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AC Milan did not impress me against PSV.
In serie A: they lost against Juventus and then draws against Lecce and Palermo. I think they are not in the best form...Liverpool has a chance (although on theoretically AC Milan has the better players).
Liverpool has by far the best coach/manager (the best in the world imho).
I see a hard fought game 7-6 or 8-7 for Liverpool (joke: 1-0 or 0-0).