Milan president threatens legal action after money-laundering reports

Li Yonghong released a statement on Tuesday threatening legal action against outlets that accused Fininvest, the former parent company of AC Milan, of being subject to a money-laundering investigation.

Italian publications La Stampa and Il Secolo XIX claim ex-owner Silvio Berlusconi, his Fininvest group, and new Milan chairman Li Yonghong were being probed for an apparent scam that saw the club sold for €300 million more than it was worth. Li Yonghong notes the Public Prosecutor's Office has denied the allegations.

"AC Milan purchase process has always been carried out with the utmost transparency, compliance with regulations and correctness, with the support and advice of international financial and legal advisors," the statement on the club website reads.

"All procedures were followed in full compliance with the laws and practices in force. All financial institutions, sports organizations (sic) and authorities involved received the documentation, either required or requested, to assess and approve both the 'closing' process and the qualifications of the new Property now managing the Team."

The bewildering financial aspects of April's takeover by the Rossoneri Sport Investment group led to speculation that the club is on an uneven footing. The €740-million deal was ratified after the consortium borrowed €300 million from U.S. private equity fund Elliott Management, with €180 million set aside to help complete the transaction, the Guardian's Ed Aarons reported in August. The biggest chunk of investment will have to be paid back with 11.5 percent interest, and repayment of the entire loan is due in October 2018.

(Photo courtesy: Getty Images)

Despite an aggressive approach in the transfer market - Leonardo Bonucci, Andre Silva, and Hakan Calhanoglu were among a host of players expensively acquired last summer - Milan is positioned only 11th in Serie A, and is 12 points adrift of the Champions League qualification places. The club managed to reach the final 32 in the Europa League after finishing top of Group D, despite a harrowing last-day defeat to Croatia's Rijeka and a 0-0 home draw with runner-up AEK Athens.

At least Li Yonghong is showing some fight from the boardroom.

"What I have read these days absolutely does not reflect the reality of facts," he continued. "Therefore, while considering the Group that I chair, AC Milan S.p.A., and myself as injured party of this unfortunate and unacceptable media campaign based on speculations and misleading information, we reserve the right to take all necessary legal actions to protect at best the image, the reputation and the financial solidity of AC Milan and of the reference group."

The allegations threaten to derail former Italian prime minister and club chief Berlusconi's latest foray into country's political arena with his Forza Italia party.