Former Italian President, Silvio Berlusconi, warned of ‘serious financial problems’ still present at AC Milan after selling the club back in April.

AC Milan had a net spend of £146m in last summer’s transfer window, bringing in the likes of Leonardo Bonucci, André Silva and Hakan Çalhanoğlu.

Although Berlusconi sold the club to Chinese businessman, Yonghong Li, the purchase of the club was funded by Elliot Management, a US hedge fund. It is understood that Elliot Management will take control of the club should the loan not be repaid.

“If the team continues to do so badly, then it’s possible the Elliot funds will take over in the spring," Berlusconi told Telelombardia, via Football Italia.

Milan’s steady decline can be linked back to their 18th Serie A title in 2011, where most of their star players at the time, including Pippo Inzaghi, Alessandro Nesta, Andrea Pirlo and Gennaro Gattuso were all in the latter stages of their career.

Every one of them have now retired except for Pirlo, who will retire at the end of the current MLS season.

Milan, who currently sit 11th in the Serie A, are playing European football for the first time since 2014. But whilst the Europa League is a respectable competition, it dwindles in comparison to Milan’s Champions League pedigree.

“The real problem is they will be €100m in the red without the Champions League.” Berlusconi continued.

“Whoever would buy the club certainly wouldn’t have to pay much compared to its real value, but they’d have to heal it after some very heavy years.”