AC Milan's Financial Situation Thread

[Raz]

 

[Jasper]

New Blog: Bayern Munich - The Model - http://swissramble.blogspot.ch/2015/02/bayern-munich-model.html

Umberto Gandini favorited

 

[Senatore_M84]

Grant WahlVerified account
‏@GrantWahl
Sky Sports & BT retain domestic Premier League rights for ?5.136 billion ($7.84B) from 2016-19, up 70% over previous deal.

Wait, I thought the forum told me Serie A was fine w/ TV deals.

It didn't matter no1 cares globally, and it gets worse year after year.

 

[ladro]

It is fine. EPL is just on another planet is all....

 

[Jasper]

Wait, I thought the forum told me Serie A was fine w/ TV deals.

It didn't matter no1 cares globally, and it gets worse year after year.

You told forum Serie A wasn't second. And forum told you it was.

 

[NIRossoneri]

Wait, I thought the forum told me Serie A was fine w/ TV deals.

It didn't matter no1 cares globally, and it gets worse year after year.

The entire EPL will be the global top 20 in terms of tv revenue with this deal, lowest place team will earn around ?99m just in TV money

 

[Sod-Lod]

 

[Australiano1980]

have to increase de sciglio's and bonaventura's numbers

 

[necromancer]

For once, the wage list looks okay except for the two white elephants topping it.

De Sciglio deserves no hike at the moment.

 

[Patri]

For once, the wage list looks okay except for the two white elephants topping it.

De Sciglio deserves no hike at the moment.

I'd also consider the two black elephants getting 2.5 million euros a season to be considerably overpaid.

When you add the following players to that wage list, the number of players on it alone makes the list quite not okay.

Agazzi
Bocchetti
Paletta
Albertazzi
Antonelli
Suso
Mastour
Destro


I do agree that De Sciglio does not deserve a raise for the performances he has put in this season. Also, I am pretty sure Menez might be thinking about asking for a raise.

 

[SHEVA-7]

http://www.repubblica.it/sport/calc...iliardo_dalla_thailandia-107280242/?ref=fblcm
can u please translate this ? it says 1b euro for Milan from Thailand.

 

[Sod-Lod]

http://www.repubblica.it/sport/calc...iliardo_dalla_thailandia-107280242/?ref=fblcm
can u please translate this ? it says 1b euro for Milan from Thailand.

1, 2 & 3.

 

[SHEVA-7]

1, 2 & 3.

Ty

 

[Sod-Lod]

Ty

Welcome

 

[Australiano1980]

well..

 

[USC]

Re: conditioning. Would be curious to know if a higher number of players on our squad smoke vs. other squads. Personally only know that Abbiati smokes, but am completely ignorant to the rest of the squad.

 

[Mexes5]

wouldn't make a blind bit of difference if abbiati smoked

Seen a picture of Pazzini and Mexes smoking, not a huge deal to me tbh.

 

[Hitman]

doesn't make a difference at all. Zidane also smoked, and was even pictured during the 98 world cup. Players should have the freedom to do what they want in their lives outside football. It sucks that the media highlight every detail of the lives of certain players like Balotelli. Anyway this is way off-topic.


It is interesting that Gandini always favorites what the fans are saying. This means that someone inside at Milan definitely has an ear with the fans to what they want, which also means the management are completely aware of what us fans want and they are purposely not giving it to us for one reason or another. Gandini I just feel is another puppet a la Braida, all he does is replies and retweets on twitter.

I don't know what to make out of this rumor that Milan could've been sold to the Thai group, but I definitely share the sentiments that it would be ideal to be bought out by an Arab or Russian.

Tottenham has been bought by QIA by the way. It's not official yet, but it's pretty much official at QIA. People up there are talking as if it's a done deal. They said they don't know when will they announce the deal though. This is what I've heard from someone with a high position in QIA. And for those who don't know QIA, they're the same owners of PSG. They've always wanted a club in the EPL and now they've got it. I wish they would've considered Milan but considering the new TV rights deal in England, I don't think they made a mistake. Tottenham is going to be the next cash club in Europe and in my opinion, from all the teams that are currently cash clubs, Tottenham is the most ready before being bought out. They're definitely in better positions that Chelsea, City, Malaga, Valencia and PSG were before they were bought. I fear Tottenham could become a giant. That sucks really.

 

[Australiano1980]

this is what im talking about it... the team cant keep up.. the physical conditions is terrible.. empoli is starting to dominate the game coz milan can play equals anymore

our only chance now is if they commited a mistake

 

[General]

Im positive someone has brought this up before... But looking at Meelan's revenues over the past 20ish years when compared to the other top 10-15 clubs in Europe and it appears that B never figured out how to grow the company past the mid to low 200 millions...but there's some questions here...

Read this first and note the year over year levels of each top 10 club

http://en.m.wikipedia.org/wiki/Deloitte_Football_Money_League


Now, most will just say... It's Italy and the TV deals are nowhere near the EPL or La Liga's deals for their top teams...

But there's a little more to this.

First of all, look at the jumps in revenue year over year and notice when Milan's jumped dramatically then stayed flat.

Look at Juve's and notice the jumps.

Total 'throw random ideas against the wall post'

I think Juve, unless they win the CL, have peaked.

It seems like success in the league, going to the CL and having a new stadium generates about 270m per year in revenues. Going all the way in Europe might push Juve to about 300m.. Agreed?

I guess there are 2 take aways.

1. I don't thik new investors can be an ongoing new revenue stream..
2. Even with a new stadium, domestic and European success, the limit seems to be near 300m (Juve model) vs 400-500 with the United, madrid, Barcas and PSGs of the world.


With that said, PSG seems to break the mold of how quickly they experienced the jump

They went from 220m to around 474m in revenues in just one year.
Is this counting cash injection from their ownership?


I guess the question is... How to create a revenue stream that's new and not just tied to TV, ticket sales, merchandise and tournament prize money while not selling off players..

Surely they don't think casa Milan is going to raise the tide to any significant levels

How does Milan break the serie a revenue ceiling after the bag of tricks Juve has already tried?

 

[jawz10]

Two words: Aye-Shaaa

Asia bitches.

 

[Jasper]

Two words: Aye-Shaaa

Asia bitches.

 

[bacon d'or]

With that said, PSG seems to break the mold of how quickly they experienced the jump

They went from 220m to around 474m in revenues in just one year.
Is this counting cash injection from their ownership?

qatar sponsorships smell fishy

QTA sponsorship alone is worth up to 200m per year according to report

 

[General]

^ holy fucking shit

so..a good 80% of Milan's total revenues is a yearly gift from QTA to PSG..

 

[USC]

Time for a shell company!

 

[Sorriso Sempre]

Im positive someone has brought this up before... But looking at Meelan's revenues over the past 20ish years when compared to the other top 10-15 clubs in Europe and it appears that B never figured out how to grow the company past the mid to low 200 millions...but there's some questions here...

was that or job??

Read this first and note the year over year levels of each top 10 club

http://en.m.wikipedia.org/wiki/Deloitte_Football_Money_League


Now, most will just say... It's Italy and the TV deals are nowhere near the EPL or La Liga's deals for their top teams...

But there's a little more to this.

First of all, look at the jumps in revenue year over year and notice when Milan's jumped dramatically then stayed flat.

Look at Juve's and notice the jumps.

Total 'throw random ideas against the wall post'

I think Juve, unless they win the CL, have peaked.

It seems like success in the league, going to the CL and having a new stadium generates about 270m per year in revenues. Going all the way in Europe might push Juve to about 300m.. Agreed?

I guess there are 2 take aways.

1. I don't thik new investors can be an ongoing new revenue stream..
2. Even with a new stadium, domestic and European success, the limit seems to be near 300m (Juve model) vs 400-500 with the United, madrid, Barcas and PSGs of the world.


With that said, PSG seems to break the mold of how quickly they experienced the jump

They went from 220m to around 474m in revenues in just one year.
Is this counting cash injection from their ownership?


I guess the question is... How to create a revenue stream that's new and not just tied to TV, ticket sales, merchandise and tournament prize money while not selling off players..

Surely they don't think casa Milan is going to raise the tide to any significant levels

How does Milan break the serie a revenue ceiling after the bag of tricks Juve has already tried?

the answer is easy.you have to follow one of the two models.either that of porto fc(buy low sell high) or bayern munchen model.

the porto model is easy to understand so i dont explain more.if you want just ask.

now on the bayern model.why i choose bayern over man utd or spanish supergiants model??cause i think from business perspective is the better one.

rm-barca and man utd exploit factors that are as unique as having a megarich sugar daddy like psg-$hity.for example rm have the best brand in the world due to the fact that they are the most historic team and their phenomenal success back in 1950's.i dont think any other team is going to win 5/5 in the next 50 years.also rm-barca take full advantage of the unique tv deal and gain almost 200m/year from that.on the other hand man utd take full advantage of the extreme exposure of english football(premier league in particular) due to known reasons..(commonwealth, english language, etc)

bayern have build their brand(and their income by extension) step by step.they never played the ultra-attacking/eye catching football of rm-barca.for the most part of the 90's-00's they played boring(succesful though ) football.they also almost got destroyed(financially ) due to kirch corp bankruptcy before 2002 fifa wc as bvb did.and they decided to secure their investment and build a healthier business model.if you look at how their revenue is distributed they make almost 80-90/year from match day, 300 from commercial rights/sponsorships and the rest from tv deal.

the big question ( and i m not the appropriate to answer nor you but is the right man to answer, or he should be..) is how did they manage to increase their commercial revenue so much.thats the key to their model.and the really exciting thing about that is that they managed to do so despite their league being 4th in the row in terms of appeal, history etc.


now in our case.assuming we build a stadium of 50-60k we can have match day revenue between 50-100m/year.last year we had 39k average attd compared to juve's 35k. in good years we had over 60k avg and back in 1990 we had over 73k which is on par with the elite of europe.(thats why i believe we should look for a 60k stadium more than a 48k).unless something changes tv deals are going to be better than bayerns for the next 5 years.so we can say we can compete with them in those two sectors.

but in the third sector we have a 200m gap from them... and that is my biggest problem(yes even before his senatore mentality) with
he failed to exploit our brand.http://www2.deloitte.com/content/da...te-uk-deloitte-football-money-league-2006.pdf

barca us and others made 50-60m/ year from commercial rights back in 2005-6.yet they managed increase a lot and we are still at 90-100 maximum.and in 2003-2007 we had the most successful squad , always in the sf etc.we also brought r80 and becks the two most marketable players of the last 10 years.yet failed to compete with the rest in a sector who he is the only one to blame.(and dont say to me that we werent competitive enough, cause RM for 7 years failed to get past last 16 in CL and got only 1 championship yet they increased their revenues from 270 in 06 to 550 in 14)

so to sum up i blame for our current stat 80% and 20% the restb: and coaches players etc). for example is to blame for not building us a stadium but you all see that commercial revenue is that really hurt us and distinguish us from the rest.

with a proper manager and new fans due to opening in asian market we could have top 3 commercial revenuein the world in the next 5-7 years(esp if we have a wc team and renegotiate sponsorships withe better terms)

 

[General]

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

But are you tellin me there's a model where a Serie a team can hit the 4-500m a year revenue mark? Looks like your saying yes by building 'commercial rights' and match day sales?

I'll have to really think about that...

USC? Italian ceiling??

 

[Sorriso Sempre]

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

But are you tellin me there's a model where a Serie a team can hit the 4-500m a year revenue mark? Looks like your saying yes by building 'commercial rights' and match day sales?

I'll have to really think about that...

USC? Italian ceiling??

if a spanish club can then a french , italian, german, english can too.its free market.

if you break it down to the 3 sectors(tv, commercial, match day) you can see with more detail.

since the tv deal depends more on the league appeal and less on the club itself (unless it returns to the pre 2006 era when milan arranged its tv deals individually ) then you have to do something about the stadium, and your commercial rights.

i dont say its easy or it can be done in one year , but with the proper moves on and off the field it can.one thing is for sure though.with current strategy the spiral goes down and we ll become more like inter than bayern.

 

[USC]

Some good recent replies. I'm not so sure that there is a ceiling or plateau that Milan would reach, but I recognize that there are some financial limitations, which are primarily related to TV parity in Italy compared to Spain. Don't know what the global TV deals are for Italy, but I believe that it sells its rights per country, so that's an opportunity.

My biggest concern with how Milan has been run is the marketing. Football has exploded in popularity over the past decade, and while teams like Madrid, United, Barcelona, and most of the London teams have spent a fortune on attracting and retaining fans, Milan's marketing and brand development has been very, very poor. Sure, not winning has obviously affected it, but that doesn't preclude a good strategy. I look at Madrid as the perfect example of what brand extensions can do for the club's commercial success, and it's just incredibly impressive. Shit, the club was going to brand a fucking island with Real Madrid, which obviously fell through.

The good thing, though, is that China is right now big on discovery AND importing Italian and French culture, so if the club is acquired by the Chinese and branded as a slice of Italy and la dolce vita, there is massive potential. Would have preferred to wait on the shirt sponsorship as it could possibly be a shell sponsorship for lots of extra money, but alas, no dice.

If Milan hires strong marketers, gets results, and has stars, I see massive economic potential.

One of the reasons why I'm also so keen on the Casa Milan stadium idea is because it creates a cathedral to Milan, which will generate income. I'd also want to open a massive Milan branded pub as a way to hedge against the smaller venue.

 

[Balo45]

I for one do not think that serie a will hold milan back too much, the opportunity for expansion is definitely there. Of course I wouldn't expect milan to reach the tier of man united/barca/madrid, however, I do think milan over a few years can reach that second bracket of financially successful clubs. You could use Psg as an example. They are generating massive amounts of revenue despite not being a prestigious club or playing in an attractive league. If milan plays its cards right, and I think USC is spot on with utilizing the Chinese connection, milan could certainly hit the levels it once did at least.

For this I wouldn't quite say milans ceiling is where juve currently is. It's gonna take creative marketing and I wouldn't neccesarily EXPECT milan to go above that, but it's possible nonetheless.