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.
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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).
