UEFA has announced today that 8 clubs, including Milan, have gone into settlement agreements with them; the Rossoneri: “The decision of UEFA testifies to the validity of the strategic vision that guides the work of ours.”
Milan have been working in recent years to improve the sporting and commercial results of the club, all while trying to stay within the parameters of UEFA’s FFP.
Today, UEFA announced that it has reached an agreement with 8 clubs who are in breach of the Financial Fair Play. One of the 8 clubs is Milan, and they are there alongside Inter and Juventus.
The Club Financial Control Body (CFCB) First Chamber, chaired by Sunil Gulati, announced today a series of decisions involving clubs that participated in the 2021/22 UEFA club competitions.
The CFCB First Chamber found that AC Milan (ITA), AS Monaco (FRA), AS Roma (ITA), Beşiktaş JK (TUR), FC Internazionale Milano (ITA), Juventus (ITA), Olympique de Marseille (FRA) and Paris Saint-Germain (FRA) did not comply with the break-even requirement.
The analysis covered the financial years 2018, 2019, 2020, 2021 and 2022. Financial years 2020 and 2021 were subject to the Covid emergency measures aimed at neutralising the adverse impact of the pandemic. Under these measures, financial years 2020 and 2021 were assessed as one single period and clubs were allowed specific covid-19 adjustments, and to average the combined deficit of 2020 and 2021. Further information on the emergency measures can be found here.
These eight clubs agreed to financial contributions of €172 million. These amounts will be withheld from any revenues these clubs earn from participating in UEFA club competitions or paid directly. Of this amount, €26 million (15%) shall be paid in full while the remaining balance of €146 million (85%) is conditional depending on these clubs’ compliance with the targets stated in the respective settlement agreement.
The details are as follows:
|Club||Total amount||Unconditional amount|
|AS Monaco (FRA)||€2 million||€0.3 million|
|Olympique de Marseille (FRA)||€2 million||€0.3 million|
|Beşiktaş JK (TUR)||€4 million||€0.6 million|
|AC Milan (ITA)||€15 million||€2.0 million|
|Juventus (ITA)||€23 million||€3.5 million|
|FC Internazionale Milano (ITA)||€26 million||€4.0 million|
|AS Roma (ITA)||€35 million||€5.0 million|
|Paris Saint-Germain (FRA)||€65 million||€10.0 million|
The settlement agreement framework is identical for all clubs. Settlement agreements cover either a 3-year or a 4-year period. Their aim is to accompany clubs through the transitional period between the “old” Club licensing and Financial Fair Play Regulations – Edition 2018 and the newly approved Club Licensing and Financial Sustainability Regulations – Edition 2022 (CL&FS) that will be implemented in a staged approach as from financial year 2023. The clubs’ objective is therefore to fully comply with the stability requirements (i.e. the football earnings rule), as defined in the UEFA Club Licensing and Financial Sustainability Regulations – Edition 2022 at the end of the Settlement agreement.
Under the 3-year settlement agreement, clubs agree to comply with the football earning rule during the 2025/26 season. They undertake to reach intermediate annual targets, and to the application of conditional financial and sporting measures should these targets not be met.
The 4-year settlement agreement differs in that it provides one additional season to comply with the football earnings rule but includes unconditional sporting restrictions on the registration of new players applicable as from 2022/23 season. AS Roma and FC Internazionale Milano opted for a 4-year settlement agreement while all other clubs opted for a 3-year period. Further details on the settlement agreements can be found here and here.
Therefore, Milan will pay €2 million of fine and €13 million if they fail to meet the parameters of the settlement agreement. The Club reacted to UEFA’s decision through a press statement: “The decision of UEFA’s Club Financial Control Body testifies to the validity of the strategic vision that guides the work of our Club.
“We will continue with confidence in the virtuous path towards financial sustainability, in line with the indications of the FFP, committing ourselves with discipline and constancy to achieve the perfect balance and synergy between sporting and financial results: a goal that the whole world of football should continue to pursue.”