The Rossoneri have been barred from taking part in the competition in 2019-20 by the Court of Arbitration for Sport, after breaching UEFA’s Financial Fair Play rules.
The seven-time European Cup winners have reached an agreement with UEFA that sees them officially withdrawn from the competition, despite finishing fifth in the Serie A last season.
A CAS statement reads: “The Court of Arbitration for Sport (CAS) has issued a Consent Award embodying the agreement reached between AC Milan S.p.A and the Union of European Football Associations (UEFA) concerning breaches of the UEFA Financial Fair Play Regulations by the Italian club.
“i. The Decision rendered by the Adjudicatory Chamber of the UEFA Club Financial Control Body in the case AC-05/2018 on 20 November 2018 (i.e. decision under appeal in the CAS 2018/A/6083 matter) is set aside.
“ii. The Decision rendered by the Investigatory Chamber of the UEFA Club Financial Control Body on 10 April 2019 (i.e. decision under appeal in the CAS 2018/A/6261 matter) is set aside.
“iii. The decisions referred to under item i) and ii) above are replaced by the following order: “AC Milan is excluded from participating in the UEFA Club Competitions of the sporting season 2019/2020 as a consequence of the breach of its FFP break-even obligations during the 2015/2016/2017 and the 2016/2017/2018 monitoring periods”.
However, they have again referred to UEFA’s financial watchdog again in April. That second FFP breach could have seen the club banned from Europe for two years.
UEFA has already suspended proceedings against Milan over FFP until after their appeal to the CAS decision from last year is resolved; that appeal is not set to take place before August 14.
As such, all three parties have now reached a compromise, which leaves European football’s governing body looking strong and shows that Milan are intent on balancing their books.
Under UEFA’s rules, clubs are not allowed to make losses of more than £27million over three seasons, a cap UEFA believed AC Milan breached between 2015-17 when they spent £200million on transfers; more spending followed in 2018.
Last December, Milan were warned that they must break even by June 2021 and had £10million in prize money withheld by UEFA.
Milan had been due to take their spot in the group stage, but will now be replaced by Roma; Torino are set to enter the qualifying stage.