AC Milan’s financial situation is among the healthiest in Serie A thanks to the fact they made a profit last season, but there is still a looming loan to be repaid.
As they do each year, La Gazzetta dello Sport (via Calciomercato.com) have drawn up a report that assesses the economic situation of Italian sides including debts, revenues, bonds and loans to be repaid.
Milan: The Rossoneri are much better off than their two biggest rivals, having closed with a profit for the first time since 2006 in the 2022-23 season.
They are expected to remain in the black thanks to player trading and growing revenues for 2023-24, but RedBird Capital must repay the €550m vendor loan to Elliott Management.
Moreover, the paper adds that from 2020 to 2023 commercial revenues tripled and the net financial position is very positive.
Inter: The Nerazzurri’s accounts are improving significantly compared to the record losses of 2021, with the biggest doubt remaining to be fixed which are the bonds issued by the ownership, bought by Oaktree and needing repaying.
The cost-income ratio at the Nerazzurri is improving and by a lot compared to 2021 where the losses hit €245m. All match revenue items (stadium and TV) are growing and the decline in wages and amortisation helps management.
The debt as of 20 June 2023 was €437m, but as mentioned it is the €350m (including interest) to be repaid to Oaktree at the end of May 2024 that is causing a lot of worry.
Juventus: It is the same critical situation also for Juve with their majority shareholder Exor having to commit to a new capital increase, the third since 2019. The balance sheet as of 30 June 2024 is expected to show a large loss.
The third capital increase since 2019 has made the owners turn up their noses with the aggregate debt of the last five years reaching €722m.
Ferrero and Scanavino have imposed reductions in wages and amortization and the trend will continue for the next few years too with the balance sheet as of 30 June 2024 still expected to be in the red.
Napoli: The season of the Scudetto win was also that of the record profit of €79.7m, in contrast with the three previous negative years. Player trading and the collapse of the wage bill were fundamental (farewells of Mertens and Insigne above all).
The boom in revenues – especially in terms of merchandising – allowed the club not to use the €50m loan granted by Unicredit. The balance sheet as of 30 June 2024 will also be a profit thanks to Champions League revenues and capital gains.
Roma: The Giallorossi’s accounts have improved a lot compared to 2021, but the economic contribution of the owners was fundamental and necessary.
As of 30 June 2023, the most promising data is the revenues from the stadium and player trading with a large cut in the wage bill. An improvement is also expected for the 2023-24 season, but the financial debt is negative by €448m (€130m without social loans).
Lazio: They recorded a fifth loss-making balance sheet in a row with (-€29.5m), with the amount of wages having gone up and the amortisation rate remaining very high compared to just five years ago.
However, budget that will close on 30 June 2024 will return to profit thanks to the Champions League revenues and the sale of Sergej Milinkovic Savic.
Atalanta: La Dea have now had seven consecutive profit-making seasons and in the last one a +€5.6m was recorded. As always, a player trading of +€83.5m has an impact and the next budget appears to be around break even.
Bottom line
Inter owe a loan of 350m
Milan owe a loan of 550m
Thanks Gerry
The difference is we are making money and repaying it won’t be an issue and Redbird itself is in strong financial shape. Inter on the other hand is still registering major losses and will likely have to sell key players. Bye Lautaro.
Barella is probably the one getting sold based on inter signing Zielinski and already having Frattesi for whom they have to pay his transfer fee next summer.
I should have just contacted Elliot myself and bought the team, pay them later when things are going well. Easy peasy
Are you 5? Do you know how loans work? Redbird has 18 months to pay it off. They have 10 Billion in assets and I believe they keep around 5% liquid. They are shopping for minority owners only to reduce liabilities, not because they can’t repay the loan. Milan are turning a profit in Italy which is impressive in its own right and there seems to be many interested parties who want to join the ownership group. I know you’re just trolling but you also seem woefully naive
At least I can make a comment or respond with some courtesy unlike yourself.
If you have a different view that’s ok.
I’m sure you understand, given your obvious knowledge that when investors buy a business they set up a limited company. That means the debts of the company are it’s own and not that of the investors.
So whatever the name of the holding company (i forget the name) they formed owes Elliot 550m.
Redbird are not responsible for the debt and won’t be paying it whatever happens.
Have a read about Man Utd and how it earns a profit every year yet is burdened with debt repayments as well as massive dividends to the shareholders.
Gerry’s only interest is making money, that is his business.
Loans are not due all at once.
Milan’s financial situation might be better but it needs to translate to a higher winning potential.
Inter seem to only be strengthening with Taremi and Zielinski incoming and Marotta at the helm.
Juve seem to be regaining their drive and form and have higher spending power (and their own stadium)
Milan needs to step up. Maybe (JUST MAYBE) bringing in Conte would be a statement of Intent by Cardinale as opposed to a (more fitting) gamble that is Motta…