AC Milan have been banned by UEFA from competing in European competitions, either champions league or Europa league next season after failing to comply with the Financial Fair Play rules.
UEFA announced its decision on Tuesday, citing that Milan would not be able to play in any European competition for the 2018/19 campaign despite qualifying for the Europa League.
The Italian based club last year spent over £175million on new players which raised questions over the financial stability of the Chinese-led consortium that purchased the club from Silvio Berlusconi for £600m in April 2017.
On Wednesday, a UEFA statement read: "The club is excluded from participating in the next UEFA club competition for which it would otherwise qualify."
AC Milan can choose to appeal the decision to the Court of Arbitration for Sport in Lausanne, Switzerland.
'We secured qualification to the Europa League group stage and reached two finals of the Coppa Italia (both senior squad and youth team).
'We are requalifying the Milanello training ground and taking part in the next season of the Women's Serie A league. We adhered to the initiative of the FIGC on B-Teams and, if included in the list, will participate in the next Lega Pro season with our Under-21 side.
'We immediately worked to make the organisation more efficient so we could run it in a virtuous manner. Despite the fact that after the "closing" two main sponsors (Audi and Adidas) resolved their contracts with Milan, we still closed the balance sheet with €20m more in revenue.