Yonghong Ligetty images
Italian daily Corriere della Sera claimed AC Milan Owner Yonghong Li is "bankrupt and that his assets will be auctioned off on Taobao," according to CALCIO MERCATO. Taobao is the Chinese equivalent of Ebay and "this is not the first time that investigations have found the patron to be devoid of funds. The China Securities Regulatory Commission declared that an investigation is underway into illegal practices from his holding company Shenzhen Jie Ande. Li bought the club for around €740M last year. He had to "take out a huge loan" from hedge fund Elliott Management in order to complete the sale and reports claim that "not only can he not repay that loan, but he is also being sued by two banks for unpaid debts which has led to his assets being sold to the highest bidder on Taobao." Packaging company Zhuhai Zhongfu has been valued at €60M ($74.4M), of which Li’s holding company owns just under 12%. The "most disturbing finding" in the report, however, is the fact that Li was "already insolvent by the time he took over full control of the club last April" (CALCIO MERCATO, 2/19). FOOTBALL ITALIA reported former AC Milan CEO Adriano Galliani belives Li provided "all the necessary credentials" to prove his financial stability. Galliani: "Yonghong Li invested €740 million to buy Milan. We were assisted by a very important advisor and a famous law firm, as was Yonghong Li. Not only did he buy Milan, but another three important things happened. First of all, he presented the credentials to the Lega Calcio and was approved. Secondly, the Elliott fund loaned Mr. Li over €300 million, so they must've made their own evaluations. Finally, over the summer, a transfer campaign worth €200 million was completed, giving all the necessary financial guarantees and bank bonds that the Italian rules demand. I don't know the reality of what is happening in China, but one plus one plus one makes three, so that's how things have gone so far" (FOOTBALL ITALIA, 2/19).
