Milan have announced losses of €195m for the past financial year, explaining Covid-19 had a huge impact.
The 2019/20 season was historic due to the Coronavirus outbreak around the world as football stopped for months.
Nearly everyone in the world have been impacted financially by Covid-19 and the Red and Black club is no different, as confirmed by the official statement form the Diavolo on Friday:
“The Milan Board of Directors today approved the draft financial statements for the year which ended on June 30, 2020 and which will be submitted at the Shareholders’ Meeting, scheduled for the next October 28.
“In a season heavily marked by the effects of the global pandemic, the Club was not immune from negative impacts on its financial performances, having already been heavily penalized by the inherited situation, with a final result for the year that recorded a net loss of approximately €195m. Excluding the impact of exceptional exogenous circumstances, the results of the approved year can be considered significantly improved and in line with the expectations of the Club, which is committed to comply with the Financial Fair Play. A club the size of Milan takes time to transform itself, but the Club and the owners are united in trust for the positive path that has been undertaken.
“It is evident that the strong impact on the financial statements deriving from the state of the health emergency is due to the lack of revenues relating to the closing of the stadiums, with a consequent reduction in commercial activities, and to lower revenues from the detail sector (Museum, Store, Casa Milan, etc…)
“Furthermore, the lower revenues recorded due to a considerably reduced number of matches (ten 2019/20 Serie A games were played in July and August 2020) certainly weighted on the accounting data, leading to the postponement of part of the income from TV rights to the 2020/21 season.
“Finally, it is important to note that the Club, for the past season, was banned from participating in the Europa League, with a negative impact that will be recovered in the next financial year.
“The constant support of Elliott, which guarantees the financial stability of Milan, has however allowed important investments, the effects of which will begin to be visible in the near future. At the same time, an effective cost rationalization was launched, also through a significant reduction in the amount of players’ salaries and top management salaries.
“Additional background notes:
- “The entire global economy is suffering and football is not immune – Covid-19 has impacted almost all the revenue streams of football clubs: TV rights (especially for big clubs), sponsorships, events and retail sales.
- “The European Club Association (ECA) has estimated that the European football industry will lose around €4 billion due to Covid-19 in the next 2 seasons, with 90% of this impact weighing on clubs.
- “The CEO of Lega Serie A, Luigi De Siervo, has estimated the damages for Italian football at over €500m.
- “Great part of these losses are felt by the biggest clubs, which, under normal conditions, have the highest revenues in stadium, the most profitable TV rights sales and the widest range of commercial activities (retail sales, football schools, museums, etc…)”