AC Milan will make some moves on the transfer market. Since they took over the club, Elliott have drastically improved the balance sheet and above all the financial reliability, as highlighted by today’s edition of Gazzetta Dello Sport.
Per the newspaper, as cited by Milanlive.it, the Rossoneri won’t have the opportunity to make absurd investments, but they won’t stand still. The financial situation has been improved each year and is now more reliable than during Yonghong Li’s period.
Milan paid for their sins by giving up Europa League this past season and now it’s time to start from scratch. Of course, they can take advantage of the changes to the Financial Fair Play due to the Coronavirus crisis.
The changes, as the newspaper continues, are significant: 1) 2020 will be merged with 2021 as a single financial year. 2) The loss of revenues from due to COVID-19 will be taken into account.
For example, if a club had revenues of €50m in 2019 and only €25m in 2020, the difference will be ‘discounted’ from the liabilities. Furthermore, the check on the accounts has been postponed for a year. The next check will only be in 2021.
This is a good opportunity for Milan, who have already paid their penalties and will see their balance sheet improve. From the €146m loss of 2019, it will be just €100m for this year.
Furthermore, participation in the Europa League shouldn’t be wasted. Sealing a spot in the group stage is essential for UEFA’s prize money and to further improve the budget.
In view of 2021, the accounts will certainly still be in ‘red’, but it will also be the right time to ask for a ‘Settlement agreement’, an agreement that UEFA denied in the past but which now seems possible for Milan.