Paolo Scaroni has spoken at today’s shareholders meeting about the Rossoneri’s condition with UEFA, confirming it’s very possible that Milan will not be getting money from the Europa League this season.
Milan had a shareholders meeting today to approve the budget for the 2017/18 campaign in which a record-high €126 million loss was recorded.
Chairman Paolo Scaroni spoke during the meeting about different topics.
“The club has lost more than third of its capital,” he said. “However, taking into account that in the months of August and September payments of €170.5m were made, it is proposed to write off the loss for the year as follows: €39.5m by using reserves and the rest using the summer installments. The club has requested and acquired from the shareholder Rossoneri Sport to use a maximum of €96m future capital increase carried out by the majority shareholder. All in order to cover the loss.
“UEFA? We’re waiting for the judging chamber. UEFA can and will implement the suspension of prize money. The judges who barred us from the Europa League have, pending the sentence, have temporarily suspended the revenue that would come from the Europa League. We cannot put tonight’s revenue on the balance sheet, because we’re still awaiting the UEFA ruling.
“It is money under warranty, around €2.5m has been withheld. Provisions? We’ve set aside €18m, which is a prudent allocation. There are two areas of risk. One is UEFA. As you know our exclusion from the Europa League was overturned, but it’s not over. Our case has been sent back to the justice chamber, which must give us a penalty commensurate with our transgressions. The decision should arrive by the end of the year. We definitely won’t be cleared, because it’s difficult to make the same court which found you guilty chance its mind. We have some minor allocations.
“Sponsorships? I have no big news to tell you. There are no large incoming sponsors or outgoing ones. This is a subject that’s fundamental for the growth of Milan. There are two mountains to climb. On the one hand sponsorship and merchandising, and on the other sporting results. If the latter doesn’t happen, then sponsors won’t arrive. We’re generating what we did in 2003, 15 years ago. So revenue is vital, and I’m focusing all my attention on it.
“Stadium? Certainly having a modern and efficient stadium is essential for the revenues that are missing at Milan. We’ve taken this problem as one of our priorities. There are many hypotheses being considered, including sharing San Siro with Inter. The degrees of freedom are decreasing, it’s a priority. I would like, by the end of the year, to have made a final decision.
“Milan China? We consider China to be a crucial market. We don’t want to throw the baby out with the bath water. What we’ve done in China so far risks giving us a bad reputation, so we’ve decided to be present in China. We’ve moved our offices from Beijing to Shanghai and started again, to show a clean break with the past. The Chinese market is crucial for us. So China, yes, but in a different way.”