Milan have recorded a loss of €91.3 million – the highest in the club’s history – but CEO Adriano Galliani explained it’s ‘only’ €46.6m really and stated the sale is not certain but if it happens it’ll be for the good of Milan.
The financial statement for 2014 was approved by the board of directors at the annual shareholders meeting. This year’s deficit is €91.3m which is the highest the club ever recorded in all of its 115 years.
An official communication on Milan’s website reads: The board of directors meeting of A.C. Milan S.p.A, Milan Entertainment S.r.l. and Milan Real Estate S.p.A. have approved the financial statement which came to an end on December 31st 2014. The overall worth of the production of Gruppo Milan amounts to 233,6 million euro.
“The result of the financial statement is a loss of 91.3 million euro. With similar conditions to previous financial statements, the resulting losses would have been 46.4 million euro, most of which came from the lack of Champions League football for the 2014/15 season.
“It is worth mentioning that participation in the Champions League for the 2013/14 season generated €35m. The fact that Gruppo Milan are no longer integrated into the fiscal financial statements of Fininvest and the wages still owed to the technical staff sacked in 2014 amount to the rest of the loss.” The amount paid to the ‘technical staff’ that was sacked, i.e. Seedorf and his men is said to be €7.5m.
Milan’s holding company Fininvest has already covered the losses on the 20th of March, 2015.
Vice President Galliani was asked questions from shareholders, one of them being Giuseppe Gatti, who is known for his ‘uncomfortable questions’. “One must know when it’s time to give up,” Gatti said. “Confirming Allegri was a mistake and then we went to Brazil to take Seedorf, who had never coached before, and after six months we sent him away. The players are traded and you don’t win anymore.
“In the last few years we’ve been getting the results of Giuseppe Farina’s Milan. But that Milan had champions like Franco Baresi, Mauro Tassotti, Paolo Maldini and Filippo Galli while it attack there was Pietro Paolo Virdis. On which champions are you going to rebuild this squad?”
Galliani answered to the claims of Gatti saying that “It’s clear and evident that in a sports club, when the results don’t come then it’s all wrong. I should mention that the parallels between Farina’s Milan and Berlusconi’s Milan are that since 1999 we’ve competed in the UCL 13 times and that we were playing in the Champions League until last year. Allegri managed to take the team to first place, second place and then third place in the league and on every occasion we qualified for the knock-out stages of the competition.
Those are good results. Last year in the second half of the season we managed to pick up 35 points, which is also good and if we had earned those in the first round then we’d have been in the Champions League. This year things are not going well and the position in the table doesn’t give us joy but I think any comparisons with Farina’s Milan is unkind considering the 28 trophies we have won.
“History will always remember that. It’s true that we must look forward but the story remains the same. The will of the President is clear and Fininvest fully covers all of our losses. No company has done more for Milan than Fininvest. Hopefully things will improve and we’ll try to find solutions in the summer.”
Shareholder Giuseppe Lascala also voiced concerns for the future of Milan and like the Curva Sud, asked for clarity on behalf of the club. “What do you plan to do for the future,” Lascala asked Galliani to clarify – “not so much to the members but to the world of Milan. Today, more than approving a budget which is the worst in our history, we also have a problem of perspective.
“Is there a program to rebuild the team? The report of the budget doesn’t speak of the stadium. There is a communication split up and then there’s the issue of the sale of the company’s shares. On what basis will the sale be made? There were more season-ticket holders when we were playing against Cavese in Serie B than there are today. There is no clarity on what will happen. Nothing is explained in these assemblies.”
Galliani also answered to the questions of Lascala, stating that “I understand what you mean. Our owners, Fininvest, have invested an enormous amount of money in the club taking the club to incredible results until two years ago. When Milan-Cavese was played, there was no direct TV so if you wanted to watch the games you had to go to the stadium.
“We acquired Milan on February 20th, 1986 and Berlusconi, with a herculean effort, has obtained the results that he has. I can’t say anything about the sale but I can say that if ever the club were sold, which is not at all certain, it will only be made for the good of Milan. Right now things don’t make anyone happy.”
The board of directors was appointed during the shareholders meeting and as reported on Milan’s website, it consists of Barbara Berlusconi, Paolo Berlusconi, Leonardo Brivio, Pasquale Cannatelli, Alfonso Cefaliello, Leandro Cantamessa, Giancarlo Foscale, Adriano Galliani, Antonio Marchesi.