With the signing of Youssouf Fofana from AS Monaco, AC Milan moved on to four new additions this summer and a report has detailed some of the figures for each operation.
The headline figure that everyone looks at when it comes to signings is the transfer paid from one club to the other, but in actual fact there are a number of other relevant figures which show up in the yearly accounts for every team.
In addition to the fee paid there is the gross salary to take into consideration and the amortisation (transfer fee divided by the length of the contract) which forms the total annual cost in the balance sheet.
MilanNews have provided a breakdown of all the purchases that the Rossoneri have made so far in the summer mercato player by player.
Alvaro Morata
➤ €13m fee
➤ €5m net per year salary
➤ €3.25m amortisation per year (depreciation)
➤ €9m gross salary per year
➤ €12.25m annual cost
Strahinja Pavlovic
➤ €18m fee
➤ €1.8m net per year salary
➤ €4.5m amortisation per year (depreciation)
➤ €3.24m gross salary per year
➤ €7.74m annual cost
Emerson Royal
➤ €15m fee
➤ €3m net per year salary
➤ €3.75m amortisation per year (depreciation)
➤ €5.4m gross salary per year
➤ €9.15m annual cost
Youssouf Fofana
➤ €23m fee plus bonuses
➤ €3m net per year salary
➤ €5.75m amortisation per year (depreciation)
➤ €5.4m gross salary per year
➤ €11.15m annual cost
Milan have therefore spent €69m in transfer fees (excluding bonuses) this summer on new signings, plus €23.04m in gross wages.
So nearly 110M on four players. Cheap a** owners. 🙄
Where did you get 110M???
You don’t count Salaries for NET transfer spend buddy
13
18
15
23
Is a total of 69M
However we SOLD – CDK (23M) and Simic (3M). So 69 minus 26 = 43M NET SPEND
We will also be selling more players to get us down to that magic 35M NET Transfer Spend so don’t you worry – these cheap A$$ owners will still have time to get that NET spend down LOL
CDK money will come next summer buddy. Currently he leave on Loan with obligation to buy that only active at 2025. So his transfer money will only improve next year budget, not now. Learn your own fact before posting.
Oh wait, forget to add. LOL
To my knowledge Atalanta will have to pay for CDK in January.
No it won’t buddy
It actually comes in February but will be counted as this seasons spend 😝😝😝😝😝
Well we still wont be able to use that in this window 😅
@martin its on February so we wont be able to use that for this summer, or winter. But maybe it will count towards the financial report of 23/24…
This article is about how much the club spent in TOTAL bro, in this case on the four new players brought in. We’re not just talking about net spend. Why do you think they included transfer fee, gross salary and amortization in the article? For fun? To accurately calculate how much it costs the club to buy and pay a player, you have to add transfer fee, to GROSS wage paid, and amortization (decrease in value, which is a cost, HELLO). Amortization = depreciation = cost*. That’s 110M spent by the club, period.
“Milan have therefore spent €69m in transfer fees (excluding bonuses) this summer on new signings, plus €23.04m in gross wages and €17.25m in depreciation.” = 110M. That’s it in plain English.
*investopedia.com/terms/d/depreciation.asp
*en.wikipedia.org/wiki/Amortization_(accounting)
*en.wikipedia.org/wiki/Depreciation
“LOL”
The amount the team NOW actually spent is €69M in fees.
Wages (€23M/Year) will still to be paid from team future revenue.
Depreciation and amortization are not actual costs but they are added as such in order to recover the transfer fee paid from future revenue to finance future deals.
so you divide the €69M over the length of contracts, add it to wages as annual costs.
The players will actually cost the team in total €69M+ €99M (Assuming all players have 3 years of contract* €23M the annual wage) = €168M what will actually cost Milan if all players stay until the end of their contracts im not sure though what is the actual contract length of each.
I don’t know what’s the point of this article. If we compare these salaries to those of Inter or Juventus recruits, it’s still ridiculous for an « ambitious » European top club. And all of this is based on a scenario where all these guys leave for free at the end of their contract. I’m sure the bankers are also able to forecast how much they can make from merch and commercial deals with Morata or Fofana. This management is not spending like maniacs by paying 13M€ for the almighty new starting striker Mister X and giving him a smaller salary than Romagnoli haha
To begin with, the biggest issue is the near constant attack of the club, and the flippant responses to those who disagree with the incessant attacks on the club. Then, there is the reliance on a complete misunderstanding of that is being stated in the article, and using that to imply that the other person is stupid.
Now you to your comment specifically. What of Inter’s recruits? Who are Inter’s recruits this summer? There are only two new players of consequence: Taremi and Zielinski, both arriving with no transfer fee. Then they’re earning 5.6M gross (3M net) and 8.3M gross (4.5M net), respectively (Source: Capology). Fofana and Morata are on almost identical deals. So, none of Inter’s new “recruits” are earning more than ours. In fact, because we paid for hours, we’re spending more (already detailed in my other posts).
According to the same Capology, Inter spends 143.3M per year on player salaries, we spend 101.2M. OK, wonderful, they spend more on salaries. Their prior owners also just failed to repay their loan and they’re now owned by their creditor. I know this means nothing to you. You’d rather have this owner spend 100M every summer buying this player and that player, going bankrupt, selling the club to the next one, they spend 100M every summer until they go bankrupt in a handful of years, wash rinse and repeat. A cycle of bankruptcy and ownership change, and somehow assuming that as we’re doing so we’re also definitely winning something. It’s a strange logic, because no amount of spending can guarantee winning a trophy. This also supposed that defaulting on loans will result in some pretty takeover by some creditor. Why didn’t a creditor save Parma or Fiorentina when they went bust? At some point the debts will be so large that no creditor will want to touch the asset. That means Serie D and becoming “AS Milano” or “Milan FC” or something, because when the club is reformed in Serie D, the old IP stays with the old bankrupt entity until it’s bought back.
Also, for some more perspective:
Transfer fees Inter v. Milan
2024/25
Inter – 63.5M (the only new player is Martinez, Arnautovic, Frattesi and Augusto were all deferred, and the rest are free)
Milan – 71.7M
2023/24
Inter – 70.75M
Milan – 121M
2022/23
Inter – 70.2M
Milan – 56.3M
2021/22
Inter – 42.6M
Milan – 100.4M
2020/21
Inter – 126.5M
Milan – 32M
Source: Transfermarkt.
Inter total for last five years: 373.6M
Milan total for last five years: 381.4M
We’ve outspent Inter over the last five years! And that includes Elliot’s ownership during that first year in this list and they were just custodians! Oaktree = Elliot! They’ve spent 0! The current summer spend is inherited commitments! So what’s to complain about? B-b-but the salaries?
L-O-L.
I’m not even going to bother with Juventus, a club that hasn’t won anything in 5 seasons and just sold nearly 100M of their best prospects to fund a quick rebuild.
Exactly.
The kid is happy because we spent 3M season on player salary like that is some great achievement
BUT he won’t ask how many we LOST because of of wage cap LOL.
Never knew we had so many Redbird lovers who were also bankers ummm I mean fans??? Hahahahahahahaha! Embarassing kid
It’s 69m . Salary will be paid over the period of years so they are not counted. Depreciation is also spread over the period of years.
In total spend minus bonuses is 69m
Straight from the source Milannews.it article:
“These are the costs, including transfer fees, salary, amortization and total annual cost in the balance sheet, of all the purchases that the Rossoneri have made so far in this transfer window.
Alvaro Morata .13 million, 5 million annual salary.
3.25 amortization
9 gross salary
12.25 million annual cost
Youssouf Fofana . 23 million plus bonuses, 3 million annual salary.
5.75 depreciation
5.4 gross salary
11.15 million annual cost
Emerson Royal . 15 million, 3 million annual salary.
3.75 depreciation
5.4 gross salary
9.15 million annual cost
Strahinja Pavlovic . 18 million, 1.8 million annual salary
4.5 depreciation
3.24 salary
7.74 million annual cost”
See how they calculate “annual cost”? Let me do the 2nd grade math for you in Pavlovic’s case for example: 4.5 depreciation + 3.24 salary = 7.74 million annual cost.
Add up the four annual cost totals for the four players and you get 40.29M annual cost. Add the 69M spent on transfer fees for them to this and you get 109.29M annual cost and then I rounded up to the next whole number, which was 110M.
“LOL”.
Can’t attack the ‘club’ (by which you seem to be referring to some random suits) but can attack the players including the club captain.
Got it.
Depreciation is a cost of purchase per year. You are counting it twice. You should not. Example: you buy a computer for € 1000 and put depreciation on the balance sheet say 1/5*1000=200. That does not mean that computer cost you 1200 in the first year and 2000 at the end of 5. It simply means that you paid 1000 which at the end of 1 year will turn into 800 on your balance sheet.
Thus if we pay 69m for all players and depreciate in over 3 years the cost of purchase is 69, no more, but on the books it will be 23 less after one year.
Resorting to the cheap trick of using the net spend, ignoring the fact all clubs sell players. As I told you, the budget was around €80 million, Jimenez’s fee wasn’t included here. As usual, you were and continue to be wrong.
LOL
Well NET spend is how clubs operate donkey
So we have a NET spend of 35M – like I said that hasn’t changed. READ kid. Go slow. It’s ok Uber 😝😝🤡🤡
You’re hopelessly unaware of how things work. That’s why people have to continually correct you, because you THINK there’s value in what you say. There isn’t. The most successful clubs take in tens of millions from player sales.
Net Spent
Bayern Munich €69.15 million
Arsenal €45.1 million
Real Madrid €33 million
Man City -€91 million
Liverpool -€23.4 million
All of whom generate significantly more revenue than we do. You’re complaining because you’re a simp who doesn’t understand basic economics.
Also, they are all outright transfers. No loans.
Lucky I don’t care about money.
It’s a good effort for looking at the true cost – the annual cost per player is the big part there.
It would be interesting to compare that to last year and whatever Giroud, Kjaer and Caldara were costing per year.
By my reckoning, the annual budget cost has gone up a lot so far, with nothing so far coming in to balance it.
It is wrong written. Milan did not spend 69 million plus €23.04m in gross wages and €17.25m in depreciation.
Milan spent 69 million on transfers fee, plus will spent 23 per year on gross wages. And…
17 million will be show on balance sheet as a yearly cost fee for transfer fess of these 4 players.
But some players left from balance sheet. Like caldara 5 million depreciation, plus wages, and Giroud, Krunic, De Ketelaere wages.
Good.
Another observation:
The contract length (number of year of contract) should be stated to show the basis of amortisation.
So 40 million per year will be shown as cost for these 4 players.
It is not low cost and Milan must have good sporting result to keep this roster
Well, judging from the net salaries salaries earned, 12.8M as net salaries looks like good good deals.
The rest is due to national bureaucracy and taxation costs.
Exactly people cant count and dont know what depreciation and amortization even mean
As if the club never paid a single salary before haha amazing, next time include Scaroni’s bills in Milan’s finest restaurants so the total is even bigger
Hahahahahaha!!!
Omg 😱 we have soo many accountants in here. Well, I did not know that 😕
There are people who understand basic finance and the reality of running professional football clubs and there are blithering idiots who think we can spend money like Chelsea.
Nope. We’re all just silly stupid fans
oh no Milan didnt spend 1 billion like Chelsea twitter heroes like Juro dont have random 100m transfers to brag online about
This article is trying to show the “annual costs” from an accounting point of view. However the final sentence is poorly worded and misleading when it says “spent €69m in transfer fees… plus €23.04m in gross wages and €17.25m in depreciation” which seems to cause a lot of confusion.
The “and” shouldn’t be here. Either you need to look at it from a balance sheet point of view (gross salary change + depreciation) or cash view (net transfer spend + gross salary change).
So balance sheet wise the annual credit/“cost” added to the balance sheet was 40,29 M€ (23+17) + ca. 2.35M€ for Jimenez (5M€, 4 year contract on 1.1M€, source Capalogy). Meaning the total accounting “cost” is “only” 42,64M€.
For the cash view, you need to look at the actual timing of the payments as well and I don’t have all that info and it’s also not relevant for FFP etc. So won’t look at that.
Btw. On the debit side (“income or cost reduction), which is just as important. Milan have sold CDK at 0 (no capital gain/loss), Krunic gain just around 1 M€ and Simic gain of 2,75. So a total gain of ca. 4M€. They also reduced the gross salaries by ca 11.6€ mainly for Giroud (4,5) and Caldara (4.1), Kjaer (1.9) and Mirante (1.1). So a total debit of ca 15.6€.
Meaning that the net impact from the Mercato on the balance sheet this year is a “cost addition” of ca. 27M€. That is the figure that will be relevant for FFP etc.
I’m not include anything for Origi, Ballo, or loans in these figure which also might impact somewhat. Especially Origi’s gross salary if no solution is found.
You should all follow the Annual Accounting Championship if you find money so fascinating.
While numbers make your head hurt (which says more about you), we were heavily in debt and sanctioned by UEFA. That’s why how the club is run is important.
Somehow, still looks like Bantner era, lot of money spent, many guys, no one improves the team… Pulisic, maybe on paper but did he really improve the team? RLC useless, Musah lets hope for the future, TJ hmmm Iets give him time it starts to look good. Still, we sold Tonali like hehe we will replace him…
The addition of international class players who help the club to now consistenly play in the UCL is improvment and there’s no such thing as ‘the banter era’.
“international class players who …” , are you a chat bot or something ?