AC Milan's Financial Situation Thread

Last summer the San Siro museum was the most visited museum in Milan which is why the San Siro Duemila consortium, Inter and Milan, have decided to upgrade and give the visitors a suprise with a new multimedia hall.

MILANO - The San Siro stadium and its museum is a real monument to the city of Milan, to the world of football and to the thousands of people who visit daily.

Last summer the San Siro museum was the most visited museum in Milan which is why the San Siro Duemila consortium, Inter and Milan, have decided to upgrade and give the visitors a suprise with a new multimedia hall.

The hall, that allows guests to interact with virtual games and multimedia accessories for both AC Milan and Inter, was inaugurated today by Franco Baresi, the great captain of Milan from the past, and Alfonso Cefaliello, in charge of finances at the club, while Mario Corso and Milly Moratti were there to represent Inter.

This is a new step towards building a stadium of the future, that includes not only the the concepts of passion and faith but also createsw a web of social networks around the world.

As Cefaliello explained, today's event is the start of a new way of thinking that will improve the stadium and hopefully bring it in line with the best around the world so that the San Siro will be able to host the Champions League final in 2015.

The new hall will be open to the public from February.

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dhorasoo said:

Yeah, what Wikipedia doesn't seem to mention is that Cragnotti continued buying players he hadn't money for (I'm thinking Mendieta, Veron, Crespo, Salas, Lopez,...) till 2002, when he had to sell alot of their star players - like Nesta and the same Crespo - to avoid bankrupcy. Cragnotti is a clear example of how you SHOULDN'T run a team. Thank God Milan has Galliani who refuses to spend any money Milan doesn't have.
Cragnotti style for me = making a great team and then keep on buying expensive players untill you go bankrupt

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Deloitte’s annual report on European football revenues has been released, and it reveals that once again Spanish giants Real Madrid and Barcelona top the game’s money league.

The top six places for the latest report – based on season 2009-10 - remain unchanged from last year’s, with Manchester United, Bayern Munich, Arsenal and Chelsea maintaining the status quo.

Here is football’s Top 20 in full:

1st
Real Madrid
Last year: 1st
£359.1m
(£341.9m) Up 9.2%
Revenue: €438.6m Last year €401.4m

Real top the money league for a sixth consecutive year, despite exiting the Champions League at the first knockout stage once again and trailing in behind Barcelona in La Liga. Able to negotiate their own individual broadcasting deal, they brought in £129.9m (€158.7m) which is more than the total revenue for half of these top 20 clubs. Matchday revenue increased by 27%, helped by the Bernabeu playing host to last season’s Champions League final.

2nd
Barcelona
Last year: 2nd
£325.9m
(£311.7m) Up 4.6%
Revenue: €398.1m (€365.9m)

Spanish league champions for a second year running, but they lost ground off the field to fierce rivals Real – though they did move away from Manchester United in third place. A 9% growth in commercial revenue took them up to £100m (€122.2m) in that area alone, with matchdays worth £80.1m (€97.8m) and broadcasting deals a further £145.8m (€178.1m). Selling shirt sponsorship for the first time for a record £135m (€165m) over five and a half years should help bridge the gap to Real.

3rd
Manchester United
Last year: 3rd
£286.4m
(£278.5m) Up 2.8%
Revenue €349.8m (€327m)

The Carling Cup was the only silverware on show at Old Trafford after season 2009-10, but the club continued to have steady growth financially. Broadcasting accounted for 37% of all revenue at £104.8m (€128m), a 5% rise from the previous season. Commercial revenue grew by 16% helped by deals with Turkish Airlines, Betfair and several telecommunications companies. Matchday revenue fell by 8% due to comparatively early exits from the Champions League and FA Cup.

4th
Bayern Munich
Last year: 4th
£264.5m
(£246.6m) Up 7.3%
Revenue €323m (€289.5m)

A German league and cup double and a run to the Champions League final ensured Bayern closed the gap on Manchester United in fourth in the money league. Revenue exceeded €300m for the first time, helped in no small part by a 20% hike in broadcast revenue thanks to their extended Champions League run. However, Bayern topped the commercial revenue league – amassing £141.6m (€172.9m) on that front alone.

5th
Arsenal
Last year: 5th
£224.4m
(£224m) Up 0.002%

Revenue €274.1m (€263m)

Arsenal best depict the difference in exchange rates of Sterling to Euros from last year to this. By Sterling, their revenue barely grew at all; by Euros, they managed a 4% overall growth. However, the sale of property at their former home of Highbury raised £157m (€192m) and is not included in this money league figure, which is restricted to football revenues. Matchday revenues fell due to fewer games at the Emirates in 2009-10, but still accounted for 42% of Arsenal’s overall total.

6th
Chelsea
Last year: 6th
£209.5m
(£206.4m) Up 1.5%

€255.9m (€242.3m)

Double winners for the first time in the club’s history, and yet Chelsea’s matchday revenue fell by 10%, something that has never happened in Roman Abramovich’s time at the club. An early exit from the Champions League certainly hindered progress in that area, but commercial revenue (up 7%) and broadcasting revenue (up 9%) more than made up for that shortfall.


7th
AC Milan
Last year: 10th
£193.1m
(£167.4m) Up 15.4%

€235.8m (€196.5m)

Participating in the Champions League again after their absence in 2008-09 certainly helped Milan climb the money league. To put it in perspective, their run to the last 16 of the Champions League earned €23.4m in broadcast revenue – their participation in the Uefa Cup the previous year brought €400,000. Milan sit third overall in broadcasting revenue, thanks mainly to being able to negotiate their own domestic deal. But that will end when the next money league is announced, so expect a drop back down this table in 2012.

8th
Liverpool
Last year: 7th
£184.5m
(£184.8m) Dn 0.002%

€225.3m (€217m)

Attendances at Anfield fell by 2% in 2009-10, and yet matchday revenue was slightly up on the previous year. Broadcasting revenue was up by 7%, aided by reaching the last four of the Europa League, and accounted for 42% of their overall revenue total. Just as they have done on the field, Manchester City and Tottenham could overtake Liverpool in the money league next year.


9th
Inter
Last year: 9th
£184.1m
(£167.4m) Up 10%

€224.8m (€196.5m)

Success unlike no other they’ve ever tasted on the field, and yet Inter remain resolutely ninth in the money league. Matchday revenue increased by an incredible 37%, but is still only the 12th highest of any club. Like Milan, their broadcasting revenue dominates at 62% of the final figure, and the £112.9m that brought in is third behind only Real Madrid and Barcelona.

10th
Juventus
Last year: 8th
£167.8m
(£173.1m) Dn 3.1%

€205m (€203.2m)

A drop of two places from last year, and the Old Lady is no longer the top revenue-earning club in Italy. Matchdays account for just 8% of total revenues, and it can only be hoped that the opening of their new stadium next season boosts that element. With a shared broadcasting deal coming into effect, and this season’s absence from the Champions League, expect Juventus to fall out of the top 10 next year.

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11th
Manchester City
Last year: 20th
£125.1m
(£87m) Up 43.8%
€152.8m (€102.2m)

The biggest climbers in the list and with a whopping 43.8% overall increase on their 2008-09 figures, City are becoming major players thanks to growth in all areas. Commercial revenue more than doubled to £46.7m (€57m) while matchdays grew by 17%. The interest in Shiekh Mansour's revolution has also contributed to a boost in broadcast revenue, with more City games being shown live on television meaning an extra £5.8m coming into to the club. To continue their rapid rise, though, they will need tangible success on the field.

12th
Tottenham
Last year: 15th
£119.8m
(£113m) Dn 3.1%
€146.3m (€132.7m)

They may have edged out Manchester City for a Champions League spot, but the full effects of that will not be felt until next year's money league is announced. Broadcast revenue rose to £51.5m thanks to finishing fourth and thereby earning more of the Premier League's redistributed prize fund, but matchday revenue remains constrained by White Hart Lane's limited capacity - an issue that the Spurs board are courting controversy with as they attempt to find a new home.

13th
Hamburg
Last year: 11th
£119.7m
(£124.9m) Dn 4.2%

€146.2m (€146.7m)

The North German club remain the second highest paid Bundesliga club, but the rise of Tottenham and Manchester City sees them drop two places. The club reached the semi-finals of the Europa League, where they lost out to Fulham, but could only finish seventh in the Bundesliga. A lack of participation in Europe this season means that Hamburg could struggle to retain their money league position.

14th
Lyon
Last year: 13th
£119.6m
(£118.9m) Up 0.1%

€146.1m (€139.6m)

The seven-time Ligue 1 winners reached the semi-finals of the Champions League for the first time last season which contributed to an 11% increase in matchday revenue to £20.3m (€24.8m). However, matchday cash accounted for just 17% of the club’s income and Lyon's average league attendance of 35,767 is amongst the lowest of all the money league clubs.


15th
Marseille
Last year: 14th
£115.5m
(£113.5m) Up 1.8%

€141.1m (€133.2m)

The Cote d'Azur club may have dropped one place but it has narrowed the gap with French rivals Olympique Lyonnais. Winning their first league title since 1992 secured a place in the Champions League where they have progressed to the knock-out stages. Broadcasting revenues account for 50% of the club’s total revenues - £58m(€70.8m). The growth on the season before came from an increase in cash from the Champions League and Europa League.

16th
Schalke 04
Last year: 16th
£114.5m
(£106m) Up 8%

€139.8m (€124.5m)

With an average league attendance of 61,800 in the Veltins Arena and more than 90,000 members, Schalke enjoy a formidable following in Germany. Commercial revenue accounts for more than half of Schalke's turnover thanks to lucrative deals with sports rights agency Infront Germany, Gazprom, the club’s main sponsor, and adidas, the club’s kit sponsor, helping the club net an extraordinary £64.7m (€79m) of commercial revenue. Qualifying for the knockout stage of this season's Champions League should see them rise further next year.

17th
Atletico Madrid
Last year: 18th
£101.9m
(£89.4m) Up 14%
€124.5m (€105.0m)

Atletico Madrid won their first major trophy for 14 years when they beat Fulham in the Europa League final last May. Their performances in European competition also led to a significant windfall of £50.9m (€62.2m) in broadcasting revenue - accounting for 50% of their total incomings. However Atletico’s ninth place finish in La Liga in 2009-10 was not enough to seal Champions League qualification whilst their defence of the Europa League fizzled out with a group stage exit, meaning it's unlikely they will remain in the top 20 next year.

18th
AS Roma
Last year: 12th
£100.5m
(£124.7m) Dn 19.4%
€122.7m (€146.4m)

AS Roma are the biggest fallers from this year's money league, falling six places to 18th. This was largely down to their failure to qualify for the Champions League for the first time in four years. AS Roma pocketed the second lowest matchday revenue - just £15.6m (€19 m) - of any money league club (they narrowly beat Juventus). However they finished second in Serie A last season and their return to the Europe's top table in the Champions League should see the Giallorossi head in the other direction next year.

19th
VfB Stuttgart
Last year: n/a
£94m
(£85m) Up 10.6%

€114.8m (€99.8 m)

After finishing third in the 2008-09 season, VfB Stuttgart qualified for the Champions League before eventually going out to Barcelona in the last 16 last year. The run in the competition however helped them net record revenues. What differentiates VfB from other Bundesliga clubs in the money league is that its largest revenue source came from broadcasting (42%) as opposed to commercial income. Once renovation of their Mercedes-Benz Arena is complete, the Germans hope an increased capacity of 60,000 from 56,000 will boost growth.

20th
Aston Villa
Last year: n/a
£89.6m
(£84.3m) Up 6.3%

€109.4 m (€99.0 m)

Aston Villa return to the money league for the first time since 2003-04, replacing Newcastle who spent last season in the Championship. Their return to the top 20 was thanks in part to Wembley appearances in both domestic cup competitions. The club also finished in sixth place for a third successive season, which gave a healthy broadcast revenue of £52.1m (€63.6m) - 58% of their overall revenue. The club also opted to promote Acorns, a local children’s hospice, on its shirt rather than a fee-paying brand and so their commercial revenue of £13.1m (€16m) was comparatively low.

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Jasper said:

Cragnotti(?) style?

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acmilan4ever said:

Cragnotti was the president of Lazio during their most successful times. Also a very clever Italian entrepreneur.

Cragnotti presided over perhaps the most successful period in Lazio's recent history, ploughing in record amounts of money which attracted such luminaries as Pavel Nedvěd, Christian Vieri and Marcelo Salas. His successes included winning both Serie A along with the final European Cup Winners' Cup, both under the guidance of close friend, Sven-Göran Eriksson.

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dhorasoo said:

Yeah, what Wikipedia doesn't seem to mention is that Cragnotti continued buying players he hadn't money for (I'm thinking Mendieta, Veron, Crespo, Salas, Lopez,...) till 2002, when he had to sell alot of their star players - like Nesta and the same Crespo - to avoid bankrupcy. Cragnotti is a clear example of how you SHOULDN'T run a team. Thank God Milan has Galliani who refuses to spend any money Milan doesn't have.
Cragnotti style for me = making a great team and then keep on buying expensive players untill you go bankrupt

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acmilan4ever said:

I knew that but didn't want to highlight the negative bit, he started something fantastic, his bad luck played a big part in his downfall. Alot of owners nowadays are very cautious so thats why u dont get such well equipped teams unless you have a multi-billionaire backing you.

Nowadays you have Preziosi, Zamparini and De Laurentis doing some good business. Hope neither of these get caught up like Cragnotti.

Cragnotti was a very clever entrepreneur in his professional life up until he got involved with Lazio right after that Eurobond Fiasco. Nevertheless we will never see a business man get trapped like that unless its in La Liga.

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Sonny.Bill.Williams said:

JCI


I'm on a roll

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Marco Gullit said:

I'm happy for you. I'd rather read things than figure out if their in the correct forum, but hey, each to their own... Your like the forum clean freak

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Jasper said:

Um ... Double posting is the biggest sign that you don't read what has been posted rather than just post stuff when somethign finally gets to you through other sources.

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Marco Gullit said:

Could you not just post nicely saying that there is already a post, please post in there, your post will be moved by a mod shortly...

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Marco Gullit said:

Rather than the usual cheeky, sarcastic, down the nose comment like some sort of teacher pet

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Marco Gullit said:

Some manners wouldn't go a miss and would stop a lot of bickering and in fighting before it actually starts!

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Marco Gullit said:

Sorry if I didn't know about older threads relating to the topic I started and thank you for moving it, a nicer message would be nice next time

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Jasper said:

wat?

That is the way to go - hungry man, give fish, how to fish. Teacher's pet? Quite the opposite.

Manners can be defined differently. For you it's nice words from what I get. For me it's actions like thinking before posting(is it probably posted already? is this the right place for this?) + using search before posting + using intelligence age(internet usage) accordingly.

Won't happen.

I ain't going to play a Mary-Poppins-babysitter to trolling. Sorry. Smarten up or face sarcasm, cheekyness, troll-labeling.

(overall my comments aren't really that bitter as people read. For example when I have tried to teach people how to use the search or get the answer themselves)

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"I'm happy for you. I'd rather read things than figure out if their in the correct forum, but hey, each to their own... Your like the forum clean freak "

Jasper said:

"bla-bla bla-bla bla-bla bla-bla bla-bla bla-bla " - sorry for entering. Obv waste of time.

I'm glad you're succesful irl. Have fun, do your thing. I'll keep doing mine

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Boban1982 said:

We are in the shit and have lost a hell of a lot of money. Unless Silvio digs deep into his pockets i cant see much money being spent in the summer.

Copied directly from the AC Milan official site;


MILAN - The general assembly of A.C. Milan S.p.A., Milan Entertainment S.r.l. and Milan Real Estate S.p.A. have approved the financial statements for the 1/1/2010 - 31/12/2010 period. In addition, the consolidated financial statements were also presented, in compliance with the pertinent clause of the UEFA Licence manual.

The net revenues of the Milan Group amounted to €253,2 million compared to the sum of €307,3 million recorded in 2009.

The consolidated loss of the group is €69,8 million compared to last year’s €9,8 million.

http://www.acmilan.com/en/news/breaking_news_show/9011

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Anto is joined by Andrea Traverso, the Head of Club Licensing and Financial Fair Play at UEFA, to discuss the new reality that all European clubs will be facing in the coming years to restore economic common sense in the game. No club with European ambitions is immune as the UEFA club licensing system will restrict play in its most lucrative competitions should clubs not comply with its objectives. We also discuss the impacts of some of the new EU rules facing broadcast revenue, the potential issues that may arise with youth player development and the emergence of a supporter culture that now recognizes that the status quo is no longer sustainable. A must listen for all fans of European club football.

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ON THE CLUB’S FINANCIAL SITUATION
“There was a growth in ticket and commercial revenues, the latter thanks to our sponsors. On the other hand, however, capital gains decreased compared to the previous financial term, when we sold players such as Kakà and Gourcuff, while in 2010 we invested significant amounts in new signings. Then, due to the centralisation of the media rights distribution from 1 July 2010, our revenues coming from this segment also dropped. Ronaldinho’s sale doesn’t affect the financial statements of 2010, but it 2011 it will have a positive financial effect of approximately €12-13 million”.

ON FINANCIAL FAIR PLAY
“No question, we need to reduce our expenses, because from 1 January 2012, as for European Cups, the first three-year period of financial fair play will get into force. In accordance, in the 2012-2014 period, we won’t be allowed to record a loss greater than €45 million”.

ON THE BOARD OF DIRECTORS
“I would like to express my personal satisfaction regarding the decision of majority shareholder Fininvest to propose Barbara Berlusconi as candidate to join the Board of Directors.”

ON BOATENG
“Boateng is in co-ownership between us and Genoa with both parties holding equal rights and duties. We have a gentlemen’s agreement in place with the Genoa management and I believe we’ll keep the player”.

ON CONTRACT RENEWALS
“I intend to wait with contract negotiations until the end of the season. Every player knows this and now all of them are doing their job and focusing on the champioship. I believe that because of the mutual respect between the parties, whenever they may decide to go elsewhere they will inform us before going public”.

ON PATO
“Pato completed two seasons, in 2008 and 2009, without problems. We’ve made all kind investigations, even in the USA, and afterwards he didn’t have any more injuries until that backheel pass (against Sampdoria, editor’s note). He’s young and strong and we hope in his quick recovery”.

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Sven said:

Well, and me, with my administrative experience and business acumen, I want to suggest the following measures:

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Sven said:

Well, and me, with my administrative experience and business acumen, I want to suggest the following measures:

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amay said:

One of the major things that should be rectified other than Salaries of the players in the expenses department is the number of players on the team sheet.We have currently 33 First Team players at the club,that 10 more than the standard 23 .Its this sort of loose spending that needs to be curbed.
Of the 33 players only 3 are promoted from the Primavera Squad of last season.We desperately need more of these cheap youth players and cut back on players like Jankulovski,Oddo etc.

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Marco Gullit said:

Right, I'd start with the following measures:

. Flamini out, 8 - 10 million raised in transfer fee and 4.5 million saved in wages
. Dorf out, 4 million saved in wages
. Pirlo re-sign, 2 year contract, 3.5 million per year in wages, 2.5 million saved
. Gooch out, 1 - 3 millionraised in transfer fee and 1 million saved in wages
. Legrottaglie out, nominal saved wages
. Nesta re-sign, 1 year contract, 3 million per year in wages, 1.5 million saved
. Ambro re-sign on far lower wages, this should be his last contract
. MvB optional re-sign, I'd like to keep him but with Gatt and Ambro he's another DM taking a wage, on low wages he's an assett
. One from Zambo or Oddo out along with janku
. Bonera or Anton out, both could raise funds and save some wages

If we started with these changes and were strict with the contracts of new players coming in we can reduce our outgoings considerably. Mexes for free on no more than 3 million per year, Taiwo for free on reasonable wages to be competative in getting him over other teams. Finally Ganso or Sahin, even though they would be our star buys in the Summer both would command for less wages than Pirlo, Dorf or Flams!

I'd still hope for a second midfielder, but I think that entirely depends on departures... the more that leave the more we can expect I.d imagine, therefore I want all the players stated above out.

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Ashish said:

golden post

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