The team then won its first FIFA Club World Cup in December 2007.

On 20 February 1986, entrepreneur Silvio Berlusconi acquired the club and saved it from bankruptcy investing vast amounts of money,[2] appointing rising manager Arrigo Sacchi at the helm of the Rossoneri and signing the Dutch trio of Ruud Gullit, Marco van Basten and Frank Rijkaard.[2] Under Sacchi, Milan won its first Scudetto in nine years in the 1987–88 season. The following year the club won its first European Cup in two decades, beating Romanian club Steaua Bucure?ti 4–0 in the final. Milan retained their title with a 1–0 win over Benfica a year later and remain the last team to win back-to-back European Cups.[17] The Milan team of 1989–90 has been voted the best club side of all time, in a global poll of experts conducted by World Soccer magazine.[18]
After Sacchi left Milan in 1991, he was replaced by the club's former player Fabio Capello whose team won three consecutive Serie A titles between 1992 and 1994, a spell which included a 58 match unbeaten run in Serie A[19] and back-to-back UEFA Champions League final appearances in 1993 and 1994. A year after losing 1–0 to Olympique de Marseille in the 1993 Champions League final, the team reached its peak in one of Milan's most memorable matches of all time, the famous 4–0 win over Barcelona in the 1994 Champions League final.[19] Capello's team went on to win the 1995–96 league title before he left to coach Real Madrid in 1996.[19] In 1998–99, after a two-year period of decline, Milan lifted its 16th championship in the club's centenary season.
Milan's next period of success came under another former player, Carlo Ancelotti. After his appointment in November 2001, Ancelotti took Milan to the 2003 Champions League final, where they defeated Juventus on penalties to win the club's sixth European Cup.[20] The team then won the Scudetto in 2003–04, before reaching the 2005 Champions League final, where they were beaten by Liverpool on penalties despite leading 3–0 at half time.[20] Two years later, the two teams met again in the 2007 Champions League final with Milan winning 2–1 to lift the title for a seventh time.[20] The team then won its first FIFA Club World Cup in December 2007.[21] In 2009, after becoming Milan's second longest serving coach, with 420 matches overseen,[21] Ancelotti left the club to take over as head-coach at Chelsea.
During this period, the club was involved in the Calciopoli scandal, where five teams were accused of fixing matches by selecting favorable referees.[22] A police inquiry excluded any involvement of Milan managers,[23] but FIGC unilaterally decided that it had sufficient evidence to charge Milan vice-president, Adriano Galliani. As a result, Milan was initially punished with a 15-point deduction and was initially banned from the 2006–07 UEFA Champions League. An appeal saw that penalty reduced to eight points,[24] which allowed the club to retain its Champions League participation. Milan subsequently won the competition, lifting the European Cup for the seventh time.[25]
Following the aftermath of Calciopoli, local rivals Internazionale dominated Serie A, winning four Scudetti. However, with the help a strong squad boasting players such as Zlatan Ibrahimovic, Robinho and Alexandre Pato joining many of the veterans of the club's mid-decade European successes, Milan recaptured the Scudetto in the 2010–11 Serie A season, their first since the 2003–04 season, and 18th overall.