Struggling AC Milan Reportedly Close to Sealing a Deal to Pay Off Elliott Management Debt

Serie A stugglers AC Milan are reportedly close to agreeing a deal that would see them able to pay off their debt with US hedge fund Elliott Management.

The company aided investor Yunghong Li in purchasing the club from Silvio Berlusconi earlier this year, providing €180m towards the deal.

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Concerns have been hovering over the club about the nature of the deal, with Elliott Management holding a reputation as being a 'vulture fund', and there is an interest rate of 11.5% on capital that must be repaid by October 2018.

But as reported by CorSera via MilanNews.it, a deal to pay off the debt with the help of advisor BGB Weston has almost been agreed. It consists of a loan that needs to be paid by 2023, with higher interest. In addition, they would receive an extra €100m investment. The total deal would be worth €400m, and should be closed within eight weeks.

It hasn't been the greatest of starts to life as an owner of a football club for Li, with Milan struggling to keep pace with the top teams in Serie A.

His money brought in an influx of new players over the summer and evidently they have failed to gel in the way he would have hoped - the club sit seventh after 12 games and are 13 points adrift of leaders Napoli and 11 behind Champions League-placed Inter in third.