UEFA have sent out a warning to clubs and associations by launching an investigation into AC Milan’s application with particular reference to repaying a loan due in October.
It has long been thought that UEFA were afraid to challenge the financing of the major clubs but the 2007 Champions League winners are about to discover differently.
The UEFA website reports:
The Investigatory Chamber of the UEFA Club Financial Control Body (CFCB) has decided to refer Italian club AC Milan to the Adjudicatory Chamber of the CFCB for breach of the Financial Fair Play regulations, in particular the break-even requirement.
After careful examination of all the documentation and explanations provided by the club, the CFCB Investigatory Chamber considers that the circumstances of the case do not allow the conclusion of a settlement agreement.
In particular, the CFCB Investigatory Chamber is of the opinion that, among other factors, there remains uncertainties in relation to the refinancing of the loan and the notes to be paid back in October 2018.
The Adjudicatory Chamber will make a decision on this case in due course.
The CFCB Investigatory Chamber will further communicate in June its other decisions in relation to the monitoring of the clubs under investigation or under settlement agreement.
There is debate on social media over whether Sevco qualify for a UEFA licence with the SFA due to nominate clubs on May 31.
In their last accounts the club admitted to owing £17.7m and have since taken on a £3m loan from Close Brothers.
During his last media conference to invited reports Dave King explained that he would continue to fund the company losses until they reach the group phase of the Champions League.
King also revealed that he had had to prove to the SFA that he had the funds to keep the club afloat on an on-going basis.
With the application of AC Milan under the spotlight the pressure is on the SFA to ensure that everything is squeaky clean from Ibrox or to put Kilmarnock forward for a place in the Europa League qualifiers.