Not complying with the rules of UEFA's Financial Fair Play might lead to Milan's suspension from next season's Europa League competition.
European football's governing body rejected the club's proposal to regulate their financial imbalance and the Italians are in danger of receiving a sanction in the following days.
"UEFA's decision surprised me and caused me bitterness," said the club's general manager Marco Fassone. "We will analyse the legal aspects of the decision, because it can cause very big damage to the image of the club."
UEFA are concerned both for the repayment of loans to Elliott Management and for the financial guarantees offered by club president Li Yonghong, a Chinese businessman who bought Milan from Silvio Berlusconi in April 2017.
Milan will have to return in October, 300 million euros, that they have received from loans, to the American fund.
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