November will be the month of truth for AC Milan owner Yonghong Li, as there currently are two outcomes of the situation.
The doubts regarding Yonghong Li’s financial strength could be loosened, which would see the club remain under Chinese ownership. However, it could also go the other way, due to the €303m loan from American hedge fund Elliott. In other words, Milan could soon be under American ownership.
In case this happens, then Paolo Scaroni could become the new president of Milan. The 70-year-old has been working as an intermediary between the current AC Milan management and Elliott. In fact, Paolo Scaroni is already a board member and a small shareholder of AC Milan.
By the end of November, according to the agreement between Yonghong Li and Elliott, the first tranche of the capital increase of €60m has to be paid back.
As Repubblica explains, one of the loan terms imposes on Milan not to accumulate losses and to keep the accounts in focus. Without investments from China, therefore, Elliott could take control of the club and hand over the presidency to Scaroni, although Fassone could remain in the club.
The November deadline will, therefore, highlight Yonghong Li’s financial solidity. Marco Fassone is in contact with American bank Merrill Lynch, in an attempt to refinance the loan. However, for that to go through, new members are needed to offer the US bank guarantees for a long-term loan, to be repaid within 3 years.