An investigation into the finances of Yonghong Li, owner of AC Milan, has found that he is bankrupt and that his assets will be sold at auction.
Yonghong Li had just recently closed a deal to buy the Rossoneri last year for around €740 million. At the time Li had to take out a loan to finance the deal and it has now come to light that he will be unable to repay his debts when they are due.
An investigation launched by Corriere della Sera discovered that Yonghong Li is bankrupt and was ordered to sell his assets on Taobao, the Chinese ebay, by the District Court of Furtian.
Li is the owner of an insolvent holding company Shenzhen Jie Ande which was being sued by two creditor banks for being unable to repay debts.
While he was being sued in China he had also closed a deal to buy the Rossoneri in April last year thanks to a €300 million loan from the Elliott Management Corporation, an American hedgefund, which he is now reportedly unable to pay.
Previous investigations from the New York Times and Italian financial newspaper Il Sole 24 Ore have already suggested he has a lack of funds.
Despite turmoil off the field, Milan have been in excellent form on it, winning 1-0 against Sampdoria over the weekend and now sit seventh in Serie A.