AC Milan are facing the realistic possibility of not having Champions League football in 2025-26, something that would cause economic damage.
La Gazzetta dello Sport have published a report which outlines the overall difference between the first and second continental competition, i.e. the Europa League. The UEFA prize money – divided into participation fees, results and market pool – allocated overall to the current edition of the Champions League (and which will be valid for three years) amounts to €2.47bn.
The Europa League has been allocated €565m, still €100m more than the previous three years (the Champions League prize fund went up €500m), but a drastically lower figure than its richer big brother.
The good news is that Milan, thanks to very prudent financial management by Elliott Management and RedBird Capital, have sorted out the accounts, producing a profit that had not been seen for a long time.
So, in principle, the Rossoneri being in the Europa League would not cause any immediate financial emergency (needing a fire sale). If anything, it would have a cascade effect on future developments precisely because participating in the Europa League would bring in much lower revenues.
Milan obtained around €60m in UEFA prize money this season, to which the box office revenue must be added. The club have decided not to communicate the revenue for ticket sales, but for the five home games, we can imagine it was at least €25m. That means almost €90m, from a premature elimination.
Going into detail about the UEFA prize money: €18.62m for participation; €2.1m for each victory in the league phase and €700k for a draw plus bonuses based on the position in the standings. They range from €275k for the 36th-placed team to around €10m for the first.
Then there is €11m for those who qualify for the round of 16; €12.5m for the quarter-finals; €15m for the semi-finals; €18.5m for the final and €6.5m more for those who lift the cup.
A comparison with the Europa League is scary: €4.31m for participation; €450k for each victory in the league phase and €150k for a draw; plus bonuses based on the ranking: €600k for the top eight, €300k from ninth to 24th place. Those who qualify for the round of 16 get €1.75m; €2.5m for the quarter-finals; €4.2m for the semi-finals; €7m for the final; €6m more for those who lift the cup.
Doing some rough calculations, if Milan hypothetically had followed the same path as in the Champions League in this Europa League, instead of €60m the prize money would have been around €20m.
It is a difference that would obviously also be found in ticket sales, given the average prices for the Europa League would be decidedly lower than for home matches in the Champions League. Instead of €25m, it would be around €10m. Total: €85m versus €30m.
They can be happy if commercial and broadcasting revenue alongside with match day revenue produces difference between Europa League vs Ucl revenue.
The damage could be maybe worse if commercial affects much more.
But, that makes opportunity for coach to proper select the squad and management to the quality sales. So many players are in this squad with o low numbers.
Focusing only on Serie A in terms of not reaching UCL is first step to make this team big again.
Make this team big again.
Every thing in the world and around us reveals one thing; the products reveals the planner/designer… This acmilan is a world worse than previous years, ever since Cardinale took over the team has taken a downturn on the field but financially had grown! This man is a man of numbers not a lover of football who wants to win trophies…he already had won because he had double the revenue and goals achieved….
If berlusconi ( A football man) were to come today, Milan will be reshuffled and you will see immediate transformation on the field…
Anyone else here who also thinks that even Europa League now might be a stretch with the current form and how disconnected ACM looks on the pitch???
(just to contemplate, now Roma is almost there on the table)
What a disappointment this season is. And imagine the management had all the time in the world to prepare the post-Pioli era properly, throwing it away by initially choosing Lopetequi (what a joke) and ultimately appointing Fonseca. Very well done…
Yes a lot of players flops.
Or Pioli was master and these new coaches clowns. We can write that as you wish. They can finish below 7th position.
Milan can count on profit last year only 4million, and sum of profit or loss of this year. So in next season they can be maximum of loss around 30 million. Final financial result will be seen after this season.
So either way next season they have a lot of works in terms of players sale, for good profit and against bringing strong players who will not flops.
Another bad result next year can mean way to cycle where all best players must be sold year by year just to be on positive 0, and that means even worse result.
Now summer is crucial for stronger names in many positions.
I don’t disagree with anything here except your last sentence. How can you expect stronger names with worse results? And again saying things you know here – our crisis is not a lack of names, on paper players are as good as most teams around. Names won’t fix this. Need a sporting project for starts.
We could probably run a bigger loss than that and not get penalized, considering the prior years have also been close to break-even. But the question is will ownership have the wallet and the stomach for that – we haven’t seen any indications that they do.
There’s no chance we’re getting top 4, but I think we do have a good chance at 5th. We have to hope for an Italian miracle in the European competitions…
It is funny because this bleak financial outlook was estimated based on UEL vs ECL.
The simple truth is as things stand right now the management should be prepared for uefa conference league next season.
Top Management shouldn’t even think of changing coach while recruiting mediocre/fringe/misfit players.
They can secure Europa spot by wining the coppa Italia. I won’t raise my hopes because finishing with the same patten of results while other teams improve guarantees an 8th/9th placed finish at best.