AC Milan are the only top Italian club who have the financial capacity to invest without selling and this is reflected in their summer budget, a report claims.
According to MilanNews, Milan are looking for a starting striker, defensive midfielder, centre-back and right-back this summer and the management will have a figure of around €90-100m in order to find those players, which has been broken down.
In case you missed it, over on our Substack we analysed the predictions for the 2023-24 accounts and what this means for the availability to spend during the upcoming mercato, which is available as a free read and confirmed the numbers.
Of course the numbers given above must only serve as an indication, as a sort of guideline in view of the mercato, because there are complex and in-depth discussions to be had regarding the cost of the squad, divided between depreciation and salary amounts.
There will be around €70m in total depreciations this year, while another €19m will come from the farewells of Olivier Giroud, Simon Kjaer, Mattia Caldara and Antonio Mirante. The sales of Rade Krunic and Junior Messias plus the increasingly probable one of Charles De Ketelaere boost the budget even more.
In a nutshell, Milan have the strong possibility of investing given by two factors: creation of further space in the budget through exits plus a notable cash flow given by the various revenues.
How does that work with regards to Financial Fair Play? Clubs participating in UEFA competitions can have a squad cost equal to, at most, 80% of revenues (next year it will drop to 70). Milan are well below that limit, with a cost of around €225m and revenues of about €450m.
It is even permitted for Milan to make a €60m loss as we explained in our piece, but that is not something that is likely to happen because the owner will always start each summer from the desire not to go into the red again.
It has been a trend that revenues have grown, but without a club-owned stadium they do not do so quickly, and without that the club could therefore enter a loop that requires capital gains every year to ‘justify’ this difference in revenues. Otherwise, deep European runs would be needed.
This is certainly what everyone hopes for, but it is also important to understand that an ownership group must reduce the risk to a minimum. Relying on something as volatile as sports performance would be a beginner’s mistake, even if ambition is expected too.
Us not being linked to any left backs when Theo is supposed to be sold makes me think he’s staying
We already missed Kessié and Bennacer was injured for months when they suddenly decided that we could sell Tonali. Then they looked for a replacement. This management is usually reacting rather than planning things. But Théo is in Australia so maybe there is hope that they want to keep him.
Come on. It’s operating costs (Daily, monthly, yearly expenses) vs capital expenditures (One time expenses).
Buying player takes away from capital budget.
Expiring contracts gives back to operating budgets.
Unless they don’t replace those operating costs or replace them with less expensive contracts, those savings don’t easily translate to capital budget.
But Maldinis Heir said we need to sell everyone and everything is doomed.
Reality: Turns out we are on better financial footing than any other team in Italy, and in the long run this will matter in a big way.
That’s the reality. And when we are able to spend, those that are critical won’t be saying anything else.
The media can write what they want, but the club management will not spend 100 million unless they start selling one of our best players ! What worries me is the fact that for those three or four quality players who make a difference in the positions we need, the management would have to allocate almost exactly that amount ! And what conclusion should we draw based on those facts !?🤔
“It is even permitted for Milan to make a €60m loss as we explained in our piece, but that is not something that is likely to happen because the owner will always start each summer from the desire not to go into the red again.”
And this is why we will never be an elite club that consistently wins titles and challenges for UCL under Redbird.
Which club in italy can consistently win scudetto except juve or challenging for CL title ? Last season both milan club just lucky in CL not getting strong opponent like bayern muenchen,manc city ,real madrid . Winning CL are just dream for italy club for now except italian club have financial like EPL club
Media hyping us so we’ll go into summer with a boner expecting 100 millions from their coffers. Sure. Maybe after they sell one of our stars and then hunt the 20 millions + bonuses moneyball targets and expect Fonseca to perform miracles.
The Article should be one sentence only (to answer the question raised in the title) ..
Cuz Mr Cardinale is cheap as F&(#$*
Just sell the club to somebody who isn’t broke you clowns. It’s disgraceful that this is allowed.
They are running Milan, a historic club, as if it were a small club like Marseille.
Milan owners are not broke. They operate sustainably. But I see you want to operate like Manchester City. The same Manchester City that has 115 charges of financial irregularity against it with a major investigation. That title they won? It may be stripped away from them.
If YOU want to do BUSINESS without BIG BIG BIG ambition to get trophies, then you should make CLUB COMPANY like in WALLSTREET and build public shares and cycle it up with fans in the world 😀