There was some initial scepticism about AC Milan’s American ownership – first with Elliott Management and now RedBird Capital – but the work they have done speaks volumes.
MilanNews writes that running a football club in the modern era is increasingly difficult to do on an economic-financial level and especially in Serie A, a league that presents various difficulties.
Nonetheless, Milan are continuing their path towards self-sufficiency with tangible numbers that underline the importance of Elliott’s management before and RedBird now.
The Singer family fund gave the club a much more corporate structure which is more up to date even in the sporting world, and what they did led to a cut in the costs that were contributing to huge losses.
Red Bird’s first year, however, opens with a net profit of €6m for 2022-23. A plus sign in yearly accounts had not been seen since 2006, and at the time the balance sheets were based on the calendar year and not on the sporting season.
This most recent result that was unthinkable just five years ago, when the reckless spending of the Chinese management racked up losses of nearly €200m, requiring drastic intervention and a Settlement Agreement with UEFA.
Today Milan are an example of financial virtuousness and a continuously updated, positive model. However, this has not been at the expense of investment in the playing squad as many feared.
RedBird are also putting cash into the mercato, given that there were 10 summer signings for around €130m and there has been an increase of €50m compared to the 2021-22 season in‘rights to the players’ performances’.
The consolidated net equity as of 30 June 2023 is €177m, a clear increase compared to the €131m in the 2021-22 financial year. Milan are showing new peaks of positivity also in terms of revenues, which have risen above €400m thanks to new commercial endeavours, sponsorships and the Champions League run.
There will not be any champagne corks popping inside Casa Milan, though. If at other clubs they pass off a loss of €80m in the balance sheet as miraculous with debt reconversions and similar tricks to stay in line with the rules, the Rossoneri are thinking further ahead.
All this is while waiting for 2028, the year in which Milan should have their own new operational stadium. Then they will tackle the challenge of obtaining €500m in revenues per year, in order to build an even more competitive squad and continue the cycle.
120 million gained from reaching semi finals champions league .
It is essential that uefa disperse the money from champions league qualification more to clubs that can’t easily reach knock out stages.
I know there was much skepticism about an American owner, but it is very much true that the savvy American owners will absolutely run profitable organizations. Owning a sports team in the US is a money-making opportunity and unless you’re foolish, you will make lots of money.
As long as you are also committed to winning, the formula absolutely works and becomes self-sustaining. Hopefully that is what we’re seeing here. Spending+winning=profits, and everyone involved is happy.
We have seen only Elliot until now. Closing down the balances that chinese left and bring back Milan competitive in Serie A by bringing in Maldini, dida etc., in management.
We have only seen selling players and bring young players again from redbird even after making profits in balance books.
Nothing yet concrete yet from redbird if they work for club to be competitive in champions league or only for profits.