AC Milan’s financial losses for the 2018-19 season – the first under Elliott Management – are higher than being reported, according to La Repubblica.
On Monday, il Corriere dello Sport (via MilanNews.it) took a look at the financial situation of the Rossoneri and claimed that Elliott are expected to cut losses by €36m in their first 12 months.
The American fund seized control of Milan a year ago when previous owner Yonghong Li defaulted on the repayment of loans he owed.
The report claimed that Milan registered a loss of €126m in 2018 and are expected close at a loss of about €90m this year.
However, La Repubblica are not as optimistic in their assessment, as they believe that the actual losses are around €155.9million.
They also claim that the losses for 2017-18 were higher than other places are reporting and were in fact €135.6m.
However, Ivan Gazidis ‘made a move typical of managers in their first year of assignment’ by providing a ‘budget cleanup’ essentially trying to start from scratch.
Elliott have already put up the money to cover the losses and finance the current season, the report adds, funds that will now be converted into shares to avoid launching a capital increase.
As per MilanNews.it, this change has come from:
– Lower income from player management f €16.5m
– Higher player management costs of €11.1m
– Higher personnel costs of €35.3m
– Higher costs for services of €5m
– Lower income from sponsorships, sales and royalties of €6.8m.
These were partly mitigated by:
– Higher income from the sale of audiovisual and media rights of €4.5m
– Lower depreciation and write-downs of €17.8m
– Lower provisions for sundry risks of €10.7m
– Lower net financial charges of €13.5m
There was also a net increase in revenues and non-recurring costs of €4.9m, together with lower taxes of €2.4m.
Here are the key transactions from last season, via MilanNews.it:
– The transactions involved an increase in capital invested of €103.2m
– Capital gains generated by the sales amounted to €12.6m, while the capital losses amounted to €0.4m.
– Players purchased on a permanent basis: Abanda, Caldara, Castillejo, Paqueta, Djalo, Laxalt and Piatek, loans of Bakayoko and Higuain.
– Players sold: Antonelli, Bacca, Bellanova, Bonucci, El Hilali, Guarnone, Kalinic, Locatelli, Sanchez, Simic, Gabriel, Vergara and Vigolo, as well as Bargiel, Gustavo Gomez, Halilovic and André Silva on a temporary basis.
– In January 2019, the loan agreement with Juventus of the player Gonzalo Higuain was terminated by mutual consent.
– During the financial year 2018-2019, the Plizzari contract was renewed until 30 June 2023.
– Contracts terminated by mutual agreement: Cavagnera, Tiago Dias and Strinic.
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