer of ownership of the club between the US funds Elliot and RedBird was not carried out legally, AC Milan risks facing both financial and sporting sanctions, which could affect both Serie A and UEFA, potentially excluding them from European competitions.
"If Milan has lied, hiding ownership that does not correspond to what they claim it is, the club could be sanctioned with exclusion from UEFA competitions, financial penalties, or reaching an agreement with UEFA (not signing players in a transfer window, not spending beyond an agreed amount...)," stated lawyer Angelo Cascella, an expert in sports law and a former member of the European Court of Arbitration for Sport (CAS).
The trigger: Milan and potential Arab investors
It all started this Tuesday when the Italian Finance Guard (financial police) raided Milan's headquarters in search of documents confirming the transfer between the two investment funds, now in doubt, as everything points to Elliot Fund still maintaining control of the team.
"It seems that there are Milan documents used to attract Arab fund investors. And they could be a kind of acknowledgment of Elliot Fund's ownership, not RedBird's current fund," the expert noted.
"Many of the members of Milan's board of directors are the same as before, with Elliot. The company in charge of communication is the same. Furlani, the current CEO of the club, was on Elliot's board of directors," Cascella pointed out.
"All these aspects together suggest that the sale may be fictitious, simulated. This is, however, just the beginning. Everything needs to be seen, verified," he emphasized.
The hypothesis being investigated by the Milan Prosecutor's Office is the crime of "obstruction of the supervision activity" of the Italian Football Federation (FIGC) regarding the legal requirements of the companies owning football teams, as they may not have correctly reported their change of ownership.
The Italian Football Federation, facing another potential 'Juve Case'
"The FIGC will now open a file in which it will have to investigate and request all the documents from the prosecutor's office, which will serve the FIGC Prosecutor's Office to assess whether there have been any illegalities," explained Cascella, adding that ordinary justice will follow an even longer path than sports justice.
The articles of the Sports Justice Code (SJC) that Milan may have violated are 32.5, 20, and 4.
"The rules provide that the main issue is the breach of Article 32 and the simulation of a sale for which Elliot remains the owner," said Cascella.
"If the company (Milan) does not correctly report its structure, in bad faith, it receives a penalty. This could include financial fines and/or point deductions (Serie A)," the lawyer asserted.
Article 20 bis of the SJC also states that "information on shareholdings must be correct," so both sporting and financial penalties could be imposed.
And Article 4 of the SJC, for which 'Juve' was sanctioned last season, speaks of "loyalty and honesty": "Everyone who signs up to the SJC must be loyal and honest. 'Juve' was convicted for lack of loyalty and honesty and had 10 points deducted," Cascella recalled.
UEFA, multiple ownership comes into play: Elliot owns Lille
In UEFA terms, there are two key articles, 4 and 5.
Article 5 refers to multiple ownership, as a team cannot have two teams registered in the same competition. Lille and Milan competed in the Europa League this season.
"And Article 4, even more important: competition procedures and admission. If Milan has lied, hiding ownership that does not correspond, the club could be sanctioned with exclusion from competitions, financial penalties, or reaching an agreement with UEFA (not signing players in a transfer window, not spending beyond an agreed amount...)," Cascella pointed out.
The potential sanctions, both from UEFA and FIGC, will not come in time for this season if irregularities are confirmed.
"Timing is important, and the path ahead for Milan has only just begun; it will be a lengthy process, and if sanctions are imposed due to proven irregularities and wrongdoing, they will be for the next season," commented the expert.
Furthermore, the Italian ordinary justice system will act independently, and at that point, the sanctions could be different; Milan might even be found guilty of a sports offense rather than a criminal offense.
