MILAN (Reuters) - European soccer's governing body UEFA has rejected a request by AC Milan to waive the Financial Fair Play (FFP) rules, citing uncertainties in the Italian soccer club's financial situation, it said on Friday.
Under UEFA regulations, any European soccer club that spends more than its generated revenue faces possible sanctions, including, in certain circumstances, a ban from playing.
However, a club can ask for a waiver to the FFP under a so-called 'voluntary agreement' scheme.
Milan had asked UEFA to be able to exercise its right to waive the FFP rules after Chinese entrepreneur Li Yonghong bought the club from Italian holding company Fininvest.
"There are still uncertainties in relation to the financing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder," UEFA said in a statement.
"AC Milan will continue to be subject to the ongoing monitoring process and the situation will be assessed again in the first months of 2018," it added.
(Reporting by Francesca Landini and Elvira Pollina; Editing by Philip Pullella and Ken Ferris)