MILAN, May 22 (Reuters) - UEFA will turn down a request by Italian soccer club AC Milan for a settlement agreement regarding a breach of financial fair play rules, a source with knowledge of the matter said on Tuesday.
Under UEFA regulations, any European soccer club spending more than its generated revenue faces possible sanctions, including, in certain circumstances, a ban from playing.
Milan asked UEFA to exercise its right to waive the rules after Chinese entrepreneur Li Yonghong bought the club from Italian holding company Fininvest.
U.S. private equity fund Elliott last year gave Li a 180 million euro lifeline to complete the purchase of the Serie A club, which is trying to emerge from years of losses with a turnaround plan.
UEFA was not immediately available for a comment. (Reporting by Elvira Pollina, writing by Stephen Jewkes)