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AC Milan - Milanfan.com _ Other _ Milan Financials

Posted by: Jack Sparrow May 4 2012, 10:16 AM

I think this is a must read for us Milanfans on exactly what is happening.

I just skimmed through at the moment, but a few things stand out.

1. Our wage bill has been increasing and is absolutely insane!!
2. Our commercial income is actually very good considering our market reach.
3. We are really losing out on matchday income at the stadium.

http://www.rossoneriblog.com/2012/05/04/milans-financial-state/

Posted by: kurtsimonw May 4 2012, 10:21 AM

We need to start building our own stadium.

Otherwise Serie A is going to turn into the EPL in the 1990s and Juve will be Man U.

Posted by: Jack Sparrow May 4 2012, 10:29 AM

Yeah..but as you can see in the article...to build a stadium we need to take on a loan. To take on a loan we need to clear our debts. To clear our debts we need more income. But to get more income we need our own stadium. biggrin.gif

Posted by: William405 May 4 2012, 11:11 AM

QUOTE (Jack Sparrow @ May 4 2012, 12:29 PM) *
Yeah..but as you can see in the article...to build a stadium we need to take on a loan. To take on a loan we need to clear our debts. To clear our debts we need more income. But to get more income we need our own stadium. biggrin.gif


We need Silvio... wink.gif

Posted by: Jack Sparrow May 4 2012, 12:01 PM

That move is checkmated too, thanks to FFP.

Posted by: Zed.D May 4 2012, 12:50 PM

Jack,

Do you think we'd build our own stadium if we cleared our debts? we had the chance to do it before FFP was introduced. nah, I think B&G are simply too sentimental about San Siro. we missed our chance to move away from San Siro, but missed it and now probably can never do it as things stand.

Just great.

QUOTE
Mathieu Flamini Midfielder 28 4,500,000

Gennaro Gattuso Midfielder 34 4,000,000

Gianluca Zambrotta Defender 35 3,500,000

Clarence Seedorf Midfileder 36 3,000,000


No comment... huh.gif

Posted by: Zed.D May 4 2012, 12:50 PM

Thanks for posting this article, btw. very informative.

Posted by: Jack Sparrow May 4 2012, 12:54 PM

Yes..the wages are mind-boggling. I don't fault our new policy of offering contract discussions only at the end of the season.

I think next season, we should keep a keen eye out on the numbers. Especially with the players who are not extended.

Posted by: Zed.D May 4 2012, 12:57 PM

QUOTE
It should be said that Barbara Berlusconi has expressed her desire to build a self owned stadium for the club.


??

Does this mean we still need to clear our debts?

Posted by: han2503 May 4 2012, 01:15 PM

The major problem here is not the San Siro. I do believe that Inter and Milan being the clubs they are and having the owners they do, should be able to come to an agreement with the Milan council. I personally don't want to see us moving to some generic FIFA stadium, just for the hell of it. The San Siro is a massive stadium and a club like Milan should not settle for some 40,000 seater.

The main problem has always been the player wages. Rino, Ambro, Flamini, Seedorf, Robinho, Zambro, etc. These guys are on massive wages, when mos of them are not even regulars on the team. It's just an unthinakble situation that Galliani simply has to deal with this summer

Posted by: Zed.D May 4 2012, 01:26 PM

Han, do you really think we can compete at the highest level again if we only sort out our wages?

Sure we need to do that but we also need to do something about the stadium. it's astonishing that we earn less than 40 million compared to Arsenal, Barca, Man U or Real's 100+. I guess normally that number should be between 60-80 for us. 20-40 million more per year would make a good difference for us.

QUOTE
I personally don't want to see us moving to some generic FIFA stadium, just for the hell of it. The San Siro is a massive stadium and a club like Milan should not settle for some 40,000 seater.

Come on, the capacity and the design of the stadium is not even the issue.

Also:

QUOTE
the stadium is in poor condition and does not have the facilities to host sponsors and VIPs etc. For the same reasons the stadium are mostly half full as fans are not presented to the pleasant facilities a modern stadium must have.

Posted by: Zed.D May 4 2012, 01:41 PM

QUOTE (Zed.D @ May 4 2012, 03:27 PM) *
??

Does this mean we still need to clear our debts?


That'd be no I think...

In Barbara we trust!! wub.gif

Posted by: Jack Sparrow May 4 2012, 01:56 PM

I agree. The player wage cuts (and keep in mind we can only question the 'oldies') will save us maybe 20-25 million a season max.

Posted by: acid911 May 4 2012, 02:04 PM

QUOTE (Jack Sparrow @ May 4 2012, 05:56 PM) *
I agree. The player wage cuts (and keep in mind we can only question the 'oldies') will save us maybe 20-25 million a season max.

That's max enough, if you ask me. wink.gif 30 million net could mean one or two quality extra players every year.

Posted by: kurtsimonw May 4 2012, 02:07 PM

Problem is there's a difference between saving £30m and getting £30m. Most of that money will not be re-invested, in my opinion.

Posted by: acid911 May 4 2012, 02:14 PM

QUOTE (kurtsimonw @ May 4 2012, 06:07 PM) *
Problem is there's a difference between saving £30m and getting £30m. Most of that money will not be re-invested, in my opinion.

Still better than giving it away, now, is it? smile.gif unsure.gif Maldini earned 1m toward the end, and his performance was miles ahead of the above mentioned players, in that he played non-stop week in, week out. Or should I say, started every week. If they are to be retained it should probably be at that amount. 1m at most. At this time.

Or we can do almost as good by signing up good prospects or bringing them through our youth system and handing them 1 million roundabouts per season. If that 30 million is to be saved, then so be it. If invested? Nothing better.

Posted by: X-Offender May 4 2012, 02:24 PM

There have been talks about San Siro being renovated this summer, including Sky boxes, bringing the pitch closer to the stands, removing the barriers between sectors, and a better sanitary system. It should be enough to make it a FIFA top-rated stadium, like Camp Nou and Bernabeu.

Posted by: Zed.D May 4 2012, 02:31 PM

That doesn't solve the main issue though, it'd still be owned by the city municipality and we'll still have to pay rent.

Posted by: han2503 May 4 2012, 04:09 PM

QUOTE (Zed.D @ May 4 2012, 12:26 PM) *
Han, do you really think we can compete at the highest level again if we only sort out our wages?

Sure we need to do that but we also need to do something about the stadium. it's astonishing that we earn less than 40 million compared to Arsenal, Barca, Man U or Real's 100+. I guess normally that number should be between 60-80 for us. 20-40 million more per year would make a good difference for us.


Come on, the capacity and the design of the stadium is not even the issue.

Also:

We pay one of the highest payrolls in Europe, even when compared to clubs like Real, Barca and City, who have players like C. Ron, Messi, Aguero, Silva, etc, etc, etc. Certainly the highest one in Italy by a bit of a margin, and this when taking into account Inter don't have a meager payroll of their own. When you consider out roster, we only have 2 to 4 real super star players on the team, and even that number can be brought into question. Yet we're paying some ridiculous wages. If you think shaving off 30-40 million off that won't make a huge difference, think again. We're talking about this number per annum. So it's not a one time thing cut.

Yes, the stadium is still a huge issue. But I personally wouldn't like to see us moving out of the San Siro. If an agreement cannot be made with Inter and the City council in the future, than yes it will be something that has to be seriously considered.

Posted by: Zed.D May 4 2012, 06:13 PM

Dude, I completely agree with what you say about the wages. hopefully this will FINALLY be the year we offload those veterans who are of no use anymore (I tried to be as polite as possible!).

Posted by: han2503 May 4 2012, 07:26 PM

QUOTE (Zed.D @ May 4 2012, 05:13 PM) *
Dude, I completely agree with what you say about the wages. hopefully this will FINALLY be the year we offload those veterans who are of no use anymore (I tried to be as polite as possible!).

biggrin.gif biggrin.gif

I sometimes feel bad when I look at someone like Rino for examle. A player who has always stood as one of my personal favourites, and now when I watch him all I can think about is how he's just dead weight in this team in the capacity of a player. I think he still has a lot to conribute to this club, because he's as passionate as they come and is still hugely important within the group. But as a player, he's only a hindrance at this point

Posted by: TriniKing_CE May 5 2012, 01:51 AM

QUOTE (han2503 @ May 4 2012, 02:26 PM) *
biggrin.gif biggrin.gif

I sometimes feel bad when I look at someone like Rino for examle. A player who has always stood as one of my personal favourites, and now when I watch him all I can think about is how he's just dead weight in this team in the capacity of a player. I think he still has a lot to conribute to this club, because he's as passionate as they come and is still hugely important within the group. But as a player, he's only a hindrance at this point

+1 sleep.gif

Posted by: Fillipo Simone May 5 2012, 07:01 AM

QUOTE (han2503 @ May 4 2012, 08:26 PM) *
biggrin.gif biggrin.gif

I sometimes feel bad when I look at someone like Rino for examle. A player who has always stood as one of my personal favourites, and now when I watch him all I can think about is how he's just dead weight in this team in the capacity of a player. I think he still has a lot to conribute to this club, because he's as passionate as they come and is still hugely important within the group. But as a player, he's only a hindrance at this point

It's sad, yes. I wouldn't say he's a hindrance, but I agree with you. My only demand is - if we're letting go world class veterans like Zambrotta or Seedorf then please bring in decent replacements with the capacity to become WC. If we're again gonna sign more Mesbah's and Taiwo's then releasing would be a mistake.

Posted by: Zed.D May 5 2012, 07:32 AM

Kolarov doesn't seem to play much for Citeh. instead of signing someone we don't need (Tevez/Balo) for arguably the same price (if not more), we should focus on him while he's out of favor with Mancio.

Posted by: han2503 May 5 2012, 08:12 AM

QUOTE (Zed.D @ May 5 2012, 06:32 AM) *
Kolarov doesn't seem to play much for Citeh. instead of signing someone we don't need (Tevez/Balo) for arguably the same price (if not more), we should focus on him while he's out of favor with Mancio.

Yeah he'd be an ok signing for the LB position, nothin spactacular but he should do the job better than all of the others combined. Plus he has Serie A experiance.

The only problem is that City would most likely want to keep him since they basically want 2 at least good to great players for every position

Posted by: Zed.D May 5 2012, 08:22 AM

Oh, I don't want spectacular players as they remain dreams for us with the financial state of the club being as it is. I'm very OK with Kolarov.

Can Citeh afford two great players for every position though? I read they're HUGELY in debt.. they'll have to slow down a bit on the spending.

Posted by: han2503 May 5 2012, 09:59 AM

QUOTE (Zed.D @ May 5 2012, 07:22 AM) *
Oh, I don't want spectacular players as they remain dreams for us with the financial state of the club being as it is. I'm very OK with Kolarov.

Can Citeh afford two great players for every position though? I read they're HUGELY in debt.. they'll have to slow down a bit on the spending.

The dept can always be covered though.

Posted by: Rossoneri7 May 6 2012, 07:31 AM

QUOTE (han2503 @ May 5 2012, 11:59 AM) *
The dept can always be covered though.


How?

Posted by: han2503 May 6 2012, 10:01 AM

QUOTE (Rossoneri7 @ May 6 2012, 06:31 AM) *
How?

You really believe that Man City will "play fair" when the FFP rules come into play? They've got endless money backing them up. Those depts will be handled one way or the other.

Posted by: kurtsimonw May 6 2012, 10:54 AM

FFP won't work.

English clubs, City inparticular, will keep spending and say "Yeah, what're you gonna do about it?" and nothing will be done. The English clubs that overspend are also the big draws for FIFA/UEFA, so they're hardly going to ban them from Europe are they?

These rules are a joke anyways, just proof that they're doing everything they can to give top clubs an extra advantage.

Posted by: X-Offender May 6 2012, 10:58 AM

QUOTE (kurtsimonw @ May 6 2012, 11:54 AM) *
FFP won't work.

English clubs, City inparticular, will keep spending and say "Yeah, what're you gonna do about it?" and nothing will be done. The English clubs that overspend are also the big draws for FIFA/UEFA, so they're hardly going to ban them from Europe are they?

These rules are a joke anyways, just proof that they're doing everything they can to give top clubs an extra advantage.


That's what you think, but I wouldn't be surprised if they actually do ban them from European competitions. Platini is stubborn ****, he always wants things to go his way.

Posted by: kurtsimonw May 6 2012, 11:04 AM

I just don't see it, same with Barca.

The only thing FFP does is guarentee Madrid whatever success they want. Even after signing Ronaldo they made a profit that year, it's absurd how much money they make. They can sign who they want, while other clubs - Barca included - make a loss.

I don't see how it works. Yet another thing that's not been thought through at all.

Posted by: Rossoneri7 May 6 2012, 11:08 AM

QUOTE (han2503 @ May 6 2012, 12:01 PM) *
You really believe that Man City will "play fair" when the FFP rules come into play? They've got endless money backing them up. Those depts will be handled one way or the other.


Its debt tongue.gif

City have a massive sponsorship deal, the biggest in England I believe, that's where their money will be coming from. Mansour cant be pumping money in to cover losses, but there could put in place an SPV established to buy off City's debt and have it settled in that way, however not sure if that is legitimate under new FFP rules.

Hence, to answer your question City has to play fair, however its UEFA's tolerance at allowing these 'BIG' clubs more time to get things in line ... That we have yet to see, but cant pass premature judgments like that han smile.gif

Posted by: acid911 May 6 2012, 11:51 AM

QUOTE (Rossoneri7 @ May 6 2012, 03:08 PM) *
Its debt

Got him! friends.gif

Posted by: han2503 May 6 2012, 01:05 PM

QUOTE (Rossoneri7 @ May 6 2012, 11:08 AM) *
Its debt tongue.gif

City have a massive sponsorship deal, the biggest in England I believe, that's where their money will be coming from. Mansour cant be pumping money in to cover losses, but there could put in place an SPV established to buy off City's debt and have it settled in that way, however not sure if that is legitimate under new FFP rules.

Hence, to answer your question City has to play fair, however its UEFA's tolerance at allowing these 'BIG' clubs more time to get things in line ... That we have yet to see, but cant pass premature judgments like that han smile.gif

biggrin.gif Don't get on the acid train!!!

You just identified one method for them to slip on through. And I'm sure there are even more ways to bend things around.

But like kurt, I don't believe UEFA will be banning any top club. They're all about the money, and stopping clubs like City,. Chelsea, Man U, Milan, Inter, Barca would mean huge losses for them. They'd be ok with leaving out some Russian team, they're all in for applying the rules in those circumstances, but when it does not suite them they're willing to look the other way.

Posted by: Rossoneri7 May 6 2012, 01:22 PM

QUOTE (han2503 @ May 6 2012, 03:05 PM) *
biggrin.gif Don't get on the acid train!!!

You just identified one method for them to slip on through. And I'm sure there are even more ways to bend things around.

But like kurt, I don't believe UEFA will be banning any top club. They're all about the money, and stopping clubs like City,. Chelsea, Man U, Milan, Inter, Barca would mean huge losses for them. They'd be ok with leaving out some Russian team, they're all in for applying the rules in those circumstances, but when it does not suite them they're willing to look the other way.


I identified one method and can come up with another five, but if that is considered legitimate under the FFP rules, we have yet to see.

Remember han, the BIG clubs asked for the FFP rules, they asked because they wanted to be protected from big spending clubs like Chelsea, City, and the likes ... Also to even out the playing field, but above all it was the big clubs that pushed for it.

Now whether UEFA will ban clubs, we can not 'prematurely' decide about that, we can only hope that UEFA will tolerate stuff and take clubs on a case-by-case basis to sort out certain problems (such as our financial strength, cuz within 3 years we could be bankrupt under FFP rules).


Big clubs bring money to UEFA, yes they do, but how come the FFP rules didn't get any resentment from the top clubs? apart from Wenger who complained about City, and in City's defense they signed a sponsorship deal worth $X and that was all they had to do to secure funds.

Again, I believe the FFP will be implemented slowly so as not to cause a shock, but at the same time clubs have to show their commitment (for example we implemented a wage cap amongst other things) ...

In conclusion, you cant say much about it until it has been implemented.

Posted by: han2503 May 6 2012, 07:24 PM

QUOTE (Rossoneri7 @ May 6 2012, 01:22 PM) *
I identified one method and can come up with another five, but if that is considered legitimate under the FFP rules, we have yet to see.

Remember han, the BIG clubs asked for the FFP rules, they asked because they wanted to be protected from big spending clubs like Chelsea, City, and the likes ... Also to even out the playing field, but above all it was the big clubs that pushed for it.

Now whether UEFA will ban clubs, we can not 'prematurely' decide about that, we can only hope that UEFA will tolerate stuff and take clubs on a case-by-case basis to sort out certain problems (such as our financial strength, cuz within 3 years we could be bankrupt under FFP rules).


Big clubs bring money to UEFA, yes they do, but how come the FFP rules didn't get any resentment from the top clubs? apart from Wenger who complained about City, and in City's defense they signed a sponsorship deal worth $X and that was all they had to do to secure funds.

Again, I believe the FFP will be implemented slowly so as not to cause a shock, but at the same time clubs have to show their commitment (for example we implemented a wage cap amongst other things) ...

In conclusion, you cant say much about it until it has been implemented.

Did we really implement a wage cap? Because Ibra earns a huge 9m per year...

Posted by: acid911 May 7 2012, 09:32 AM

You guys do know that the FFP is just plain balderdash, right? huh.gif unsure.gif Anything they want to implement can be surpassed, all their rules bended by any willing soul. All these filthy rich guys (as well as those with dirty black money who want to turn it white) need to do is funnel the funds via sponsorship deals.

If Berlusconi wanted he can throw in 50m any given year using a fake front company. Same goes for almost every other big club, if they want the cash, they can bring it in bypassing any UEFA rules and regulations.

Posted by: Jack Sparrow May 7 2012, 09:34 AM

Yeah..but that article also talked about UEFA assessing the market value for sponsorship deals. So they can't really bypass that too easily.

Posted by: acid911 May 7 2012, 09:44 AM

I know, but it'll be like the rest of the financial world, the one holding the money will (almost) always be one step ahead of the one doing the auditing. sleep.gif In theory FFP may be a good idea that took some time coming, but only in theory. If I am a Russian oil tycoon, or have loads and loads of black money, football is my ticket to white.

European football in particular. How else do you think we arrived at the massively inflated figures of today.

Posted by: kurtsimonw May 7 2012, 09:51 AM

If they actually enforced this, a lot of football clubs would just die. I don't think Platini graps the idea that the majority of teams make a loss, so what are they meant to do? Sell players every year to break even until they have nobody left? If enforced properly, you might get 10-12 teams that can get into Europe?

Just another way to keep the rich clubs richer (in terms of success) and give the smaller clubs even less hope of success.

Posted by: Rossoneri7 May 8 2012, 10:55 AM

QUOTE (han2503 @ May 6 2012, 09:24 PM) *
Did we really implement a wage cap? Because Ibra earns a huge 9m per year...


Yes we did, with the exception of Ibra of course.

QUOTE (kurtsimonw @ May 7 2012, 11:51 AM) *
If they actually enforced this, a lot of football clubs would just die. I don't think Platini graps the idea that the majority of teams make a loss, so what are they meant to do? Sell players every year to break even until they have nobody left? If enforced properly, you might get 10-12 teams that can get into Europe?

Just another way to keep the rich clubs richer (in terms of success) and give the smaller clubs even less hope of success.


Well, if FFP was implemented, you wont have high wages/transfer fees anymore. Financials of clubs will be improved if you have a regulatory body sanctioning them.

Smaller clubs don't have to worry about complying, as they are not even participating in Europe, Medium sized clubs will, but this system only serves to even the playing field and maybe giving a Greek team a chance of a EL final?

Again, you guys just can not jump to conclusions when the FFP has yet to be put in practice, assumptions are one thing and conclusions are another.

ps .. I see opportunity in the FFP, just that the clubs need time to get accustomed to it.

Posted by: Jack Sparrow May 10 2012, 10:21 AM

QUOTE
The Mayor of Naples has presented plans for the new stadium, which will resemble “a shell at the feet of Mount Vesuvius.”

President Aurelio De Laurentiis has repeatedly stated he wants to construct a new arena for the club to replace the San Paolo or at least restructure it.

“For three more years Napoli will play at the San Paolo. Once the new stadium in the Ponticelli area is completed, work will begin on restructuring the San Paolo,” Mayor Luigi De Magistris told Radio Crc.

“The shell at the feet of Mount Vesuvius is a proposal put forward by the council for the construction of a new stadium, an activity I have said I will do from the start of my work as Mayor.

“Finally someone put forward a serious project and it involves the construction of a new arena in the Ponticelli area and a restyling of the San Paolo.

“We want it to be not only a stadium, but a stadium-arena where other than football games it represents a meeting place for youngsters, a cinema, shops and gyms.

“De Laurentiis will participate in the construction of a new stadium, as any project will be made in conjunction with Napoli. In 2014 the contract between the council and Napoli football club expires, so we have to work both on renewing that and ensuring participation in the new stadium.

“In any case, over the next three years the San Paolo will also be improved and renewed, as we are working with De Laurentiis on this. We’ll improve the toilets, pitch-side advertising boards, the pitch and other significant alterations.”


How come there is no transparency when it comes to Milan?! sad.gif

Posted by: acid911 May 10 2012, 10:59 AM

QUOTE (Jack Sparrow @ May 10 2012, 02:21 PM) *
How come there is no transparency when it comes to Milan?!

That's exactly what I asked for in the other thread, yesterday. sad.gif Where does all the money go?!

Posted by: Jack Sparrow May 10 2012, 11:20 AM

No I meant transparency on the stadium plans.

The money goes into the wage bill we already know this. 230 million revenue and 192.8 on wages. biggrin.gif

Posted by: acid911 May 10 2012, 11:42 AM

QUOTE (Jack Sparrow @ May 10 2012, 03:20 PM) *
No I meant transparency on the stadium plans.
The money goes into the wage bill we already know this. 230 million revenue and 192.8 on wages.

I know, and it shouldn't, we should try and cut it down to 100/120 million at most. dry.gif And also increase the revenue any way we can (even if it means exploring new markets like Korea/Japan as I said). And then try and cut down on injuries at all costs, that's the most important part.

It does look like they are saying goodbye to heavily-paid seniors now, and chaps like Flamini, etc. Which is good.

Posted by: Jack Sparrow May 10 2012, 12:49 PM

Yes...and look how wonderfully that has worked for Arsenal. tongue.gif

I think our commercial income is going well. We have a proper strategy there. Perhaps they're taking on issues one at a time. This season fix the wage bill. Next season fix the stadium problem. So on and so on...

Posted by: acid911 May 10 2012, 02:22 PM

QUOTE (Jack Sparrow @ May 10 2012, 04:49 PM) *
Yes...and look how wonderfully that has worked for Arsenal.

Wait a minute, did you not say something exactly along these lines in another thread. huh.gif laugh.gif

QUOTE (Jack Sparrow @ May 10 2012, 04:49 PM) *
I think our commercial income is going well. We have a proper strategy there. Perhaps they're taking on issues one at a time. This season fix the wage bill. Next season fix the stadium problem. So on and so on...

Hope so, man. smile.gif Let's just say that compared to our current standings (financially and Milan as a brand), I have always felt we should have achieved more these past few years, and well, dead weight should have been replaced with cheaper, younger and quality players right after the 2007 win. But let's hope for the best now.

Posted by: Jack Sparrow May 11 2012, 10:31 AM

An article on Gazzetto dello Sport saying that we are chasing some serious investment this season. Apparently the options mooted are Arab investment or the Hong Kong Stock Exchange. unsure.gif

Posted by: acid911 May 11 2012, 11:52 AM

Serious investment, love it, love it. sleepysmiley03.gif Wouldn't mind that one bit. It would be great if we can find some further financial footing, and become a force again - we are just this far away from being one. One or two good players, and much less injuries, and bam! We'll be the 2nd or 3rd best club in the world again.

And who knows, maybe even the best in a few years time. We certainly have the panache to compete with clubs like City, Madrid, Barcelona, Chelsea, United and Bayern. smile.gif Milan matches them blow for blow, just can't find to finish the job where it matters. With some good investment, and great signings, we can. I am sure.

Posted by: Zed.D May 11 2012, 11:57 AM

We need more than 1-2 two good players to become the best. we need about 3 great and about 2 good players.

1 good CB.
1 great CM
1 great AM
1 good RB
1 great LB

Posted by: acid911 May 11 2012, 12:03 PM

Well I just think the most pressing matter is a creative AM. smile.gif A good, even great creative attacking midfielder. Defense (CB, RB, LB) is the 2nd most pressing matter, and while it would be great if we did, I have faith in Silva as the best defender in the world to do the job, along with the usual suspects. If we get a top CB, good, if not, not bad.

I think our biggest asset will be our forwards, and we'll need to increase the potency and creativity of our attack.

Posted by: Jack Sparrow May 21 2012, 01:42 PM

New article on Milan finances:

http://www.rossoneriblog.com/2012/05/17/e255-9-million-reasons-why-berlusconi-is-not-stingy/#more-46617

QUOTE
The 255.9 million euro is an average 51.2 a year which Berlusconi has covered every single time. As Galliani stated when the latest financial report was released:

“The losses have been completely covered by Fininvest, even though we’re number one in terms of commercial rights. I thank the president for his passion… Without Fininvest, we couldn’t be an example of sporting excellence the world over.”

The truth is that Berlusconi has invested heavily in the club the last five years. The truth is also that because the club has had so great wage expenses that the money was not used in the transfer market but instead used to cover the losses instead of investing. This is one the points I stated in the article I referred to above. The wages the club has paid was too much for the business to healthy.

It is not because Milan does not spend any money. But even with the huge financial support from the Berlusconi family it is impossible for Milan to compete with clubs like United, Barca, Real and Bayern as these clubs generate so much more revenue than our beloved club that the extra money from Berlusconi is not enough to close the gap.

Posted by: Fillipo Simone Jun 13 2012, 11:23 AM

I'll be interested to read a new financial report and a proper opinion on what the heck's been going on at Milan.

Posted by: Rossoneri7 Jun 14 2012, 03:50 PM

QUOTE (Fillipo Simone @ Jun 13 2012, 01:23 PM) *
I'll be interested to read a new financial report and a proper opinion on what the heck's been going on at Milan.


The FFP is the only reason this all is happening. All clubs will go through this now. Silvio is not allowed to cover our losses anymore, else Milan will be expelled from UEFA competition. Silvio is allowed however a cushion for the coming three years to cover combined losses of EUR45M. He can spread that contribution for over three years. Problem is it isn't enough to cover a single year's Net Loss.

Our Revenue stream was hit last season, as the new TV Rights - Melandri-Gentiloni law was passed in 2010/2011. TV revenue represents 50% approx for every past season. We can no longer negotiate for better deals like that, the current law implies the following:

40% distributed equally between all 20 Serie A clubs.
25% divided up based on # of fans (ie Juve).
5% on population of city.
5% based on classification in current year.
15% on classification achieved in the past 3 years.
10% clubs historical sporting results from 1946/1947 season up till the 6th season before the current.

Then you have what Jack just pointed out in another thread, our wage bill represents 72% of our Revenue. Revenue? Did you know that the fixed cost of our revenue far exceeds it? Hence we rarely make any Gross profit to cover that 72%. In English; we cant afford our own wage bill.

Galliani is in a situation, no one would want to be in, lets put it that way. Of all the points stated above, in simplified terms Milan has to be self sufficient from this summer onward.

People mock Silvio effortlessly, as if he's the culprit, not even comprehending how much he had to shelve into the club for it to survive. Refresh: Milan was bankrupt before Silvio.

Madrid & Barca earn 600 plus in revenues, we only make 50% of that by selling Kaka in 2009. Thats not including the top three of the EPL. Drawing comparisons is ridiculous.


Milan has to sell, Milan has to slash its wage bill, needs to find new revenue streams, and above all we all need patience.

Milan has to adapt in 2012, if by force, then by force .. Hence why we all are feeling helpless with all the question marks.

Better now than latter on.



Posted by: han2503 Jun 14 2012, 04:21 PM

QUOTE (Rossoneri7 @ Jun 14 2012, 03:50 PM) *
The FFP is the only reason this all is happening. All clubs will go through this now. Silvio is not allowed to cover our losses anymore, else Milan will be expelled from UEFA competition. Silvio is allowed however a cushion for the coming three years to cover combined losses of EUR45M. He can spread that contribution for over three years. Problem is it isn't enough to cover a single year's Net Loss.

Our Revenue stream was hit last season, as the new TV Rights - Melandri-Gentiloni law was passed in 2010/2011. TV revenue represents 50% approx for every past season. We can no longer negotiate for better deals like that, the current law implies the following:

40% distributed equally between all 20 Serie A clubs.
25% divided up based on # of fans (ie Juve).
5% on population of city.
5% based on classification in current year.
15% on classification achieved in the past 3 years.
10% clubs historical sporting results from 1946/1947 season up till the 6th season before the current.

Then you have what Jack just pointed out in another thread, our wage bill represents 72% of our Revenue. Revenue? Did you know that the fixed cost of our revenue far exceeds it? Hence we rarely make any Gross profit to cover that 72%. In English; we cant afford our own wage bill.

Galliani is in a situation, no one would want to be in, lets put it that way. Of all the points stated above, in simplified terms Milan has to be self sufficient from this summer onward.

People mock Silvio effortlessly, as if he's the culprit, not even comprehending how much he had to shelve into the club for it to survive. Refresh: Milan was bankrupt before Silvio.

Madrid & Barca earn 600 plus in revenues, we only make 50% of that by selling Kaka in 2009. Thats not including the top three of the EPL. Drawing comparisons is ridiculous.


Milan has to sell, Milan has to slash its wage bill, needs to find new revenue streams, and above all we all need patience.

Milan has to adapt in 2012, if by force, then by force .. Hence why we all are feeling helpless with all the question marks.

Better now than latter on.

Nice read.

I think the problem right now is the product. The Milan product is just not as attractive to the really big markets such as Asia for example. Where do clubs like Man U and Real get that cash? For Man U it's certainly not TV deals, it's marketing, branding, etc.

We do not have that. And to have that you need to be successful and have big name players. Selling the top players imo would only further dig the grave we're currently spiralling into. Ohter problems such as the league we play in and the massive stadium issue also need to be taken into account. The management need to set out a plan, either moving to a new stadium or purchasing San Siro. If Silvio no longer has the passion to continue to pump money into the club (which is understandable to a point) then he needs to find investors or buyers.

I'm sure there are various financial solution which can be taken by a company which is in the red.

Posted by: Rossoneri7 Jun 14 2012, 04:52 PM

QUOTE (han2503 @ Jun 14 2012, 06:21 PM) *
Nice read.

I think the problem right now is the product. The Milan product is just not as attractive to the really big markets such as Asia for example. Where do clubs like Man U and Real get that cash? For Man U it's certainly not TV deals, it's marketing, branding, etc.

We do not have that. And to have that you need to be successful and have big name players. Selling the top players imo would only further dig the grave we're currently spiralling into. Ohter problems such as the league we play in and the massive stadium issue also need to be taken into account. The management need to set out a plan, either moving to a new stadium or purchasing San Siro. If Silvio no longer has the passion to continue to pump money into the club (which is understandable to a point) then he needs to find investors or buyers.

I'm sure there are various financial solution which can be taken by a company which is in the red.


But you didn't read it well enough.

QUOTE
The FFP is the only reason this all is happening. All clubs will go through this now. Silvio is not allowed to cover our losses anymore, else Milan will be expelled from UEFA competition. Silvio is allowed however a cushion for the coming three years to cover combined losses of EUR45M. He can spread that contribution for over three years. Problem is it isn't enough to cover a single year's Net Loss.


Silvio is not allowed to.

Blame FFP.

Reality of the situation, I'm giving you a word of advise, don't expect a spectacle as we were used to previously. This is a totally different Milan and we will need at least 3 years to start targeting silverware. Refer to the above.

So what is your pick .. We either go to the CL with KPB and Pato as our star players or get expelled and keep Thiago and Zlatan? That is very real han, it is not an opinion of mine, i wish it was, its our reality.

Posted by: Zed.D Jun 14 2012, 07:29 PM

OK, I understand the club needs to sell, what I don't understand is why Silva when there's Zlatan and Robinho? the guy's now on the wrong side of 30, earns WAY too much for a club in a shitty financial state like Milan, and I don't think technically he is as irreplaceable as Silva. as for Robinho, there's El Sha. I mean if we're so screwed then we have no choice but to finally give our youth the right time to grow into first team material. and we all can agree El Sha is talented enough to do that.

Posted by: acid911 Jun 14 2012, 07:35 PM

QUOTE (Zed.D @ Jun 14 2012, 11:29 PM) *
OK, I understand the club needs to sell, what I don't understand is why Silva when there's Zlatan and Robinho? the guy's now on the wrong side of 30, earns WAY too much for a club in a shitty financial state like Milan, and I don't think technically he is as irreplaceable as Silva. as for Robinho, there's El Sha. I mean if we're so screwed then we have no choice but to finally give our youth the right time to grow into first team material. and we all can agree El Sha is talented enough to do that.

I still blame the bald beautiful. dry.gif Galliani is disjointed from Berlusconi who is disjointed from Barbara. The only three players in the whole game that matter. I practically thought they'd be looking for more suiters for Robinho after he declined the Malago offer - they were offering 20 million which is pretty nice.

Posted by: han2503 Jun 14 2012, 08:33 PM

QUOTE (Rossoneri7 @ Jun 14 2012, 04:52 PM) *
But you didn't read it well enough.



Silvio is not allowed to.

Blame FFP.

Reality of the situation, I'm giving you a word of advise, don't expect a spectacle as we were used to previously. This is a totally different Milan and we will need at least 3 years to start targeting silverware. Refer to the above.

So what is your pick .. We either go to the CL with KPB and Pato as our star players or get expelled and keep Thiago and Zlatan? That is very real han, it is not an opinion of mine, i wish it was, its our reality.

I don't believe for one second that UEFA will start expelling their money making clubs out of the competition. Chelsea, City, Man U. You really think City or Chelsea would be able to function without the millions pumped into the company annually by their owners?

There are solutions, the management just have to be smart about it. The fact that none of Milan's money comes directly from Silvio is also another point, since everything goes through Fininvest

Posted by: Rossoneri7 Jun 14 2012, 09:38 PM

QUOTE (han2503 @ Jun 14 2012, 10:33 PM) *
I don't believe for one second that UEFA will start expelling their money making clubs out of the competition. Chelsea, City, Man U. You really think City or Chelsea would be able to function without the millions pumped into the company annually by their owners?

There are solutions, the management just have to be smart about it. The fact that none of Milan's money comes directly from Silvio is also another point, since everything goes through Fininvest


Fininvest, believe it or not would sell Milan if it got the chance. Its all Silvio that Milan is part of this mega empire. Even if we assumed Fininvest would sign a sponsorship deal with Milan it would have to be at market value; our biggest sponsor is adidas at 13MM, hence that is the bench mark.

You dont want to believe that the FFP of UEFA is taking affect? Whatever helps you sleep at night I guess.

But its inevitable that we will be downgraded for at least 3 seasons. Despite this bit of comfort http://www.acmilan.com/en/news/show/141901.


For Milan fans, all of us, this is a hard pill to swallow .. But it is our fate, I just hope the management is shrewd enough to steer us in the right direction.

Posted by: Rossoneri7 Jun 14 2012, 09:50 PM

QUOTE (Zed.D @ Jun 14 2012, 09:29 PM) *
OK, I understand the club needs to sell, what I don't understand is why Silva when there's Zlatan and Robinho? the guy's now on the wrong side of 30, earns WAY too much for a club in a shitty financial state like Milan, and I don't think technically he is as irreplaceable as Silva. as for Robinho, there's El Sha. I mean if we're so screwed then we have no choice but to finally give our youth the right time to grow into first team material. and we all can agree El Sha is talented enough to do that.


I agree with you 100%, Zlatan and Robinho would do. But unfortunately, no club has presented an offer for them that matched our management's assessments I guess. The offer came in from PSG's new Qatari owners, now the only way Milan would say no to the offer is by raising Silva's salary. There is the problem. Cause if they raise it for Silva, they will have to raise it for others. Especially after the salary cap became strict policy in Milan.


Posted by: Jack Sparrow Jul 9 2012, 01:12 PM

Here you go: the brand equity study for Milan. The good news, we're top 10 in the world.

http://www.brandfinance.com/images/upload/brandfinance_football_brands_2012.pdf

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