The fine was already sanctioned a while ago in when the first ruling came out. Then the final ruling came in 2011 and they paid it. We are in 2012, provision was taken against the ruling because Berlusconi's defense case was weak, it was a decision the board had to make.



Oh it did affect Fininvest, they had to pay in excess of 500MM for it, but that was already provisioned for. Accounting wise, that 500MM (in fact more) was provisioned for (put aside in case they had to pay).

The article was from a financial times weekly edition .. Look Zed, as I told han, this is not about who is right or who is wrong .. It is about clarity. In a years time you will see the changes, our wages will be rather modest.

FFP is in its essence forcing clubs to act within their means. If for these recent years we were lucky to have Kaka, Silva and Ibra .. We cant anymore, because they are too expensive for us (how much did we buy them for and how much were their wages, in comparison to their current value and wages?). Why we didn't replace Gattuso and Seedorf a decade ago is a very valid question, but all this has nothing to do with the Mondadori fine. Sure it affected Fininvest, but not Milan as Milan is currently being structured to becoming a self-sustainable club. FFP is just the guidelines that Galliani is forced to work within.

This post has been edited by Rossoneri7: Jul 19 2012, 12:09 AM

Jack, since you gave us the right to post your opinion in other blogs, I posted it on mine of course mentioning you as the writer and there's a comment about you. I thought I should tell you http://lirimpercuku.wordpress.com/2012/07/...u-need-to-know/

Ha...thanks Lirim. I hope it will help cool some people down a little at least. But maybe you could mention that all figures have not been checked for complete accuracy. I'm sure i'm off by a few milion here or there.

Btw...do you no longer maintain acmilan-shqip.

It's no problem, people are liking it a lot.

Yeah of course I do maintain it, but since it's in Albanian it was a long post to translate it, so I only posted it in my blog. I can also post it in @MilanDiavolo 's site (I'm admin there too) if you're ok with it.

Highly recommended

An article/post, of technical analysis posted in May and shows with factual numbers and a clear parallel to what the short-term future holds for Milan.

Its a pretty long read, but anyone who is interested in knowing the reasons behind our current situation in detail should spare some time in reviewing the link above.

Regards

^ Thanks.

I'm currently reading that article,but something I noticed is a cycle(that most of you know).We sell a big player every two,three seasons to cover the loss,in the meantime we would either buy some cheap bargains(a la Ibra) or Brazilians with high potential,so we can sell them on a profit.So,I ask the question.How is selling Thiago Silva,and Ibra any indication of a restructuring of the club to become self sufficient?Can't it be just a start of another vicious cycle?

i already posted a link to that!! nice to know people are reading my posts....NOT!

@mishie not intentional my friend, but i went through it vigoriously when a friend emailed me the link.. And it was so well written, very interesting indeed.

@William, we only started selling players when their value appreciated and so did the wage on offer by the other clubs. Chelsea-Sheva at GBP30MM (some EUR40M at the time), City/Madrid-Kaka at EUR60MM (previous offer EUR100MM), PSG Silva/Zlatan at EUR70MM.. And what wages tempted them to make the switch?

Milan's most expensive purchase was Rui Costa at 30MM and that was at the turn of the millenium. We bought them through got a few titles along the way, we can not match what the market is offering them, so we sell. Milan ran at a loss to maintain the quality, as much as Berlusconi tried to support the club last title being in 2011, Milan can not depend on him anymore. So that wage bill that used to be payrolled from Silvio no longer stands (60MM to cover losses & transfer fees that brought in players). The club has to live within its own means now..

So to answer your question, its was a vicious cycle, something that had forced us to sell. We don't feel it, because we are the end users of this product Milan. We want it to be one of the pillars of European football, as we all knew it. But external forces do not support our ambitious appetite anymore berlusconi, an arab or chinese, doesnt make a difference this Milan has to bear tough times now. If a bid of 30MM comez for KPB followed by wages of 6MM consider him gone. Unless KPB deckined the massive pay increase and pledged his love for Milan. Ala Paulo Maldini.

Then again, Silva&Ibra could very well be the last of these mega deals on offer in the market, if FFP is followed through, come 2015 Milan could be in a better position than what we are on now.

Just read your post jack and then skipped to this page...havn't seen all of the replies yet. Anyways, brilliant work.

Wow, thank you for the detailed breakdown, Jack!

I think the major thing to look at is the risk of missing out on top 3 though. Sure, we could get there, but considering how tight our income is right now as you say, rolling the dice on getting ~39m or not getting it sounds foolish to me. Our squad is so thin on quality, a couple of key injuries here or there can easily derail that goal...and we all know about injuries at Milan!

Then, there could be future effects of missing out - lower sponsor interest, less gate revenue, players bailing, etc. By the time FFP does come into play, we might not be able to compete and qualify anyways (well maybe for Europa). Is Silva and/or Ibra the difference between qualifying or not? Of course there is no clear answer now.

We'll just have to wait and see what happens, cross our fingers, and hope for an overachieving, grinding out results type season like we had with Leo after Kaka and Maldini left. There's no use crying over spilled milk.

This post has been edited by servbot: Jul 25 2012, 04:13 AM

Milan Group results for FYE2012, our results are as follows:

-Revenue EUR329.3MM (2011: EUR266.2MM).
-*Operating Profit EUR5MM (2011: EUR74.2MM Loss)
-Net Loss EUR6.9MM (2011: EUR67.2MM Loss)

*Operating Profit comes after paying core operations of the group, wages inclusive.


UEFA start monitoring teams qualifying in its competitions from the 2013/14 season. And this will take into account losses that were accounted for in the two perceeding years (2011/12 and 2012/13). This will be known as the first monitoring season (2013/14, 2013/12 & 2012/11) and UEFA will allow for an aggregate loss of EUR45MM.

Milan so far have aggregate net loss of EUR74.1, while Uefa will only allow EUR45MM for the first monitoring season. Second monitoring season would exclude season 2012/11 reaults .. So on and so forth. As illustrated below:
(IMG:http://1.bp.blogspot.com/-I0z151gLKG4/UEcDlqNazlI/AAAAAAAAGPA/uH-EXJGVsOw/s1600/3%20FFP%20Acceptable%20Deviation.jpg)

So basically we've sold everyone and we're still doing crap in regards to FFP.

Why do they have to take into account the two preceding years? Stupid.

Does anyone have a breakdown of our finances? I know R7 posted the basic outlines before which resulted in a 7m loss, just curious as to where the money has gone.