AC Milan CEO Ivan Gazidis has given some key indications regarding the plans for the club moving forward under new ownership RedBird Capital.
Milan are at a very interesting point in their history as RedBird have just completed their acquisition of the club from Elliott Management after the US fund embarked on a journey aimed at improving the accounts in conjunction with establishing success on the field.
Last season’s Scudetto win with a young core of players and contained investments was a perfect example of the potential such a project has, but now the issue has arisen about whether to push the boat out and increase expenditure or stay true to what has worked so far but risk not bridging the gap with the top clubs in Europe.
Gazidis gave a question and answer sessions at the end of the Milan shareholders’ meeting that took place this morning and approved the 2021-22 financial statements, with his comments relayed by MilanNews.
Could you give us a picture of the sponsorship discourse? Will there be new, higher-paying deals?
“As you well know we have a relationship with Fly Emirates where we help each other to grow. I hope we will be in a position to make an announcement soon.”
Can the amount of wages be increased?
“We are always in a growth process. Every year we will grow, this revenue growth means that it is possible to do bigger things in the market. The money is available to invest in all aspects of the club, salaries and in the market.”
What about investments in the future?
“It is the basis of our strategy, a virtuous cycle. When revenues grow it is possible to invest more, the larger the investments and the more we can do in the field if we did things right. And then this means that the cables grow even more.”
What can we expect from RedBird?
“RedBird have great expertise in all areas of sport, particularly commercial, and fan relations. They are learning, they understand very well that football is different in the USA: they have experiences with Liverpool and Toulouse and they have to listen and learn for a while.
“They believe that there are many things that bring this environment to Italian football, and I do too: there are many things that we need to improve if we want to grow. The RedBird experience will change not only the future of Milan, but also of Italian football.”
Is the Super League still standing?
“The problems remain, the Super League is not the right answer but the problems are there.”
What strategy is in place for Leao’s renewal?
“No more voices are needed besides that of Paolo Maldini, who is asked weekly about the Leao issue.”
Is it possible you will renew your contract after the December deadline?
“The thing that interests me most is precisely the value of this project, which does not depend on individuals but on the teamwork of a well-cohesive team that can collaborate profitably. I feel the responsibility to have a project that can work solidly, this is my first concern and my first responsibility as it has always been until now. I will discuss all this with peace of mind with RedBird and when the time comes we will make a communication.”
Will Milan be able to do player trading?
“I would like to say that Milan remain one of the biggest brands in football, and there are different levels as the president said that are behind the commercial growth: the stadium, the performances on the pitch. These things require experience and balance, if you proceed too fast on the one hand you lose on the other.
“Revenue growth leads nowhere without increasing performance on the pitch. There are risks of being conservative and risks of being too aggressive. And this is where experience comes in and balance.
“This also applies to player trading: believing that it is better to always keep our best players could paradoxically be too conservative. Over time the age of the squad will increase, what one could think of obtaining from investments will not have its real counterpart. These problems are evident in many football clubs.
“On the other hand, if you are too aggressive in obtaining significant revenues from player trading, creating a sum of salaries based on these presumptions which then prove unreachable would mean being aggressive, endangering the balance of the company. What we want is growth in all areas.”
Will Milan reach break-even soon?
“I consider a positive EBDA [earnings before depreciation and amortisation] to be an important result, having therefore gone into breakeven from a cash point of view: it means that, except for extraordinary transactions, we don’t always have to knock on the shareholder’s door.
“I don’t foresee it for 2022-23, but for the next one if the sporting results continue to be like this I don’t know if we will reach a balance but for sure we will continue to get cash.”
AC Milan must do more than build a new stadium and attract bigger and better sponsors in order to greatly increase revenues. To compete financially against wealthy English Premier League clubs, the Rossoneri must also leave Serie A and play in a new, continental League. A European Super League in which a number of privileged clubs are guaranteed places, regardless of their results, isn’t the solution. A European league based on merit and modelled on the multi-divisional structure of existing national leagues is the right way forward. EPL clubs can be invited to join, but their participation isn’t essential though desirable. A European League will capture the imagination of fans everywhere and generate broadcasting revenues that will match and in due course likely exceed those of the EPL. The Rossoneri have the pedigree and unrivalled Italian footballing nous to be masters of the universe again, but they also need the financial muscle. Redbird must seize the initiative and be firmly at the forefront of efforts to establish a continental league. This is the obvious next step in the evolution of the beautiful game in Europe and shouldn’t be delayed any further. AC Milan’s future depends on it.