The Rossoneri will have their squad restricted in UEFA competitions and face a suspension if they are not break-even compliant by June 2021

Serie A giants AC Milan will not be banned from UEFA competitions for breaching Financial Fair Play regulations, providing they are able to break even in two-and-a-half years’ time.

Milan were suspended from this season’s Europa League, only to have the punishment overturned by the Court of Arbitration for Sport (CAS) in July.

Following that ruling, European football’s governing body has now handed down a “proportionate disciplinary measure” via its Adjudicatory Chamber of the Club Financial Control Body.

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A statement read: “The Adjudicatory Chamber of the Club Financial Control Body (CFCB) has taken a decision in the case of the club AC Milan following the decision of the Court of Arbitration for Sport (CAS) panel in CAS 2018/A/5808 AC Milan v. UEFA to refer the matter to the CFCB for the imposition of a proportionate disciplinary measure for the club’s breach of the UEFA Club Licensing and Financial Fair Play Regulations, in particular the break-even requirement.

“Accordingly, should the club not be break-even compliant at 30 June 2021, it will be excluded from participating in the next UEFA club competition for which it would otherwise qualify, in the two seasons 2022/23 and 2023/24. The club will also have EUR 12 million of its UEFA revenues from the 2018/19 UEFA Europa League withheld and will not be permitted to register more than 21 players for participation in UEFA competitions in the 2019/20 and 2020/21 seasons.

“This decision may be appealed to the Court of Arbitration for Sport, in accordance with Article 34(2) of the Procedural rules governing the UEFA Club Financial Control Body, as well as Articles 62 and 63 of the UEFA Statutes.”

Milan will have €12 million (£11m/$14m) of their revenues from the 2018-19 Europa League withheld and will be restricted to registering 21 players in squads for UEFA competitions over the next two seasons.

If the club are not break-even compliant by June 30, 2021 they will be banned from UEFA tournaments in 2022-23 and 2023-24.

Once again, Milan have the option of appealing their punishments before CAS.

Gennaro Gattuso’s side were knocked out of this season’s Europa League on Thursday when they suffered a 3-1 defeat at Olympiacos.