CF: Milan record over €19m in write-downs on six players – why it is an advantage for the future

By Oliver Fisher -

AC Milan issued a number of write-downs in their 2019-20 balance sheet in order to help the financial health of the club moving forward.

As Calcio e Finanza notes (via, Milan have essentially devalued a number of assets on their accounts in what is essentially an ‘accounting maneuver’ that will make it possible to record higher capital gains in the financial statements for the 2020-21 financial year, or to avoid capital losses.

Six players are involved, starting with Andre Silva whom Milan devalued by €11million, bringing his book value to €2.8m. With his sale to Eintracht Frankfurt going through for around €9m, the Rossoneri are able to record a capital gain of €6.2m.

Regarding Lucas Paquetà, his value was written down by €5.25m from €25.25m to €20m, the same figure for which he was sold to Lyon.

There was a €1m capital gain recorded for Ricardo Rodriguez, as the Rossoneri lowered his value to €2m (€-1,547,000) and sold him to Torino for €3m plus bonuses.

Gustavo Gomez was devalued by €0.96m with a value which therefore stood at €0.95m, and he was allowed to join Palmeiras for approximately €2m so a capital gain of €1.05m.

Pepe Reina was devalued by €1m for the termination of his contract, and Alen Halilovic had a devaluation of €6,667 before termination.

In total therefore there is a devaluation therefore of €19,763,667 – immediate negative effects that will however give an advantage in the future and the 2020-21 accounts.

Tags AC Milan Andre Silva Gustavo Gomez Lucas Paqueta Pepe Reina Ricardo Rodriguez
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