The latest update on Financial Fair Play gives Milan a hand in their journey back to the top, according to a report.
This morning’s edition of La Gazzetta dello Sport (via PianetaMilan) reports that Milan could benefit from Financial Fair Play 2.0 as the insane expenses of Chinese ownership are now behind them, and Elliott Management have changed the strategy to one that has the accounts looking much healthier.
Milan were of course excluded from the Europa League in 2019 , after the verdict of the Court of Arbitration for Sport, signing a settlement agreement which involved a significant commitment in terms of cost reduction.
The Covid crisis did not help Milan as the last budget was in the red of €194.6m, but the debt has already fallen to just over 100 million euros. There is still a long way to go but the turnaround is absolutely positive as CEO Ivan Gazidis is helping relaunch the club in a responsible way.
If the old rules of Financial Fair Play had remained, Milan would have to get their losses down to €30m (the ‘break even’ rule ) in the three-year term, a practically impossible task, but the reform of the system on the horizon gets rid of this target.
There is talk of introducing a salary cap or an additional tax for those who spend more than a certain amount on the market, similar to the luxury tax system that American sports use, and Milan can breathe a sigh of relief. A return to the Champions League is needed to bring new resources and an increase in revenues, while an investment is planned for the new stadium, but the future appears a lot brighter.