AC Milan escapes FFP ruling with just suspended European ban

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AC Milan has escaped harsher Financial Fair Play punishments with the ruling handed down by UEFA on Friday. The European governing body announced that Milan’s punishment is highlighted by a one-year European ban in the 2022/23 and 2023/24 seasons, but that punishment is suspended and will not be imposed unless the club fails to break even over the course of the next 2.5 seasons through June of 2021.

UEFA also included a $13.5 million “fine” plus a European play squad restriction, both of which are imposed immediately. AC Milan will have that monetary sum withheld from its total European tournament prize haul, and the club will be restricted to a 21-player squad in Europe for the next two full seasons. The squad restriction is probably the harshest part of the punishment, leaving them with less wiggle room than the usual 25-player submission to account for injuries and mid-tournament player transactions.

Milan also escaped without a transfer ban, another possible punishment for clubs who breach Financial Fair Play rules.

The decision comes after UEFA handed down a rigid two-year European ban last summer, but the club appealed the decision to the Court of Arbitration for Sport and won. The Court’s decision, which came this past July, said that the club’s finances had greatly improved under new ownership, and as such, they required a “proportionate disciplinary measure.”

The new ruling says the club can again appeal the decision, if they wish.

Milan was initially flagged for breaching FFP rules after spending a massive $200 million in the summer of 2017 under Chinese owner Li Yonghong, bringing in players like Leonardo Bonucci, Andre Silva, Hakan Calhanoglu, and Lucas Biglia, among others. Yonghong was forced to sell after he failed to make a loan payment, and the club was taken over by U.S. hedge fund Elliott Management Corporation.