QUOTE (dst @ Dec 19 2007, 03:34 PM)
Milan are the only team in Europe to declare a profit so I'm assuming the books were quite alright! The thing is, Silvio Berlusconi has never been cold before (winning means no buying) so I guess Marina (or Pier Silvio) have something to do with it.
I don't know about that dst. I mean, it ain't 1+1=2 when it comes to finance (IMG:
http://cyrus.medialayer.net/~m1ke/milanfan.com/forums/style_emoticons/default/biggrin.gif)
Well, this is the situation at the time:
Fininvest (at every quarter, as any company on the stock market) has to produce financial data to the stock exchange for revision. This data is used to regulate the price of the stock and to keep the common shareholders aware of the situation with the company(s) and it's performances.
At the time, AC Milan had declared it had X number of profit, but when that quarter came to a close, Fininvest noticed that AC Milan didn't make the profit, rather it was unrealized profit (i.e. profit that still hasn't been made, not solid), which is ok, except AC Milan wasn't clear with Fininvest about this particular piece of detail. Thus Marina on the back of Fininvest intervened ( the details of what happened later on are not available anywhere about what exactly happened). The matter was then resolved, Fininvest produced the interim report for that quarter and everything went back to normal.
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Thus, it had nothing to do with Milan's transfer(s).
U know, I just went through their annual report and, f2ck me !!! AC Milan is running as a liability for Fininvest (IMG:
http://cyrus.medialayer.net/~m1ke/milanfan.com/forums/style_emoticons/default/rolleyes.gif) So whoever says its a business is clearly unaware of how critical it's financial situation is !!!
I mean Fininvest has three flagship companies: Mediaset (as we all know, which is a television holding company), Mediolanum (which is a holding company within itself for an insurance and banca mediolanum) and Mondadori (A publishing company that's scale treads over Italy's publishing business and into the marketing segments of Europe as a whole). Of course there are other companies within Fininvest, but the three that I mentioned are her flagship companies.
Mediaset alone, produced a 1,104M operating profit at the end of last fiscal yr.
Now where does AC Milan stand in this mammoth of a company ?!
It is more of a liability than a company. Hence, if u think Milan is being run as a business ?? U are wrong. Milan is more a Silvio hobby than anything else, u know like a Billionaires toy (IMG:
http://cyrus.medialayer.net/~m1ke/milanfan.com/forums/style_emoticons/default/rolleyes.gif) I mean, it is one of the reasons why Silvio got into parliament, is it not dst (IMG:
http://cyrus.medialayer.net/~m1ke/milanfan.com/forums/style_emoticons/default/wink.gif)
Explanation ? It is owned 100% by Fininvest, meaning they aren't producing any common stocks for the common people (u or me), which decreases the profitability of a company 'business'. It's income is generated by itself. Thus any loss would be a heavy blow to the company, where as dividing the stock between other parties would decrease the impact of such a loss.
So, AC Milan is not a business. And neither is it run as a business. It takes more from Fininvest than it gives in return.
Clubs in the EPL are run as businesses. Because they get income from Barclay's Bank (EPL sponsor) and have their clubs listed on the stock exchange (which allows it to generate profit as a business), etc etc etc ..
p.s. Milan, isn't a business. It is more of 'the football club' that you preach for dst ... So rest assured (IMG:
http://cyrus.medialayer.net/~m1ke/milanfan.com/forums/style_emoticons/default/cool.gif)
EDIT:
Sources:
http://www.fininvest.it http://www.borsaitaliana.it/homepage/homepage.en.htm
This post has been edited by Rossoneri7: Dec 19 2007, 11:19 PM