AC Milan are expected to record a consolidated loss this year, and the board will meet shortly to finalise the accounts.
Qualifying for the Champions League was a must for several reasons, but the most important is – and will always be – the financial aspect. It brings a huge purse which the Europa League isn’t close to replicating. So, whilst being in Europe is better than nothing, Milan are still chasing their losses.
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Milan expected to record €25m loss
Earlier today, Pietro Mazzara looked at the situation a little, in relation to the need for a Head of Football. Now, MilanNews have now relayed Tuttosport’s report looking at the situation in a little more detail.
After years of profit, the Rossoneri were expected to drop into the red this year and the club’s Board of Directors will meet within the next 48 hours to approve the financial statements, which will be presented to shareholders in a month.
The report states that a consolidated loss of around €25 million is expected, largely due to the failure to qualify for the Champions League. But it’s worth remembering that the club will not be in danger because of this.
In other words, there is no need to worry about the loss thanks to the work in recent years.
I always said this club is not profitable if selling players is the only way to stay in the black. So ofc this loss of 25M is going to happen. I promise u someone now has to be sold to cover the lose. A few players so as to accommodate the amortization.
So when people keep saying the club has money to spend, no it does not. There is a threshold the club can be in a loss for 3 successive years. But it has to come up to 60M. So basically getting back into UCL is essential, and preferably winning the league so as to have enough money so as to not sanaction the salle of players. But that isn’t going to happen.
and now they don’t have anyone left that can generate huge profit margin and we are out of cl…. redbird way is not the way and I don’t agree that the club doesn’t have money to spent, Roma did spent significant sum on their return to CL betting to solidify that CL spot for them for years to come…. Redbird was cheap and was recording insignificant profits the previous years and sold players without clear plan to replace them which goes to my point that redbird is incompetent to run this club and the only solution for us as fans to be hopefully is for redbird to gtfo. As always Forza Milan and FY Gerry
Nu är läge att sälja klubben.
Loss is huge because they were selling best players.
Just to compare Inter, Inter now have 530 million of revenue with small capital gain.
Milan have 430 million with 100 million of capitql gain.
It is 200 million difference without players sales.
So basically year by year with RedBird philosophy, doesn’t just losing trophies but huge revenues, because Inter is collecting money – because they are winning the trophies.
But its good for Cardinale to compare himself how bad work he is doing here.
In 2026 2027 season cost of team is up 30+ million, and revenues of players sales for now is Leao 28 million of capital gain + probably Morata, Reijnders, Liberali and possible Tonali bonuses sale.
So it is obvious that in this season they need to collect such a huge difference than in 2025 2026 season.
Ok, going by the numbers you stated, if Inter generated €530 million and AC Milan generated €430 million, then instead of you to look at it as “I200 million difference without players sales” it’s better you look at it this way.
1. Remove Inter Milan’s UCL revenue of approximately €100 million from participation fee, TV rights and stadium tickets.
2. Remove AC Milan’s capital gain of €100 million.
The numbers would look like this:
– Inter would generate €430 million, whereas
– AC Milan would generate €330 million
The €100 million capital gain by AC Milan was simply to avoid much loss.
I think despite missing out on Europe, we tried to minimise our loss.
Majority or around half of the €100 million difference between the Inter’s €430 million and AC Milan’s €330 million are due to factors beyond Redbird as Inter Milan basically earn €30 million more than AC Milan in domestic TV rights distribution.
This means that despite the rough season, without capital gains and Inter’s UCL revenue, they were only around €60 – €70 million better than Milan in terms of revenue. This is an indication that had we qualified for UCL, we wouldn’t have needed the €100 million capital gain because it would have come directly from UCL.
“The report states that a consolidated loss of around €25 million is expected, largely due to the failure to qualify for the Champions League. But it’s worth remembering that the club will not be in danger because of this.
In other words, there is no need to worry about the loss thanks to the work in recent years.”
Yea you guys pointed to our net asset of 199m as the basis for not having a cause for concern in that linked article. I disagree wholeheartedly.
Our work in recent years (which was good and I give them props for that) can very well be undone in quick time. Remember we’ve only now come out of FFP settlement agreement and did well to do so but it doesn’t mean we are not under any financial rules. Current financial rules require us to have a loss of only 60m over three years (our previous settlement agreement is largely the current set of rules in any case). Based on last year’s loss of 25 and, according to transfermarkt, we have a net loss strictly on a player sale basis another 75m, roughly speaking,.for this year. That’s a 100m cumulative loss assuming no other changes. We’d be short 40m going into “year 3” on our high end of the cap. This means we either sell players to net at minimum 40m or hope and pray we get back into the UCL or we get a surprise sponsor/revenue upticks somewhere or some combination of those. And the remaining 60m loss has to be covered by the owner, who so far has a model of self sustaining budgets ie he’s not going to put his own money to cover the losses.amdnhas never done so. So from what I’m seeing is basically everything hinges on us getting to the UCL next year.
So maybe the statement needs to be qualified in that in the short term there isn’t any cause for concern but in the medium term there definitely is.
Wow you think a lot of yourself 😂 to assume you understand the accounts based on the very limited and incomplete information you have. Also your premise for how FFP compliance calculated is wrong. Milan generate other forms of revenue outside of player sales and FFP is more than if you make money off of sales. Milan already have 40M in sales guaranteed for next season and there likely will be more. Also several salaries come off the books and there’s always the potential other on loan players are sold. But what really changes the game is sponsorships and those deals which things seem very healthy for
40M in sales guaranteed? How is that i.e. how come?
Leao €40 million
Jimenez €20 million
Morata €10 million
Coombo & Pobega €15 million
That is €85 million guaranteed in the 2026/2027 statement of financial performance.
OK, that’s for this season, he said “(for) NEXT season”.
Yeah, it makes sense. However, we are still waiting for Nelli’s response, he should clarify this.
I do agree with you, we await Nelli’s clarification.
*how so
I honestly do not know anything about that.
I interpreted it as the next season financial statements which would be this season since financial statements are retrospectively presented.
But I do understand your point based on “next season”.
It was a very crude way of portraying the point, yes. It’s why I did mention “assuming no other changes” as there are other things which can confound the result ofc. And I did mention sponsorship etc. but I don’t believe that those can cover a 100m hole. I doubt we’ll be able to cover that just from salaries, sponsorship or any other form of revenue growth. It would be a 20% growth required and that’s insane, even moreso without ucl money. Regardless of anything else, that one component of our budget (transfers) has a 75m hole this year. Don’t you agree?
Genuine question, how did you come up with 40m in sales for next year? I recall maybe Reinjders and maybe Tonali sell on clauses but not sure of others. And what of the remaining 60m? Do you think Gerry is likely going to foot that bill with his own money? Lol..do you think he’ll even foot the 25 ? 😂
Btw, I’m dealing with the overall loss component of the Financial rules, so it doesn’t really matter where the source of the revenue comes from. And we both haven’t factored in amortization so there’s that as well.
Actually scratch all of that as I’ve given more thought on it. Re the every end of my post on amortization might be more important than I first pondered. I think that given the costs are going to be amortized, it may work out now that I think more about it. It would be around one fifth (using a ball park figure as most contracts around roughly that in length and many of our players are amortized that way), our total spend of around 165m this summer becomes an annual cost of around 35m on the fees alone. This is assuming the revenue from sales is a wash with the outgoing amortized costs of the respective players… which I think it is for everyone except Leao, in a positive way to the accounts. So I think Leao might give us some meaningful cap gains that would help the accounts. I’m assuming here though. Otherwise it would be some serious math I’ll need to do depending on the book value of each out going transfer and what came in. I know it’s available online but it’s still a drag to calculate.
But yea, I think I was initially off on my initial premise. I took the whole cost into account in one shot rather than over time. My mistake