So the not-at-all-swift hammer of UEFA’s version of justice
in Financial Fair Play (FFP) came down today, and came down hardest on Milan.
After months of talking
about “uncertainties” and warning Milan about the Elliott Fund debt,
their ruling instead focused primarily on the “break-even” requirement of FFP.
Their verdict was a two-year ban on European competition, with the second year
apparently provisional based on meeting FFP requirements. So basically, a two-year
ban. Amidst all of the rumors and uncertainties about a sale of the majority stake
in the club, this decision absolutely feels like judgment day.
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| More randomly punitive than fair |
Here is the actual ruling that they handed down today:
The Adjudicatory Chamber of the Club Financial Control
Body (CFCB), chaired by José Narciso da Cunha Rodrigues, has taken a decision
in the case of the club AC Milan that had been referred to it by the CFCB Chief
Investigator for the breach of the UEFA Club Licensing and Financial Fair Play
Regulations, in particular the break-even requirement.
The club is excluded from participating in the next UEFA
club competition for which it would otherwise qualify in the next two (2)
seasons (i.e. one competition in 2018/19 or 2019/20, subject to
qualification).
This decision may be appealed to the Court of Arbitration
for Sport, in accordance with Article 34(2) of the Procedural rules governing
the UEFA Club Financial Control Body, as well as Articles 62 and 63 of the UEFA
Statutes.
The full reasoned decision will be published on UEFA.com
in due course.
So their focus on the “break-even requirement” is the last
three years of Berlusconi and Galliani. Which is what Milan were referred to
UEFA for in the first place. Even though they said all along that it was the
Elliott Fund debt and the “uncertainties” that made them deny us first a voluntary
agreement, then a settlement agreement. But if it’s primarily the “break-even
requirement” that we are being punished for, then why did they not give a
similar judgment to Roma and Inter, who have had similar losses in recent
years, but only given slap-on-the-wrist punishments?
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| The gifts that keep on giving |
Why did UEFA drag our club’s reputation and the reputation
of our owner through the mud based on “uncertainties” when all along, it was the
years of financial transgressions of Berlusconi and Galliani that they
were going to punish us for? They are long gone, and already have begun to cry
innocent, leaving the reputation and financial certainties of the club to be
sullied for things that happened in the past. Literally, this ownership and the
new players all came into this situation after all of that happened, they have
nothing to do with it, but are the ones being punished for it.
The two year sentence is reportedly provisional, based on Milan
making FFP compliances for the second year. Exactly which compliances we are
supposed to make I assume are forthcoming in their explanation. But it begs the
question, how are Milan supposed to make FFP compliances within a year when
this decision pulls us out of the competition we qualified for, likely impacting
our current roster and possibly our mercato? How do we maintain our sponsors
that we have, let alone gain new sponsors? There was an offer on the table to
purchase a majority share of the club. Who would buy a club that has
effectively just received a one year financial prison term with one year
parole? This decision cripples all of our efforts to become compliant with FFP,
yet the second year reportedly depends on us being compliant. How does that
make any sense?
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| UEFA have done so much more to harm than to help the new ownership |
Which brings me to the biggest question of all: If the
purpose of FFP is to help clubs remain solvent and maintain healthy balance
sheets, then how does this ruling help anyone? With the change of ownership and
the potential change yet again, how does punishing the new ownerships for past
indiscretions of the previous owners help Milan? The very purpose of the
voluntary and settlement agreements was to help the new ownerships be aware and
climb out of the financial pits dug before their time. But this is like UEFA
pushing Milan down the well that Berlusconi & Galliani dug previously. How
on earth can anyone dig out of the hole they just made deeper for us?
There will be an appeal from Milan, of course. And a
potential change in ownership, if it happens quickly, could very well see us
win that appeal. But with UEFA handing down this judgment that is not
consistent with other previous judgments, it’s impossible to believe that even
that is probable. The paperwork and formalities aside, UEFA have done more to
damage Milan’s reputation than winning an appeal could ever compensate for.
They have also set a new precedent of unfairness within FFP. But the most
damning part of their actions is that with this judgment, they have gone from a
governing body whose purpose it is to keep clubs financially healthy to an
oppressive hierarchy which truly financially punishes clubs who are showing
good faith. With this ruling, UEFA’s FFP committees have become all-powerful
and all-punishing, while clubs like Milan are shown no mercy and cannot depend
on any kind of consistency in punishment. It truly is judgment day.
This post inspired by the music of
Rammstain’s “Bück Dich”