MILAN -- UEFA has rejected AC Milan's bid for an agreement to end a financial fair play investigation that threatens to derail the plans of the club's new Chinese owners.
While Milan spent more than €200 million (nearly $250 million) on new players in the offseason, there have been questions about the financial stability of the Chinese-led consortium that purchased the club from Silvio Berlusconi for $800m in April.
UEFA says "after careful examination of all the documentation and explanations provided" it decided "not to conclude a voluntary agreement."
Milan took a loan from U.S. private equity fund Elliott worth more than €300m.
UEFA says "there are still uncertainties in relation to the refinancing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder."
UEFA will assess Milan's finances again in early 2018.
Possible punishments include limits on transfer spending, player salaries, and squad sizes for UEFA competitions.