Serie A giants AC Milan have been taken over by US investment firm Elliott Management after former owner Li Yonghong failed to repay a €32million debt.
The sum, which was borrowed from the hedge-fund of company founder and owner Paul Singer, was required to increase capital last month, and legal action has since been taken to repossesses the arrears.
Elliott Management Corporation is a company that specialises in distressed debt acquisitions and has pledged to inject €50m as Milan go through the off-field changes.
"Ownership and control of the holding company that owns AC Milan has today been transferred to funds advised by Elliott Advisors [UK] Limited ["Elliott"]," a statement said.
"This transfer has occurred as a result of steps taken to enforce Elliott's security interests after the previous owner of AC Milan defaulted on its debt obligations to Elliott.
Milan takeover designed to "achieve long-term success"
"Having assumed control, Elliott's vision for AC Milan is straightforward: to create financial stability and establish sound management; to achieve long-term success for AC Milan by focusing on the fundamentals and ensuring that the club is well-capitalised; and to run a sustainable operating model that respects UEFA Financial Fair Play regulations (Milan have been banned from European competition for one season for failing to comply with FFP regulations).
"Elliott fully appreciates the challenge and responsibility that ownership of this great institution entails. Elliott is pleased not only to support the club during this difficult time, but also by the challenge of achieving ambitious objectives in the future via the on-field success of coach [Gennaro] Gattuso and his players.
"As first measures, Elliott intends to inject €50m of equity capital to stabilise the club's finances, and plans to inject further capital over time to continue to fund AC Milan's transformation."
The statement continued with a quote from Singer.
"Financial support, stability, and proper oversight are necessary prerequisites for on-field success and a world-class fan experience," the 73-year-old businessman said.
"Elliott looks forward to the challenge of realising the club's potential and returning the club to the pantheon of top European football clubs where it rightly belongs. Elliott also strongly believes in the value-creation opportunity at AC Milan."