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Milan Financials, ...originally posted on Rossoneri Blog |
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May 10 2012, 12:49 PM
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Loves Greek Women esp Fay

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Yes...and look how wonderfully that has worked for Arsenal. (IMG: style_emoticons/default/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...
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May 10 2012, 02:22 PM
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Berretti
         
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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. (IMG: style_emoticons/default/huh.gif) (IMG: style_emoticons/default/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. (IMG: style_emoticons/default/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.
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May 11 2012, 10:31 AM
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Loves Greek Women esp Fay

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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. (IMG: style_emoticons/default/unsure.gif)
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May 11 2012, 11:52 AM
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Berretti
         
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Serious investment, love it, love it. (IMG: style_emoticons/default/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. (IMG: style_emoticons/default/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.
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May 11 2012, 12:03 PM
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Berretti
         
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Well I just think the most pressing matter is a creative AM. (IMG: style_emoticons/default/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.
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May 21 2012, 01:42 PM
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Loves Greek Women esp Fay

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New article on Milan finances: €255.9 million reasons why Berlusconi is not stingyQUOTE 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.
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Jun 13 2012, 11:23 AM
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Primavera

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I'll be interested to read a new financial report and a proper opinion on what the heck's been going on at Milan.
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Jun 14 2012, 03:50 PM
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Smoking Bianco
         
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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.
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Jun 14 2012, 04:21 PM
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Prima Squadra

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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.
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Jun 14 2012, 04:52 PM
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Smoking Bianco
         
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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.
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Jun 14 2012, 08:33 PM
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Prima Squadra

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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
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