AC Milan’s financial results for 2022-23 emerged over the last 24 hours, and they of course have a direct bearing on the Settlement Agreement still in action with UEFA.
According to Calcio e Finanza, the Milan Board of Directors of the met yesterday to discuss and close the accounts for the 2022-23 season, which ended with a positive net result of €6m and revenues exceeding €400m – a club record.
Lawyer and football finance expert Felice Raimondo has stated on Twitter that if those indications are correct, Milan is fully in compliance with the Settlement Agreement stipulated by UEFA.
Not only that, but he adds that Milan ‘can afford to push on the accelerator and go beyond it’ because the objective is to fall within the maximum expected aggregate deviation of €60m, that is the result of the sum of any deficits that will be recorded in the financial years ending in the 2022-23, 2023-24 and 2024-25 seasons.
Furthermore, Milan also respects the intermediate requirement which imposed a maximum aggregate deficit of €60m by 30 June 2024 (result of the sum of the deficits of the two previous financial years 2022-23 and 2023-24).
In the latter year the Sandro Tonali capital gain will give a further boost to revenues which will probably approach €500m, so that is another positive aspect.
Therefore, if Milan close the 2022-23 balance sheet with a net profit, they will be able to afford to increase costs in the next two financial years – ‘perhaps for the great striker’, Raimondo adds.
Furthermore, the squad cost rule (ratio between the sum of relevant expenses and relevant revenues) for all clubswill be set at 90% in 2023-24, then in 2024-25 it will drop to 80% and in 2025-26 it will be fully operational at 70%.
What about Inter and Roma? Their important monitoring period will start from the current 2023-24 season, and their operating result will be evaluated both in the intermediate monitoring (seasons 2023-24 and 2024-25, with a maximum deficit of €60m) and in the final one (those two seasons plus 2025-26, again a maximum deficit €60m permitted).
So this means we can go for a 50m€+ striker without selling anyone?
nope
With Tonali sale, to gain 500 million Milan must have same amount of revenue from champions league – semi finals.
It is difficult to expect same result or even to pass this season group.
Players sale is essential but also to save the money from invested players who didn’t settle well. Players like de keteleare. After this season we might will have some players who have big wage and depreciation but not good impact in games. That’s why is good to sell those players and save I expenses.
Next year some clubs will have 30 million revenue more from champions league, that’s why is essential to have every year best position in Serie A.
400 mil without players sale is excellent job, and now club must keep up good work with best arrivals in mercato.
Does Cardinal finally can allow us bringing gems players out of Serie A without emphasazing on Growth Decree ?
Ummmmm where is the money going? 400m is alot. Esp for a wage bill as tight as ours. According to capology, it was around 95m last year. So where did the other 300m go? I get advertising etc. But 300m 🤷♂️
Oh nvm… I just read the balance sheets. Seems cost of personnel is around 160-70 mil. Meaning some CEOs be getting paid top dollars if the players are around 100m 👀👀👀. We can literally be up another 30-40m in that regard 🤪 but I doubt that’ll change. Also “Cost of services” is quite high at 70m and that includes consulting costs (yikes 😬!!!) And cost to rent San Siro. Depreciation and amortization is around that sum too. That’ll bring you to around 300m and its easy to get with other costs. Hmmmm interesting 🤔
You forget about renting the San Siro, renting offices for the workers etc.
Yep sorry, check the second comment I have there for the breakdown. Seems cost.of service, amortization and management pay make up a chunk of it
The money go to pay debt + interest to elliot. Redbird owe 600m euro to elliot. Or maybe the cost of new stadium in san donato
hahahahahahahha.. thats a good one