MN: Milan to enter new Settlement Agreement with UEFA in 2021 – why the signs are good

By Oliver Fisher -

After a year out, AC Milan are back in European competitions as they will take part in the Europa League qualifiers next month.

As MilanNews notes, the return reopens that Financial Fair Play issue and means that a new Settlement Agreement will have to be negotiated and signed.

It will not become active until 2021 and of course depends on Milan qualifying for Europa again, plus it will have to take into account both the year after COVID-19 and the fact that the Rossoneri accounts are improving.

The 2019-20 financial year – burdened by the objective losses caused by the Coronavirus – closed at around €100million in losses, a clear improvement compared to €-146m in the 2018-19 accounts, which marked the record deficit in the club’s history.

The reduction of costs and the attempt to increase revenues are the two routes that the club are pursuing, with the aim of making the balance sheet more prosperous, which could also allow for more important movements on the market.

MilanNews add that in the eyes of UEFA, the improvement is very important, because in Nyon they take this index as an element of willingness on the part of the clubs to get back in line with the current parameters, which will soon be subject to reform.

To help Milan there is also the discount that UEFA will apply on lost revenues, meaning that there is not a big burden to recover after the effects of COVID.

 

Tags AC Milan