AC Milan's Financial Situation Thread

Pharaoh · Jan 12, 2014

Someone explain this tax shield thing to me?

tuxedo · Jan 12, 2014

Pharaoh said:
Someone explain this tax shield thing to me?

It's not a tax shield. The interest you pay on it reduces income which reduces taxes. But if your tax rate is 30% for example, paying 1000 interest only reduces your taxes 300. Simplistically if you have a loss (which may be caused by interest payments on excessive debt), you can carry the loss forward to a year when you have a profit and apply the loss against the profit..

Nasha · Jan 12, 2014

Pharaoh said:
Someone explain this tax shield thing to me?

tuxedo said:
It's not a tax shield. The interest you pay on it reduces income which reduces taxes. But if your tax rate is 30% for example, paying 1000 interest only reduces your taxes 300. Simplistically if you have a loss (which may be caused by interest payments on excessive debt), you can carry the loss forward to a year when you have a profit and apply the loss against the profit..

Precisely as tuxedo explained. In simple terms, paying interest on debt reduces the tax payable to the government. For better understanding, give this a read...

http://www.wisegeek.com/what-is-an-interest-tax-shield.htm

Patri · Jan 17, 2014

So we've owed Finivest this quarter of a billion since say, 2007? Since then we've been roughly breaking even (by selling stars at times) every year, right?

Sod-Lod · Jan 23, 2014

Sod-Lod · Jan 23, 2014

romlakers · Jan 23, 2014

The big problem is the stadium. Our revenues from it are fucking ridiculous. We're doing pretty well on broadcasting and sponsors, but we need to build and to own our own stadium to be at 300 millions.

Jasper · Jan 24, 2014

Goodfella · Jan 25, 2014

romlakers said:
The big problem is the stadium. Our revenues from it are fucking ridiculous. We're doing pretty well on broadcasting and sponsors, but we need to build and to own our own stadium to be at 300 millions.

It's not just that easy though. The revenue from San Siro games could match that of Old Trafford or Stamford Bridge if there were the same demand for tickets. But there isn't. Italian match revenues won't have a chance to be on level with EPL match revenues as long as Italy, Serie A and the fan culture are in their current states.

Jasper · Jan 26, 2014

Nothing direct on Milan finances but a look at transfer fees in general in Premier League. Explains how BPL TV deal creates/inflates the market - http://tomkinstimes.com/2014/01/transfer-records-and-why-they-mata/

(we are about to enter big selling market with new TV deal coming in England)

Jasper · Jan 29, 2014

One more about Deloitte Money League

http://www.economist.com/news/econo...tball-wealth?fsrc=scn/tw/te/pe/footballwealth

Patri · Feb 6, 2014

Being that it is very clear that we overpay some of our players and that we have a bloated squad, I'd be interested in the cumulative squa wages to cumulative Serie A points ratio for the following clubs for the last five seasons:

AC Milan
Juventus
Inter Milan
Napoli
Roma
Udinese
Fiorentina

Does anyone know of any resource that can provide me with such information? Even annual wages for these last 5 season alone will do. I can find the cumulative points and calculate the ratio. I'll post it here if anyone is interested. I'm just curious, really.

theduck7 · Feb 9, 2014

Can anyone please explain what's going on a Cagliari, have they sold to Qatar owners? Just interested to see if this would bring psg buying power to serie a and some much needed attention to the league in general which would hopefully have a knock-on effect

msatariano · Feb 23, 2014

How in the world are we paying for a new stadium? Unless these past two seasons of frugality have lined our pockets more than we can imagine... Look at Arsenal and what hey had to go through to get their stadium paid off, what are we going to be looking at? 20 years of mediocrity?

msatariano · Feb 23, 2014

So after our $120 mil (assumed) salaries where is the other $100 mil going?

Goodfella · Feb 23, 2014

msatariano said:
So after our $120 mil (assumed) salaries where is the other $100 mil going?

$120m? We wish.. It's likely to be more than 150m...in euro.

USC · Feb 23, 2014

msatariano said:
How in the world are we paying for a new stadium? Unless these past two seasons of frugality have lined our pockets more than we can imagine... Look at Arsenal and what hey had to go through to get their stadium paid off, what are we going to be looking at? 20 years of mediocrity?

There are these wonderful things called bank loans and naming rights.

Ashish · Feb 24, 2014

our revenue is flat :lol:

we still make what we made in 2003

even though out commercial revenue is up, new stadium wont inject any money since nobody comes to stadium but its a long term investment. Television rights are nothing compared to what epl is going to get next

Holy cow its going to get ugly unless we get smarter

our wage bill
http://www.rossoneriblog.com/2013/09/09/ac-milan-20132014-player-salaries-chart/

our net transfer in window is less that standard dealings( i guess)

Sod-Lod · Mar 8, 2014

Milan's revenue, according to GdS:-

Serie A 2012-2013: Revenue, costs, capital gain/loss, debts and more of the 20 Serie A clubs:-

USC · Mar 8, 2014

This club is run hilariously bad. This chart should be glued to the faces of everyone who says Milan doesn't spend money. It's our moron management who cannot seem to spend efficiently or properly.

Albertini · Mar 8, 2014

msatariano said:
How in the world are we paying for a new stadium? Unless these past two seasons of frugality have lined our pockets more than we can imagine... Look at Arsenal and what hey had to go through to get their stadium paid off, what are we going to be looking at? 20 years of mediocrity?

we make more money in bradcasting than chelsea or man utd. we have the tenth highest turnover in the world, we have all of the facilities and coaching in place to develop youngsters and sell them off for astronomical prices if we wanted to. The management are a joke, we should be top ten team in the world we are not even top ten in italy.

seeing 35k fans in the san ciro is fucking embarassing and. the executive boxes at the emirates probably make as much money as all those seats. we have 30 boxes and they're probably as dilapidated as the rest of the stadium.

Milanista2020 · Mar 8, 2014

La Gazzetta dello Sport found only six Serie A clubs ran at a profit last year, while Inter lost €82.7m.

The newspaper published the results of its investigation today into the finances of clubs in the 2012-13 campaign.

They found only six sides avoided a deficit, while there are still huge debts all around the League.

Udinese are the best run club in Italy, making a profit of €32.3m in 2012-13, followed by Napoli with €8.1m.

The only other clubs to run at a profit were Chievo (€1.5m), Pescara (€1.3m before their relegation), Fiorentina (€1.2m) and Catania (€0.1m).

Inter hold the record for the worst accounts, as they ran at a loss of €82.7m in 2012-13. It’s still an improvement on the €89.8m losses from the previous season.

Juventus have the highest revenue, mainly thanks to owning their own stadium, with €274.8m, but also the second highest expenditure at €286.8m.

It means the Bianconeri still ran at a loss of €15.9m last season.

Of the other top clubs, Milan ran at a loss of €6.9m and had the most expenses at €324m, Lazio lost €5.9m and Roma €40.1m.

In terms of outstanding debts, Inter lead the way with €293m, followed by Juventus on €227.1m and Milan €221.6m.

The club with the lowest debt is Fiorentina on just €5.1m.

http://www.football-italia.net/46160/only-six-serie-clubs-profit

Sod-Lod · Mar 8, 2014

Milanista2020 said:
La Gazzetta dello Sport found only six Serie A clubs ran at a profit last year, while Inter lost €82.7m.

The newspaper published the results of its investigation today into the finances of clubs in the 2012-13 campaign.

They found only six sides avoided a deficit, while there are still huge debts all around the League.

Udinese are the best run club in Italy, making a profit of €32.3m in 2012-13, followed by Napoli with €8.1m.

The only other clubs to run at a profit were Chievo (€1.5m), Pescara (€1.3m before their relegation), Fiorentina (€1.2m) and Catania (€0.1m).

Inter hold the record for the worst accounts, as they ran at a loss of €82.7m in 2012-13. It’s still an improvement on the €89.8m losses from the previous season.

Juventus have the highest revenue, mainly thanks to owning their own stadium, with €274.8m, but also the second highest expenditure at €286.8m.

It means the Bianconeri still ran at a loss of €15.9m last season.

Of the other top clubs, Milan ran at a loss of €6.9m and had the most expenses at €324m, Lazio lost €5.9m and Roma €40.1m.

In terms of outstanding debts, Inter lead the way with €293m, followed by Juventus on €227.1m and Milan €221.6m.

The club with the lowest debt is Fiorentina on just €5.1m.

http://www.football-italia.net/46160/only-six-serie-clubs-profit

That shows how pathetic the teams in SA can be with their miss management run.

Neverless, Udi IS THE ONLY club who has a better record balance book based on the lack of effective sponsorships an the volume of the club nationally and internationally.

When their Stadium will get ready, I'm sure they will boost their market value and prepare a solid team that can be an example to follow in ITALY.

B&G has no excuses here to bragged our heads with, they have the [Wide Market + Super Sponsorships + Financial Resources] to create at least a stable and solid team, but instead, we are damned with careless and selfy behave of B and termoandes disrespect from G and his co.

ItaliaCalcio10 · Mar 17, 2014

Pretty scary stuff when looking at the finances of these clubs.
As far as I'm concerned, these businesses should not be operating with a debt burden. The operating leverage of the businesses (especially big clubs), makes it inherently a bad idea.

Juventus, AC Milan, Roma, etc. all have large figures when it comes to fixed costs. While it may seem that salaries are variable, in order to meet their reputations, it really is impossible. Operating leverage + financial leverage + slim margins = a bad idea.

Milan need to simply sell, and use proceeds (~$1B) to pay off their debt, improve the squad, and invest in a new stadium/ the business. Lucky for Berlusconi despite the crappy financial situation, sports franchises are extremely valuable at this point / as are sports broadcasting rights (they are the crown jewel of content). Its an easy sell IMO.

Ashish · Mar 17, 2014

lol berlus company has rebounded nicely after couple of years and his asset valuation is around 9billion, its just he has bigger things to worry about

rocknrolla1v1 · Mar 17, 2014

Ashish said:
lol berlus company has rebounded nicely after couple of years and his asset valuation is around 9billion, its just he has bigger things to worry about

Proof please

ItaliaCalcio10 · Mar 18, 2014

rocknrolla1v1 said:
Proof please

He's actually correct.
Source: My Bloomberg

Larger Pic:
http://postimg.org/image/vii9owaqd/full/

Its probably closer to $9.5B since the valuation used for Milan is from a 2011 Finivest report. Sports valuations have been skyrocketing over the last 5 years. If the Forbes valuation of ~$900-$1B is used, it pushes his portfolio of assets up by about 1/2 a billion.

ladro · Mar 18, 2014

yes mediaset is doing good these days. proud oscar winners

rocknrolla1v1 · Mar 18, 2014

ItaliaCalcio10 said:
He's actually correct.
Source: My Bloomberg

Larger Pic:
http://postimg.org/image/vii9owaqd/full/

Its probably closer to $9.5B since the valuation used for Milan is from a 2011 Finivest report. Sports valuations have been skyrocketing over the last 5 years. If the Forbes valuation of ~$900-$1B is used, it pushes his portfolio of assets up by about 1/2 a billion.

Than why the fuck hasn't he invested buying players? WTF if the logic

ACMilanMaldini3 · Mar 18, 2014

rocknrolla1v1 said:
Than why the fuck hasn't he invested buying players? WTF if the logic

Because were suppose to be an example of fair play, get it (He doesn't have to invest) :lol:

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