Milan have finished the 2018/19 financial season over €80 million in red, but there will be no capital increase from the shareholders.
Paolo Scaroni claims that there are two mountains to climb at the same time in order for Milan to return to return to the top of football: the first concerns winning on the pitch, and the second concerns increasing revenues and making more money in various ways.
While Paolo Maldini, Zvonimir Boban, Frederic Massara and coach Marco Giampaolo are in charge of the first mountain, Ivan Gazidis and his team of directors have been appointed to make sure that the accounts of the club are in check.
Today (Thursday) there was a Board of Directors meeting at Casa Milan. The reason for the meeting, which was scheduled a while ago (and is therefore not related in any way to mercato activities), was to analyze the operational performance of the first part of the fiscal year – from January to June, to take stock of the situation regarding the new season and to evaluate Gazidis’ work so far.
Franck Tuil, the Portfolio Manager for the Elliott Group in charge of Milan, was present at the meeting, as was President Scaroni. As reported by Milannews.it and ANSA, the BoD served to review the 2018/19 accounts and outline the club’s future strategies.
It is reported that Milan will close the 2018-19 financial year with losses of more than €80m. The budget for that year, which ended on June 30, will be officially approved in October in the next Board of Directors meeting. It represents an improvement over the losses of €128m which were registered during the 2017/18 season in which the Chinese were still in charge of the club.
ANSA and Milannews.it both report that there will be no capital increases made by the majority shareholders, even though the option was taken into consideration. The stadium issue was also discussed during the BoD meeting, in additional to a possible meeting with UEFA in the autumn.
ANSA reports that sources within the Elliott fund are saying today that one year ago they found a club “on the brink of failure and bankruptcy” with “management costs” (salaries and ownership amortization) well above revenues. Elliott, however, have a “realistic plan” to bring the club back to the time, but it will take time and patience to reach a balanced situation, in full compliance of course with the parameters of the Financial Fair Play, which has already excluded Milan from the EL.
ANSA emphasizes, however, that thanks to Elliott’s commitment – Milan, unlike many other Italian clubs, have no debits to banks or any commitment in bond markets.
This is the effect of wrong purchases….Batolachi, Matri, Etc and players leaving the club as free agents. So bad men …
an am ACMILAN fan
Absolutely not! It was the result of lack of vision of innovation and strategy for long term sustenance at a time when football was under revolution. Making some bad purchases would mean nothing if only Milan had sustenance. Innovation generates revenue and increases capital my friend. If you want to know why Milan are still 10 behind the curve, I can give you some free lessons. Benfica and Porto started the whole thing just for the money, but Dortmund toke it further for both money and Titles. They won the Bundesliga twice and reached the CL final. And then Monaco… Read more »
How does the 80 € loss mean?
Does it mean that it’s the lost recorded over the last season (thus makes a total of 200 € loss over the last 2 years)? Or, does it means that at the end of last year we have 120 € debt and after one year got it reduced to 80 €?
I think it means after all overheads, wages etc stadium costs, transfers in and transfers out etc last year all told we ended up -120 mil. and the end of this season -80 mil all told. So effectively we are losing less per year. Next year all being good we should see another minis but hopefully less of a loss.
At some point we could go into the black and be far better off for it.
bunch of incompetent losers running our club! they kept the same useless squad and brought an inexperienced clueless coach instead of a world class coach and here we are in panic mode with the league just started! There is no hope for us with this management. Just sell to some rich arab guy and let him splash money to bring world class players and coach.
You really don’t know much about football eh? Ever heard of financial fair play?
Axel I was playing football when you were still in your mama’s belly or maybe in your dad’s back! So yes I know everything about football. Better than the delusional fans like you.
Very informative article. Just to clarify, I believe there is a typo in the last line of the text, which should instead stress that Milan “have NO debts to banks or any commitments to bond markets”. That’s incredible, considering a couple of years ago we owed approx. €300mil debt. Meanwhile, the likes of Manchester United are still hovering somewhere in the region of a half-billion pound debt mark, while Athletico Madrid is somewhere around €350million in debt. Anyway, I see there is some pessimism in a couple of comments regarding the operational debt. The situation is actually improved hugely since… Read more »
with no debt we have negative balance. Man U with half a million has positive balance. Debt is a very good thing if you can make profit of it. Barca, Real & ManU are all in Debt and at the same time they have strong economic benefits. We don’t have a debt and yet we still lose money! That shows how bad we are doing. (If we kept the Miha’s team + Our young talents. We probably still be at top 10 and we would have a positive balance. But we spent nearly 500m and yet we are still out… Read more »
Samu + Laxalt + Caldara = 80m
(Very simple examples of panic buys & lack of management in last 3 years. Did anything changed this year? We are chasing an unproven forward that probably wouldn’t fit in our system for 4 weeks. We sold one of our best young players. We hired a couch with zero experience in top level. We hired a director with zero experience in top level. & Somehow magically we expect to be in UCL again. Only a miracle can get us to UCL this year.)
& U can vote down me again. Just because you are the majority does not mean you are right.
I think we’ll have to wait till Elliott sells the club to someone who give a crap. This management is too inexperienced or out of their dept. With ffp they have to hit on right players all the time. So far doesn’t look good. If they don’t get top 4, it will be another year zero a year from now.
Sad but true. We have managements that not only love money but they also like to win. Like PSG owners or Real Madrid board but with Elliot, everything is about money. I said that before. You need to search the company. We are owned by a company who killed lots of people (directly and indirectly)
*We hired a coach :) (sorry for my mistakes. It’s really hard for me to speak english.) but I think a couch would have done a better job in the first game!