AC Milan continue to plan for the future by protecting their young core but there are still some key renewals that must be resolved, a report claims.
La Gazzetta dello Sport reports that eight contracts of the current squad were renewed in this calendar year: Theo Hernandez, Tomori, Tonali, Kalulu, Pobega, Krunic, Ibrahimovic and Gabbia, listed from the most to the least expensive.
Read SempreMilan ad-free and get access to exclusive news. Click here for a free trial!
In addition, the option right for Antonio Mirante was exercised in July and the permenent signings of Alessandro Florenzi and Junior Messias arrived in the summer. The management hope three other starting players will also renew: Rafael Leao, Ismael Bennacer and Olivier Giroud.
Milan have allocated almost €107m for those eight renewals, a figure that includes salaries this season and in the following ones, up until the agreement expires. Some players benefit from the reduced taxation of the Growth Decree, but others do not.
The paper claims that the three remaining renewals – Leao, Bennacer and Giroud – would cost almost the same. When factoring in the salaries being asked for and the gross amount, they would cost the club around €93m, so €200m in total.
Before talking about individual situations, there is obviously a general question because the management of renewals is the most important step for the definition of the future Milan. The owners have always paid great attention to the containment of the wage bill, but maintaining that stance will see big players leave.
It could be that Milan in the future will be based on the income-investment ratio, i.e. the more they collect from sales, the more that will be invested in the squad.
There is another dilemma too: accepting the requests for a big pay rise from players and agents means getting new requests for a pay rise other players in the squad. In all the dressing rooms in the world comparisons happen and salaries are requested in proportion to the earnings of the team-mates. Milan, so far, has managed to maintain a balance but now things get very interesting.
It’s clear math.
Leao has 1 more year of contract which will bring him 1,5 mil €. After that if he leaves and do 4 years in any other team that will for sure offer him not less than 8 m € ,it is a sum of 33,5 m € for 5 years.
Now imagine if he sign contract with us right now for about 5 m € per year that we offer him,it’s would be a sum of 25 m €.
The difference is 8,5 m € from first option.
So ,i am guessing he would agree on 6,5 per year which would be a sum of 32,5 m €.
The problem is that our menagement most probably did not offered him more than 5 mil € per year. For the end imagine that there is probably teams that would offer him 10+ mil € per year like PSG, Real M or M.City which would mean 50 mil € for 5 y contract. It would make to much difference in offered contracts.
Quote: “accepting the requests for a big pay rise from players and agents means getting new requests for a pay rise other players in the squad”
This is a fallacy in logic. All current Milan players who extend are already proven on the pitch. If others request bigger salaries, that means they already have excellent performance on the pitch. But Milan’s bench is not so strong and it is replaceable.
For example; If Dest wants to play for Milan, they must give him a lower salary than Kalulu. Kjaer already passed peak performance, and Florenzi too. Rebic must be happy to be at Milan for 3mill net. Krunic also. All others are lower-profile players compared to players who got extension. Charles can double his salary – but only when he doubles Brahim Diaz’s current performance.
Good luck and be smart in the future transfer market.