MN: The impact of Paqueta’s sale on Milan’s accounts – an impressive deal from Maldini

By Oliver Fisher -

AC Milan are set to record a small loss on Lucas Paqueta if his sale does go through for the reported amount, it is claimed.

Numerous sources are reporting that Paqueta is all set for a permanent move to Lyon, and MilanNews also relay the information that Milan will collect €20m plus a percentage on future resale.

They also discuss the impact on the balance sheets, recalling that Paqueta was signed from Flamengo for €38.4million, which then underwent a decrease of €520,411 thus bringing the net to €37,879,589m.

In the accounts for the financial year which closed on 30 June 2019, an amortisation of €4,208,843 was recorded for the first six months of Paqueta’s contract, so the net value had fallen to €33,670,746.

From 1 July 2019, the annual depreciation rises to €8,417,686 and in the table included in the budget that will emerge in a few weeks, we will read that the net value at 30 June 2020 of Paquetà was €25,253,060m gross of further write-downs.

With the transfer that is taking place in these hours, Milan have been able to continue the amortisation phase of the player for another three months, each of which has a value of €701,473.83.

Consequently, adding up the instalments, the amortisation rises to €2,104,421.50 which bring the net value of the player in terms of fee still owed to €23,148,638.50. With the guarantee of cashing in €20m, it means a €3.1m capital loss but at the same time there would be a reduction in the amount of salary paid out.

Much will depend on the official figures, any bonuses and the percentage of resale that Milan will have in their favour, but above all it seems an economically sound deal for a player whose asset value was decreasing faster than his book value.

Tags AC Milan Lucas Paqueta