Italy probes AC Milan sale for cash laundering



Berlusconi with among the trophies received by AC Milan earlier than the sale to a Chinese group

An Italian newspaper mentioned Italian prosecutors have begun a probe into whether or not the deal to promote AC Milan to Chinese buyers final 12 months was inflated for money-laundering.

La Stampa reported on Saturday that Milan prosecutors wish to know if the 740 million euros ($786 million) paid to Silvio Berlusconi to purchase out the seven-time European champions was overvalued in a deliberate transfer to carry massive sums of cash into Italy from overseas, the newspaper mentioned.

It has not instantly been doable to substantiate the opening of the investigation with Milan prosecutors or attorneys for Berlusconi, the previous Italian prime minister.

After greater than 30 years within the arms of Berlusconi, a wonderful interval which noticed the membership win 29 trophies together with 5 European Cups, Milan had been offered on April 13 final 12 months to a gaggle of Chinese buyers led by Li Yonghong.

The consortium took 99.93 p.c of the membership’s shares and in addition purchased out its debt, which stood at 220 million euros on June 30, 2016.

But the variety of buyers has progressively diminished within the face of difficulties in getting the funds out of China, the place more durable laws on the motion of cash overseas was not too long ago launched.

Li was pressured to arrange his firm in Luxembourg and acquire monetary assist from the US funding fund Elliott with a view to push the deal by.

Elliott agreed to lend greater than 300 million euros, however at rates of interest of as much as 11 p.c and with full reimbursement inside 18 months, based on Italian media.

Milan lavished massive sums on new signings previous to this season however the Rossoneri are struggling in 11th place in Serie A, 23 factors behind leaders Napoli.