Milan risks an economic and sporting sanction that could have repercussions on Serie A and leave it out of European competitions if it is confirmed that it did not legally carry out the transfer of ownership of the club between the American funds Elliot Management and RedBird (its new owner).
It all started this Tuesday, when the Italian Finance Guard (financial police) searched Milan's headquarters in search of documents that corroborated the transfer between the two investment funds, now in doubt, since everything
indicates that it is still the Elliot fund.
the one who maintains control of the team.
Elliot Management is the vulture fund managed by the well-known
Paul Singer
that became popular in Argentina after the famous conflict that detained the ARA Libertad in the port of Ghana for a couple of months.
He is the man investigated by Italian justice due to the possible "fictitious sale" of AC Milan.
Paul Singer, the billionaire chief executive of Elliott Management that embargoed Argentina, in the crosshairs of Italian Justice. Photo: Bloomberg
The trigger for everything would have been the appearance of a millionaire Arab group: "It seems that there are Milan documents used to obtain investors from Arab funds. And they
could be a kind of recognition of the ownership of the Elliot fund
and not the current RedBird fund," lawyer Angelo Cascella assured EFE.
"The members of Milan's board of directors are many of those who were in the old one, with Elliot. The company in charge of communication is the same. Furlani, current executive director of the club, was on Elliot's board of directors," Cascella pointed out.
Gerry Cardinale, founder of RedBird and new owner of Milan... or maybe he isn't. Photo: AP
"
All these aspects together make us think that the sale is fictitious
, simulated. This is, in any case, the beginning. It is necessary to see everything, verify everything," he pointed out.
The hypothesis that the Milan Prosecutor's Office (north) is working on is that of a crime of "obstruction of the supervisory activity" of the Italian Football Federation (FIGC) on the legal requirements of the companies that own football teams, since there would be no correctly communicated your change of ownership.
"If Milan has lied, hiding a property that does not correspond to what they say it is, the club could be sanctioned either with an exclusion from UEFA competitions; or with financial fines; or reaching an agreement with UEFA (not signing in some window, not spending more than an agreed amount...)", lawyer Angelo Cascella, an expert in sports law and former member of the European Court of Sports Arbitration (TAS), told EFE.
The Italian Football Federation, facing another possible 'Juve Case'
"The FIGC will now open a file in which it will have to investigate and ask the prosecutor's office for all the documents, which will help the FIGC Prosecutor's Office to assess whether there have been illegalities," explained Cascella, who added that ordinary justice will follow a path even longer than sports justice.
The articles of the Code of Sports Justice (CJD) that Milan could have skipped are 32.5, 20 and 4.
"The regulations provide that the main issue is non-compliance with article 32 and that there has been a simulation of a sale for which Elliot remains the owner," Cascella said.
"If the company (Milan) does not correctly communicate its structure, in bad faith, it receives a sanction. Financial fine and/or penalty points (Serie A)," said the lawyer.
Article 20 bis of the CJD also provides that "the information on corporate participations must be correct", so sporting and economic sanctions could be added.
And article 4 of the CJD, for which 'Juve' was sanctioned last season, speaks of "loyalty and honesty": "Every person who signs up for the CJD has to be loyal and honest. 'Juve' was condemned for the lack of loyalty and honesty and 10 points were taken away," Cascella recalled.
UEFA and timeshare: Elliot owns Lille
In UEFA code there are two key articles, 4 and 5.
The 5 refers to timeshare, where one owner (or team) cannot have two teams entered in the same competition.
Lille and Milan competed in the Europa League this season
.
Lille and Milan could meet in a European tournament belonging to the same owner. Photo: Reuter
"And number 4, even more important: procedure and admission to competitions. If Milan has lied, hiding property that does not correspond, the club could be sanctioned or with an exclusion from competitions; or with financial fines; or reaching a agreement with UEFA (not signing in any window, not spending more than a certain amount...)", Cascella pointed out.
The possible sanctions, both from UEFA and the FIGC, will not arrive on time this season if irregularities are certified
.
"Times are important and the path forward for Milan has only just begun, it will be a long process and, if there are sanctions because irregularities and crime are demonstrated, they will be for the next campaign," commented the expert.
Furthermore, the ordinary Italian justice system will act on its own and, when the time comes, the sanctions could be different;
even being found guilty of a sporting offense and not a criminal offence.
With information from EFE