Milan fell foul of UEFA after their takeover by Li Yonghong in 2016 resulted in the Chinese businessman seeking a high interest loan of €300m to cover the costs and settle a debt.
UEFA demanded to be informed of the financial strategy moving forward, yet remained uncertain as to how Milan would pay the loan back on time and about the 'financial guarantees of the main shareholder' - which was Li.
Milan finished last season with a €100m spending deficit, more than three times the €30m annual limit permitted by UEFA rules, leading to sanctions.
Now, however, Milan will be back in the Europa League this coming season after CAS overturned UEFA's decision to expel them and insisted that the football governing body think up a punishment more proportionate to the club's breaches.
Court of Arbitration for Sport annuls UEFA decision to exclude AC Milan from UEFA club competitions on basis that sanction not proportionate. In particular, the current financial situation of the club is now considered to be better following the recent change in club ownership. pic.twitter.com/PFpEySqXfN— Lombardi Associates (@LombardiAssocs) July 20, 2018
After Li defaulted on his loan in July, control of Milan was handed over to Elliott Management Corporation, the company from which he had obtained the cash. It is thought that the presence of Elliott and the company's ability to guarantee financial solidity was key in the CAS ruling.