AC Milan have recorded profit in their accounts for the first time in over 15 years, it has been confirmed, as well as record revenues.
According to Calcio e Finanza, the Milan Board of Directors of the met yesterday to discuss and close the accounts for the 2022-23 season, which ended with a positive net result of €6m.
The figure is a clear improvement compared to the red of over €66m last season. The budget will then be submitted for approval by the shareholders’ meeting, which will probably take place towards the end of October.
It is excellent news regarding the financial health of the club, given that a net profit had not been recorded since 2006, when the balance sheet (which at the time was set to close on 31 December) showed a profit of almost €2.5m.
From then on – between the Silvio Berlusconi and Yonghong Li ownerships – Milan had always been in the red, and only the work of Elliott Management (and now RedBird Capital) has put the club back on the tracks of sustainability.
It is a path that the club intends to further with the construction of a new stadium, for which the latest fundamental steps were taken yesterday in relation to the San Francesco area in San Donato Milanese.
The revenues in the 2022-23 season exceeded €400m (compared to €297m in 2021-22), thus setting a new record in the history of the Rossoneri.
The figure is driven by an increase in commercial and sponsorship revenues – up by €44m compared to the previous season – and by the excellent run in the last edition of the Champions League.
However, there has been no lack of investment by the owners in the squad itself, with the ‘rights to the players’ performances’ having increased by €50m compared to the 2021-22 season.
Finally, the consolidated net equity as of 30 June 2023 is positive for €177m, a significant increase compared to the balance of €131.23m as of 30 June 2022.
With the huge debt we will contract by building the stadium and its surrounding real estate, I guess we will keep this recent strategy of selling our best players in order to finance the budget of the club.
Milan sold only Tonali in this year, 400 mil revenue from last year is without players sale.
There is nothing wrong for selling player for best possible price. Selling Tonali this year bring us players like Pulisic, Ruben, and Okafor who already have impact in our game by scoring goals and assisting.
Last year with players like Bakayoko, Vranckx, Origi and Rebic, Pioli couldn’t rest our first team players.
To have best possible team Milan must also sell for high price players.
We were champions two years ago and in UCL semis last year, hence the big boost in revenues. But I really don’t understand your point, how losing your best players makes your team better? And the new guys you mention were invisible in our biggest matchups, against Inter and Newcastle, so it remains to be seen if they were good additions.
I agree this is better against small teams, but if we beat only small teams and get destroyed by top clubs, we are basically Atalanta or Fiorentina.
My initial interrogation was about the weight of the new stadium + commercial facilities on the club’s budget. The total costs could very well be around $1B.
What is being spent on the stadium is what we call an investment. It is projected that the new stadium will generate 120m annually for the club. Selling first team players for huge numbers like we did with the Tonali deal made not only good financial sense, but good football sense. Let’s look at the Newcastle game as an example. We canceled out a team that finished third in the Prem and has exponentially higher financial power. That’s proof positive our strategy is working. All of the top clubs in the world cash in on top players, it happens regularly. RedBird hasn’t put a foot wrong so far.
Additionally let’s be honest. RLC is every bit as good as Tonali and probably better right now, and cost 1/3 the price. That deal is looking like a stroke of genius right now.
I don’t agree about Sandro and Ruben but it’s personal. Newcastle played without their best player and Tonali was just off injury. Experts say this was our easiest game in the group, so let’s see what we can do from now but there is a lot to proof.
What you mention in annual revenues is a projection. That’s what I don’t like in modern football. It’s always financial projections and speculation. If we don’t reach this number, there will be a hole in the budget which will have to be recovered by selling players. This is the model for most Europeans clubs and that’s why top clubs have such great teams and win everything.
I have to admit the budget is fine, thanks to this brand-first strategy, with new sponsors and Pulisic attracting the US market, but I fear that the stadium and its facilities will constrain the ambitions on the field.
To be a top team Milan need a new stadium. This is beyond debate to anyone who has been to San Siro. The top clubs don’t just buy for crazy amounts, they also sell for crazy amounts. Without going through a list I think people forget Inter sold their best player to Chelsea for 115m two seasons ago. I don’t hear any criticisms mobbed at them for putting finances above football.
To be a top team Milan need a new stadium. This is beyond debate to anyone who has been to San Siro. The top clubs don’t just buy for crazy amounts, they also sell for crazy amounts. Without going through a list I think people forget Inter sold their best player to Chelsea for 115m two seasons ago. I don’t hear any criticisms mobbed at them for putting finances above football. Inter are also pursuing a new stadium and nobody is criticizing them. So why does RedBird come in for criticism for doing same things as Inter, but actually vetter?
I think the answer is basic. Most people don’t truly understand what RedBird are doing and therefore are suspicious of it. And most Europeans don’t like Americans in their sport, as players or owners.
Sorry Flosso but 120m per year seems a huge over projection. City doesn’t even make half of that on matchday money and they have a stellar squad. My guess it’s closer to 40-60m per year like Juve when they opened their stadium.
If you sell 1 good or best player like Sandro for 80 million, and bring 4 players for 20 million each who will make bigger impact – you have stronger team.
If you win more matches against “smaller” team there is bigger opportunity to win competition.
Also Newcastle bought Sandro, but Musah in that game showed greater impact in game than Sandro and all Newcastle midfield combined.
When money is in question about squad solidity, buying much expensive players than does not mean you will have greater success or results on pitch.
Comparing Ruben Loftus with Sandro now , we can see, how Ruben easily approaching to have the same or bigger statistical results with goals and assists like Sandro did last year.
So in terms of buying in selling players: always sell high for highest amount and buy only smart …