C Milan faces UEFA sanctions after an attempt to reach a settlement over a breach of financial fair play regulations was rejected by European football's governing body.
Milan last year spent more than 200 million euros (then nearly $250 million) on new players amid questions over the financial stability of the Chinese-led consortium that purchased the club from Silvio Berlusconi for $800 million in April 2017.
Milan took a loan from U.S. private equity fund Elliott worth more than 300 million euros.
UEFA says Milan breached the requirement on clubs to break even and financial investigators believe there are continuing ''uncertainties in relation to the refinancing of the loan and the notes to be paid back in October 2018.''
UEFA says the adjudicatory chamber of the Club Financial Control Body will make a decision on the case in ''due course.''
Possible punishments include limits on transfer spending, player salaries, and squad sizes for UEFA competitions.
Milan has qualified for the Europa League next season but risk being excluded as part of the possible sanctions.