The San Siro side were awaiting a decision from European football's governing body for some time and they received it on Tuesday, with UEFA refusing to accept their offer to settle their FFP irregularities.
BREAKING NEWS: Uefa denied to Milan any settlement agreement for financial fair-play. Now Milan risking from transfer window suspension till disqualification from European competitions— Tancredi Palmeri (@tancredipalmeri) May 22, 2018
The club's accounts will have to be put under the microscope and they could face heavy fines, a transfer ban, and could possibly find themselves booted from the Europa League as well.
"After careful examination of all the documentation and explanations provided by the club, the CFCB Investigatory Chamber considers that the circumstances of the case do not allow the conclusion of a settlement agreement.
"In particular, the CFCB Investigatory Chamber is of the opinion that, among other factors, there remains uncertainties in relation to the refinancing of the loan and the notes to be paid back in October 2018.
"The Adjudicatory Chamber will make a decision on this case in due course.
"The CFCB Investigatory Chamber will further communicate in June its other decisions in relation to the monitoring of the clubs under investigation or under settlement agreement."
Milan had a proposal rejected in December and presented fresh documents in a 150-page dossier thereafter, yet that has been snubbed as well.
It is now unclear how owner