Milan flies in the league, but in China the financial troubles are getting more and more serious. On the columns of Corriere della Sera, Milena Gabbanelli returns to the charge against Li Yonghong, president of the Rossoneri club, and lifts the veil on the latest bad news coming from Asia, where the Shenzhen People's Court has officially declared the bankruptcy Jia Andes, company controlled by the 48-year-old Chinese businessman who owns AC Milan.
The company - which was accredited as the most important and liquid among those within Yonghong Li's assets - was pending a liquidation request for bankruptcy. What worries Marco Fassone, CEO of Milan, is that Jia Ande was already insolvent at the time of the purchase of Milan by the Chinese group, but none of the financial analysts and banks noticed it (perhaps deliberately).
On 5 August 2016 Fininvest, parent company of Silvio Berlusconi's empire, signed the preliminary sale agreement for 99,93% of Milan to the Sino-Europe Sports fund represented by Mister Li and partner Han Li. The closing came a year later, in April 2017, for a figure that was around 740 million. Within a year, however, conditions had changed: Yonghong Li could no longer rely on initial investors due to already unclear financial assets, and the Chinese government had blocked the export of capital abroad. For this reason, the Chinese tycoon has decided to change course, relying on the American fund Elliot - in recent days interested in the Vivendi affair – for a loan of 300 million, with an interest rate of 11,5% to be paid in October 2018.
In recent months also the authoritative New York Times had focused the spotlight on Yonghong Li's financial system. AC Milan's business plan envisages a dizzying growth in revenues within five years, thanks to the exploitation of the profitable Chinese market and the achievement of the Champions League, a competition that would bring important revenues in terms of advertising and television contracts.
The receivership following the bankruptcy of Jia Ande does not weigh in any way on the Rossoneri club, but it contributes to undermining the already shaky credibility of the much-discussed Mister Li. Obviously, following the rules of bankruptcy law provided by the Chinese system, now Li's assets will be attacked by insolvent creditors.
Meanwhile, the Rossoneri club continues to maintain its usual line, reassuring shareholders, board members and fans: the future of Milan, according to the club, is rosy. It is not excluded that the Elliott Fund could once again come to the rescue of Mr. Li (with a new loan of 35-40 million), to buffer any liquidity outflows caused by the bankruptcy of Jia Ande or even to support the club with appointments monthly in front of the UEFA financial commission, vigilant on every move of the Milan house.
The reporter of Courier seems to be convinced that the whole negotiation could be a set-up with speculative and financial implications. There are many rumors about Milan's future. The most mischievous towards the phantom Chinese consortium, which arrived to bring the club back to its past glories, argue that Yonghong Li is only waiting for the best conditions to leave the club early, trying to ensure compliance with the registration parameters for the next national and international competitions. international.
If, as some sources close to the Rossoneri club state, a new capital increase by the US fund is expected next week, the hypothesis of effective "protection" by Elliott is gaining ground, with the simultaneous presence ( only formal) by Mister Li.
The future of Milan appears in the balance. It is not fair to discredit Berlusconi's entire operation with the Chinese in absolute terms, but there is clearly a need for clarity on all fronts. There are those who are already talking about Arab and Russian investors ready for a takeover. For now, these are just rumors.
Next 30 June Marco Fassone will have to present the balance sheet for the current year to the assembly. What is certain today are the 230 million spent on the summer transfer market to re-found the team and the media chaos surrounding Mister Li.
