The transfers of new AC Milan signings Leonardo Bonucci and Lucas Biglia have been put in limbo after financial institution ‘Banco BPM’ rejected the Italian giants’ financial guarantees.
The club signed Bonucci and Biglia last month for €42m and around €17m respectively but they have not been properly registered despite the fact that their contracts have been submitted to the Lega Serie A.
According to Calcio e Finanza, the 7-time European champions are reportedly struggling to access funds though Chief Executive Officer (CEO) Marco Fassone is adamant that the required bonds would be deposited by the August 11 deadline.
The report claimed that AC Milan approached one of their sponsors, Banco BPM, for help but they were not given any assurances.
Serie A clubs’ budgets are often in deficit which is why they obtain bonds from banks that’s offset against future revenues, property, assets or other things.
AC Milan are however in a difficult situation at the moment as almost all of their assets have been used as collateral for the loan they got from the US hedge fund Elliott Management to finance the takeover, which took place earlier this year.
These assets include next season’s television money, intellectual property rights – i.e trademarks -as well as 100 per cent of the company Milan Entertainment S.r.l.
Banco BPM has therefore told AC Milan to either look for an international bank to provide guarantees or transfer some of the assets from the Elliot deal to them.
According to FIGC’s COMUNICATO UFFICIALE N. 175/A, ‘any guarantees must come from a company holding an A3 rating with Moody’s, an A- with Standard & Poor’s or a Good rating with Agenzia A.M; or an equivalent rating from other global agencies’
In addition, August 11 is the deadline for bonds to be deposited for transfers completed by July 31. Failure to comply with this would mean that both Bonucci and Biglia would go back to the former clubs, Juventus and Lazio, and they won’t play until their situation has been resolved.