AC Milan's Financial Situation Thread

Dawn · Apr 11, 2015

So we're going to have another 60m loss this year. G is on fire :lol:

#BestCEOever

AC Milan to announce huge Serie A losses

Struggling Serie A side AC Milan could end the current season with an eye-watering €60 million debt, as their on-field difficulties continue.

Owner Silvio Berlusconi could be set to sell the club with Thai business man, Bee Taechaubol, seemingly in pole position to purchase a controlling stake in the San Siro side.

La Repubblica report that an American consortium has also shown a desire to make an offer for the Rossoneri but that with the lack of European football, the financial situation in Milan continues to become critical and may signal a sale of one or more of their players.

However, with Taechaubol remaining an interested party, it is assumed the club’s debts have not put off the prospective purchaser.

Milan currently sit eighth in the league and look unlikely to achieve even Europa League qualification this season.

MilanMB · Apr 11, 2015

General said:
^ I promise I'll re read your post and give it more thought...

When?

General · Apr 11, 2015

MilanMB said:
When?

I have a couple of things to catch up on this weekend. This is low priority

joyrider · Apr 25, 2015

MILAN – The Milan Foundation in 2015 have launched social inclusion projects for youths in difficulty through physical activity and sport. The projects are aimed at those from 12 through to 18, both Italian and those from abroad, that are going through tough personal and family situations and are in need of a helping hand to get their lives back on track.

The youths are offered the chance through sport and physical activities to develop their talents and at the same time receive a boost to their self-esteem and confidence. What is more, by being a part of a stable and structured environment they have an ideal chance to establish personal and working relationships all under the banner of respect for one another. All of this is made possible by expert group leaders who are side by side with the youths and support their development path.

You can now give your support to such projects by giving your 5 x 1000 to the Milan Foundation in the CUD, 730 or UNICO tax forms. By doing so you will be playing your part in the Milan Foundation’s aim to share with youths the important values that come from sport and help them take on their personal challenges in a positive manner.

crowdfunding :g:

Sod-Lod · Apr 26, 2015

The "following article can be find in "http://www.calcioefinanza.it/2015/04/25/*****cio-milan-2014-i-ricavi-scendono-a-224-mln-la-perdita-sale-a-942-mln/" a place where you can have an informative financial news of the top layer Seria A teams from a group of professional financial experts; it called "Calcio e Finanza"

Taarake · Apr 30, 2015

Galliani has the guts to claim that the debt of 94.2 Mills is not a big deal hhhh

Jasper · May 6, 2015

http://www.forbes.com/teams/ac-milan/

behind gobbi :head:

inter

article too - http://www.forbes.com/sites/mikeoza...ing-of-the-worlds-most-valuable-soccer-teams/

There are four Italian teams–Juventus ($837 million), AC Milan ($775 million), Inter Milan ($439 million), Napoli ($353 million) on our top 20 list, but none ranks higher than ninth. Their once great brand of Serie A has been diminished over the past decade from scandals, antiquated stadiums, bloody balance sheets and a decline in talent on the pitch. Given their huge fan bases, now might be the perfect time to buy one of these under-achieving teams.

Sod-Lod · May 7, 2015

Dawn · Aug 19, 2015

Great read about our financial situation

The 2014 Milan accounts

The accounts for the year ending 2014 were approved back in April, and give an idea of the challenge faced by any investor:

Milan made a net loss of €99m.
Turnover is down to just over €200m.
Expenses have increased to €294m.
The wage bill (on players) has increased to €116m.
Net debt is up to €340m.

EXPENSES (€294.139m; 2013 – €278.655m)

Expenses were up by just under €16m. The majority of that came from an increase in the players’ wage bill – up to €116m in 2014, from €99m in 2013. The players also earned €3.987m in bonuses in 2014. This all means that Milan paid more to the players in 2014 for the second half of a season where they finished eighth, and the first half of a season where they finished ninth, than they did in 2013, which featured half of a season where they finished in the top three.

Another contributing factor to the increase in outgoings was the €7.5m Milan has allocated for future expenses to sacked coaches. This refers to Clarence Seedorf, who signed a contract for €2.5m a season in January 2014, expiring in June 2016. As vice-president Adriano Galliani explained in his letter to the shareholders, Milan have chosen to allocate the entire fee due to Seedorf in the 2014 accounts, rather than split it down into chunks and account them across 2014, 2015 and 2016.

Other points worth noting here:

A new expense in the 2014 accounts is the lease for the Casa Milan offices. These are costing Milan €2.325m per year.
It cost €333,000 to get rid of Kak? a year early.
Amortisation of players increased a little from 2013, to €51.679m. Milan are still paying the fees of a number of players who have contributed very little, or turned out to be poor purchases, including: Alessandro Matri (€2.75m), Giampaolo Pazzini (€4.33m), Cristian Zapata (€2.6m), Robinho (€2.35m) and Valter Birsa (€1.01m).

NET PROFIT/LOSS (NET LOSS OF €99.069m)

As ever, Fininvest covered the full deficit on the balance sheet, with a payment of just over €53m due to cover the remainder of the €99m loss they have not already covered.

NET DEBT (€339.574m; 2013 – €256.362m)

Net debt has increased in 2014, which is a shame given that Milan were showing a positive trend in reducing net debt each year in the last few accounting periods.

Bank debt has reduced by around €3m, and debts to other institutions have also reduced by just under €30m. But overall net debt has increased because of a €131.294m deficit to Milan Entertainment – part of Gruppo Milan – for various services.

MISCELLANEOUS

A few other interesting bits and pieces, that didn’t really fit into the commentary above:

Marco van Ginkel cost €250,000 to loan until December. The remainder of his loan fee will feature in the 2015 accounts, which presumably will be another €250,000. So he cost €500,000 to loan for 2014/15.
Pablo Armero also cost €250,000 for the half season until December.
Kevin Constant was sold for €2.5m to Trabzonspor. Milan made an accounting loss of €3.318m on him.
Bryan Cristante was sold for €4.975m to Benfica.
Balotelli was sold for €20m to Liverpool. Liverpool still owe Milan just over €13m from that transfer. Milan made €4.33m on him in the accounts, due to a book value at the time of sale of €15.667m.
Incredibly, West Ham paid Milan €1.188m to take Antonio Nocerino on loan from January 2014 for six months.
Milan accounted a €700,000 payment from Genoa for the loan of Matri. Given that his loan was for the entire season, this will only relate to the first half of 2014/15. There will probably be another €700,000 payment in next year’s accounts, meaning Genoa will have paid €1.4m to loan Matri for 2014/15.

Jasper · Sep 6, 2015

de Jong and Luiz Adriano contracts look the worst deals.

Dawn · Sep 6, 2015

strikes again :fp:

3 x 3 x 2 = 18m wasted for #Dedication :fp:

Raz · Sep 6, 2015

Dawn said:
strikes again 3 x 3 x 2 = 18m wasted for #Dedication

The money isn't even the worst part. We're gonna be forced to watch him start for another year at least.
I would gladly pay 18 million if he just fucked off right now.

Allan_Sombrero · Sep 6, 2015

Dawn said:
strikes again 3 x 3 x 2 = 18m wasted for #Dedication

At least his fanboys are happy Dawn :proud:

But seriously it was a pointless renewal. He adds nothing to our game and instead he holds us back from actually being able to play some decent football.

Dawn · Sep 7, 2015

Razvalinho said:
The money isn't even the worst part. We're gonna be forced to watch him start for another year at least.
I would gladly pay 18 million if he just fucked off right now.

Allan_Somewhere said:
At least his fanboys are happy Dawn

But seriously it was a pointless renewal. He adds nothing to our game and instead he holds us back from actually being able to play some decent football.

Instead of renew #Dedication, we could have gotten Allan for 12m + 1m/yr salary = 18m inc. tax for 3 yrs :fp:

. But I guess it makes too much sense for :g:

Allan_Sombrero · Sep 7, 2015

Dawn said:
Instead of renew #Dedication, we could have gotten Allan for 12m + 1m/yr salary = 18m inc. tax for 3 yrs . But I guess it makes too much sense for

Way too much sense bro.

Plus the majority of RnB members would be calling for his head if he has a couple bad games in the beginning.

Lord Snow · Sep 7, 2015

Jasper said:
de Jong and Luiz Adriano contracts look the worst deals.

De Jong contract looks the a really bad deal.The Top 10 earners,all I can only think of Bacca and Lopez that are really good players and would really want in our team.

Bonaventura on 1 Million till 2019,the guy is easily top top 7/8 at the club.

joyrider · Nov 28, 2015

our sponsors

Jasper · Jan 21, 2016

full report by Deloitte - http://static.guim.co.uk/ni/1453310423410/DFML-2016.pdf

Boban1982 · Jan 21, 2016

Embarrassing. The people in charge need to be sacked or we are doomed.

bacon d'or · Jan 21, 2016

Jasper said:
full report by Deloitte - http://static.guim.co.uk/ni/1453310423410/DFML-2016.pdf

fine as we are :g:

joyrider · Jan 21, 2016

even spurs & schalke are ahead of us now :fp:

Paguma Larvata · Jan 23, 2016

joyrider said:
even spurs & schalke are ahead of us now

Look at the bright side. Everton and Newcastle are ahead of Merda.

We are fine as we are :g:

MilanMarkus · Jan 23, 2016

joyrider said:
even spurs & schalke are ahead of us now

It's quite amazing to see the quality of the PL declining in recent years, but revenue exploding at the same time.

Fact is the world's best players are not playing in England and PL teams can't compete in Europe anymore for years, but still people believe PL is the best league.

General · Jan 23, 2016

Boban1982 said:
Embarrassing. The people in charge need to be sacked or we are doomed.

Milan are not doomed

Stop being ridiculous

USC · Jan 23, 2016

Albertini · Jan 23, 2016

we make 20m euros more than roma? imagine after they make their new stadium.

and how the fuck did we loose 1/5 of our entire revenue in 1 year? :fp:

Goodfella · Jan 23, 2016

MaldiniCapitano said:
and how the fuck did we loose 1/5 of our entire revenue in 1 year?

no CL. That's minus 35-50m for broadcast revenue, ~5m less match-day revenue and also triggers less bonuses in the sponsor deals.

Luckily for us, the domestic results has little effect on the domestic revenue(most of is determined by size of the fan base/city and history). Otherwise we'd lose a lot more.

Boban1982 · Jan 23, 2016

General said:
Milan are not doomed

Stop being ridiculous

I don't think it's ridiculous. If our current ownership does not change we are doomed and our income will plummet even more.

In 2007 Milan won their last CL title. The same season Juve were relegated to Serie B. Whilst Juve's management have built their own stadium, won numerous scudettos and now have have an income of over 100 million more than ours. What have our management done? Pretty much destroyed the club. No plan and no hope.

General · Jan 23, 2016

Boban1982 said:
I don't think it's ridiculous. If our current ownership does not change we are doomed and our income will plummet even more.

In 2007 Milan won their last CL title. The same season Juve were relegated to Serie B. Whilst Juve's management have built their own stadium, won numerous scudettos and now have have an income of over 100 million more than ours. What have our management done? Pretty much destroyed the club. No plan and no hope.

doomed..... like, close up shop? game over? End of AC Milan name?

Come on.

Boban1982 · Jan 23, 2016

General said:
doomed..... like, close up shop? game over? End of AC Milan name?

Come on.

The Milan we knew and loved is doomed under current ownership. We are mediocre from top to bottom and that won't change anytime soon. Gone are the days of European or even domestic glory.

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