For several seasons, AC Milan’s balance sheets have been negative for quite some time. In the 2018/2019 financial year, the registered a loss of €146m and in the previous one, it was €126m.
Of course, this can’t continue forever for the club, as the costs are simply too high compared to the revenue. CEO Ivan Gazidis is determined to cut the costs in every way possible to have a more balanced budget.
At the same time, he also has to think about increasing the revenue, which isn’t an easy task when the sporting results aren’t there. In today’s edition of Gazzetta Dello Sport (via Milanlive.it), the financial situation of the Rossoneri is analyzed.
In the past season, gross salaries were increased by €30m, taking the total up to €184.8m. This is almost as much as their city rivals Inter, who are at €192.6m. Meanwhile, the revenue remained steadily at around €200m.
Since taking over from Yonghong Li, Elliott Management have injected around €345m into the club’s coffers, covering all the losses while also guaranteeing net worth of €143m. In many ways, they saved the club from a disaster.
In January, the Rossoneri started to reduce the costs, mainly with regards to the wage bill. Further cuts will be made at the end of the season, without forgetting that they need to build a competitive team.
Budgetary and sporting needs will thus have to travel on the same line. Easy? No, but it’s necessary to find the right path. If the plan is to bring Milan back to the top of football, an effective project is needed.