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AC Milan - Milanfan.com > AC Milan > News > Archive 07/08
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m1ke
QUOTE
Milan Vice-President Adriano Galliani has today spoken to shareholders, revealing the Via Turati club to be £24m in the red.

The 63-year old who, since Silvio Berlusconi stepped down earlier this week, has taken the role of President in all but name, moved to reassure the Rossoneri's worried investors.

“To get the books back in order it would be enough to sell Kaka to Real Madrid for £55m,” remarked Galliani to the consternation of Milan's money men.

Shareholders are believed to be angry at the club's recent form on the pitch and in the transfer market.

According to a report in Italian newspaper La Stampa, some investors are unwilling to contribute money to this summer's transfer budget.

Galliani refused to accept all the blame, insisting that they were just as responsible for the Diavolo's current troubles.

“Last year they begged me to renew Dida's contract and adhere to the requests of Emerson, Cafu, Serginho and Favalli.”

Milan have been labelled an old side of late and criticised for not investing enough in young talent, Alexandre Pato aside.

But Galliani defended the Rossoneri's policy, saying: “Footballers are like cars, their condition changes year on year.”

The Diavolo have recently been heavily linked with troubled Barcelona forward Ronaldinho. The 28-year-old has been in limbo this year, but Galliani believes he can get back to his best.

“At the moment he reminds me of when he was at Paris Saint-Germain in 2003. I don't think he'd have a problem playing in the UEFA Cup either. Luca Toni has for Bayern Munich.”
m1ke
Hmm.

A loss of £24m is pretty large considering we haven't exactly been active in the transfer market. I'm not really sure what this all means - the article isn't very clear. I'm guessing it's the loss for the 07/08 season.

If it is, it will only confirm the fans opinion that going after the World Club Cup was not a good move (in economic terms anyway). If we miss out on the CL next season, I'd hate to see how much we'd lose then!
Portman
When you've an old squad with some "old-legends" of the game earning zillions and playing shite with no motivation or always injuried this happens.

I'm not surprised.
m1ke
Don't hold back Porty. Tell us how you really feel wink.gif
Tennie
The actual financials are supposedly going to be posted on Fininvest's website in coming days. I'm curious to take a peek at them.
redbabies
If these losses are from 2007 year, then I have doubts they're correct.

We didn't spend much, and we won C.L. ... maybe there weren't many tickets bought during the year.

And if we had losses until now.... next year if we miss C.L. we can only go worse and become a selling club during the summer and sign only free-transfer players. rolleyes.gif
redbabies
QUOTE
“To get the books back in order it would be enough to sell Kaka to Real Madrid for £55m,” remarked Galliani to the consternation of Milan's money men.


pretty 'smart' (joke) solution! cool.gif

QUOTE
“Last year they begged me to renew Dida's contract and adhere to the requests of Emerson, Cafu, Serginho and Favalli.”


You see, I always knew Galliani wanted Buffon. He was only 'forced' to renew Dida's contract. laugh.gif
han2503
How can we even be in the red when we haven't spent any decent money in years? (aside from Pato that is)

as porty said, solution is simple, get rid of the guys who aren't even of any worth to Milan that are being paid ridiculous ammounts of money for being either constantly on the bench or on the treatment table.

And if he were really to sell Kaka, I would pay to see the tifosi go after him with forks and fire.
Portman
QUOTE (Tennie @ Apr 25 2008, 03:00 PM)
The actual financials are supposedly going to be posted on Fininvest's website in coming days. I'm curious to take a peek at them.
*

Yay me too.
fahad
oh doesent silvio has most of the shares ( i tought he had the whole club) does anyone know what is thepercentage of investors
Devillito
QUOTE (han2503 @ Apr 25 2008, 10:18 PM)
get rid of the guys who aren't even of any worth to Milan that are being paid ridiculous ammounts of money for being either constantly on the bench or on the treatment table.


Agreed.
I knew Emerson earn a handsome pay but who else earn that blood money?
Brocchi?Favalli? unsure.gif
Tennie
The budget is for calendar year 2007, fyi. Detailed financials still aren't up but one significant unbudgeted expense that happened in 2007 was the necessity to pay for half of the security upgrades around the San Siro after the Catania riots. The city of Milan owns the stadium, but the clubs paid for the upgrade.
I_Rossoneri
Further proof, if needed, that Galliani should step down and let someone younger(Leonardo cool.gif ) take charge.
I_Rossoneri
QUOTE (Tennie @ Apr 25 2008, 02:59 PM)
The budget is for calendar year 2007, fyi. Detailed financials still aren't up but one significant unbudgeted expense that happened in 2007 was the necessity to pay for half of the security upgrades around the San Siro after the Catania riots. The city of Milan owns the stadium, but the clubs paid for the upgrade.
*


surely the upgrades weren't that much? And the bill should have been shared between the merde and us making it smaller.
Tennie
Well, they had to do emergency temporary upgrades so the respective clubs' Euro games could happen (CL quarters). Then they put in the permanent stuff over time. I'd estimate the total cost (and I could be WAY off) at somewhere around 20-25 million euros, half of which'd be Milan's. That's a significant part of the deficit (though I'm very curious to see what the rest is).
dst
This must be a joke! rolleyes.gif

YOU WON'T GROW HAIR GALLIANI, STOP SPENDING MILAN'S MONEY!!!
I_Rossoneri
I thought Galliani said that we were the only club in Italy in the black not so long ago?

Not like we've overspent on players, is it? smile.gif
Bluesummers
lol what a joke. Every club has some debt. Especially after the changes to the stadium and our poor attendance dont be surprised. But its only 24 laugh.gif ! Most epl teams have over 100 defecit. Liverpool 350! with the new stadium coming over 700 million pounds defecit!!!!!!!!!!! laugh.gif laugh.gif
Zed.D
Galliani is a joke. why so serious?!
kurtsimonw
It's not that it's a debt though is it?

How I understand it we've lost 24m this season. When you consider all the gate receipts, shirt sales, sponsors, etc. You'd think that was way more than enough to pay for our squad and the few players we bought in. Even if you include the stadium things, there's no way we should have lost money this season!
han2503
QUOTE (dst @ Apr 25 2008, 04:29 PM)
This must be a joke! rolleyes.gif

YOU WON'T GROW HAIR GALLIANI, STOP SPENDING MILAN'S MONEY!!!
*

laugh.gif laugh.gif laugh.gif

I see Ronaldo's miracle grow is not working on him
Jack Sparrow
I'm really stunned you guys find this a joke and think he's lying. You see this is not some transfer he can bluff about. These are actual financials he needs to explain to the investors.

So basically we're saying with the 50 mill euro we won on CL...we still recorded a 24 mill loss.

And that is inspite of us not buying huge players. If I remember correctly the stadium issue was settled with us paying more than the merda. And I think it was more that 25 mill. It was closer to 35 or 40 was what I heard. Since it had to be done in double quick time.

Let's not forget Milanello is not cheap to maintain. And player's salaries are really a pittance compared to what their English counterparts earn. We saw the salaries earlier.


And @Bluesummers: Don't read too much into the deficit. What's different in the English club's case, is that they can claim their stadiums as an asset. Milan can't. So essentially we're 700 mill euros less. tongue.gif

As I see it the possible reasons could be:

1. Lesser TV and stadium revenue.
2. This might sounds funny....but I suspect the taxes being levied on the club might be expensive.


Now the reason, this is being made a huge hue and cry of unlike in the case of Inter is, if rumours are correct, the club genuinely wants to be free of Berlusconi's financial support within the next 10 years. So it is essential to bring in new investors. If Abramovich or Moratti were to go bankrupt, their respective clubs are doomed.

In a sense Milan would be hit, but not too badly.

I have no doubt, that the other Italian clubs though namely Inter and Roma and Juve are doing much worse. Though Juve did earn a pretty dime, selling a lot of their players.
Habitant
QUOTE (Bluesummers @ Apr 25 2008, 05:47 PM)
lol what a joke.  Every club has some debt.  Especially after the changes to the stadium and our poor attendance dont be surprised.  But its only 24 laugh.gif !  Most epl teams have over 100 defecit.  Liverpool 350!  with the new stadium coming over 700 million pounds defecit!!!!!!!!!!!    laugh.gif  laugh.gif
*

theres a difference in dept and loss. while liverpool have spent a lot recently threy probably made a lot more more income than we did last year. and the money you put in a stadium doesnt disappear, it remains an asset.
I_Rossoneri
I don't believe Galliani at all, the man is a compulsive liar. One minute we're in the black and he has worked miracles, the next we're in the red by £24m and he's blaming all and sundry for extending dodo, Cafu, Seghino and signing Favalli and Emerson rolleyes.gif. Thing is, I can't think of anyone but Galliani who wanted all these moves, and IIRC he was proud of himself after these moves. It's time for change IMO get someone in with balls, balls to say what we need and balls to stand up for his opinion - IMO Galliani hasn't got balls smile.gif
Portman
Man Utd's debt is around 1B euros. So what? biggrin.gif
Zed.D
QUOTE (Porty @ Apr 26 2008, 12:06 AM)
Man Utd's debt is around 1B euros. So what?  biggrin.gif
*

It's all alibis wink.gif he's preparing us for a dreadful transfer window...
Locke Lamora
QUOTE (zdrossoneri @ Apr 25 2008, 09:40 PM)
It's all alibis  wink.gif he's preparing us for a dreadful transfer window...
*



Sheringham, anyone?
Tennie
Hm. 11 million of the 31 million euro loss, supposedly, is due to new business taxes in Italy. (a new fiscal tax law passed in 2007)
acid911
QUOTE (kurtsimonw @ Apr 25 2008, 10:58 PM)
How I understand it we've lost 24m this season.
*

How I do is, maybe it's our running balance, which is 24m in red. Last year we posted a profit of 1 million which was divided between the share holders. This has nothing to do with our balance, which was probably still in red, and has been for some years. What this means is that if all the shareholders were to withdraw all their money, Milan would be short by 24 million pounds. This isn't as bad as it sounds, though we'll need to see the complete balance sheet and statements up till the current fiscal year for all this to matter. We don't know how much money is in reserve, and how much is set aside for transfers. unsure.gif

It could have been much worse. Juventus is still short of millions, and last I heard, Inter's debt was swelling over 200 million nuggets. laugh.gif So basically, we're running lose for some change, and if this year's figures are posted, I reckon shareholders would suffer a loss for a few cents, for each share they own. No wonder, they're not up for throwing in new financing for buying new players. And honestly, I don't blame them.

QUOTE (Porty @ Apr 26 2008, 01:36 AM)
Man Utd's debt is around 1B euros. So what?
*

Michael Jackson's is at 300 million. laugh.gif Frankly, it doesn't matter much for someone or something that's famous. They always do find a way. It's the average Joe that suffers.
MizNelson
Christ, if there's anyone in the Milan organization who needs a gag order (or a gag just stuffed into his mouth), it's Galliani. I swear, some of the things that leave his lips.
Bluesummers
i'm not worried one bit. Silvo is still the owner of this club. 24 million is like pocket change to him. Its a shame though that he likes to keep his pockets full.
Devillito
I think it is impossible for Milan to make that 24mil deficit after winning the champions league and the CWC. We also didnt spend so much in transfer market but like Jack said, you cannot cheat the facts and figures. But, is it possible that Milan fake their books in order to pay lower taxes? And if it's really happen, rest assured because Berlusconi is the richest man so... wink.gif
Il Capitano
This is BS, we should be +24 million.

Maybe some of the money went to Don Sylvios campaign king.gif
Bluesummers
i dont understand why the press is making such a big deal. LOok at goal.com they are saying were gonna sell kaka now because of 24 mil debt laugh.gif Debt is the last issue in our list of problems. This is a joke that galliani has made to entertain the press. They probably asked him what would be the fastest and most effiecient way to get rid of the debt and ofcourse galliani being the completeo moron that he is states well we could sell kaka and our debt would be over not knowing the mass confusion that it would create.
fahad
exactly goal.com article is very irritating now we mite hear some real-kaka again in coming days... Gallini has to clear this thing which he has said abt kaka
dst
Galliani said that we could sell Kaka!?!?! He probably only did it to reassure the investors that we're not in trouble but still... it's frightening!

The thing is, this is all bullshit!! We should NOT be in debt! There's no way we can be in dept when we only made a costly signing!

A CL victory brings to a team close to E80m with all the extra money from the sponsors, UEFA, merchandise sold all over the world,...

WHERE THE **** HAS ALL THIS GONE!?!? We would have to be at point zero before and still we would have to spend 104 millions to where we are...

It's just not logical! I can't say I'm afraid (and that's cause of Berlusconi) but... I am worried and waiting for a ****ing financial report that explains what's going on!
redbabies
If Galliani wouldn't be employed in Milan, he would probably run a comedy TV show.
Rossoneri7
QUOTE (kurtsimonw @ Apr 25 2008, 08:58 PM)
It's not that it's a debt though is it?

How I understand it we've lost 24m this season. When you consider all the gate receipts, shirt sales, sponsors, etc. You'd think that was way more than enough to pay for our squad and the few players we bought in.  Even if you include the stadium things, there's no way we should have lost money this season!
*


How is that ?

QUOTE (fahad @ Apr 25 2008, 05:47 PM)
oh doesent silvio has most of the shares ( i tought he had the whole club) does anyone know what is thepercentage  of investors
*


Yes, Fininvest owns AC Milan club. But like any venture, there has to be investors (mind you these are people who joined Fininvest since 1986). But Silvio has the bigger stake and AC Milan isn't listen in the Italian borsa, rather a part of Fininvests assets.

QUOTE (acid911 @ Apr 26 2008, 12:53 AM)
How I do is, maybe it's our running balance, which is 24m in red. Last year we posted a profit of 1 million which was divided between the share holders. This has nothing to do with our balance, which was probably still in red, and has been for some years. What this means is that if all the shareholders were to withdraw all their money, Milan would be short by 24 million pounds. This isn't as bad as it sounds, though we'll need to see the complete balance sheet and statements up till the current fiscal year for all this to matter. We don't know how much money is in reserve, and how much is set aside for transfers. unsure.gif

It could have been much worse. Juventus is still short of millions, and last I heard, Inter's debt was swelling over 200 million nuggets. laugh.gif So basically, we're running lose for some change, and if this year's figures are posted, I reckon shareholders would suffer a loss for a few cents, for each share they own. No wonder, they're not up for throwing in new financing for buying new players. And honestly, I don't blame them.
Michael Jackson's is at 300 million. laugh.gif Frankly, it doesn't matter much for someone or something that's famous. They always do find a way. It's the average Joe that suffers.
*


True ... But then again, where are all these numbers coming from blink.gif

The club has a debt of around 20M ... It's normal, cuz of several things .. Milan has contracts with sponsors. These sponsors pay bonuses when their partners reach a CL semifinal or final, when their partner is competing for 1st place, etc ... Hence there are other factors that we are not familiar with.
pacang
i like this one.. “Footballers are like cars, their condition changes year on year.”

hmm.. cars need overhaul right? or just apply for MTV's pimp my ride..

but i think if kaka's a car he would be DB9 tho..
kurtsimonw
QUOTE (Rossoneri7 @ Apr 26 2008, 12:52 PM)
How is that ?
*

What exactly have we done to lose money?
Rossoneri7
QUOTE (kurtsimonw @ Apr 29 2008, 06:58 PM)
What exactly have we done to lose money?
*


Why do you have all of the fiscal data ?
kurtsimonw
QUOTE (Rossoneri7 @ Apr 29 2008, 04:33 PM)
Why do you have all of the fiscal data ?
*

If I did, why would I ask you what we did to lose money?
Rossoneri7
QUOTE (kurtsimonw @ Apr 29 2008, 08:29 PM)
If I did, why would I ask you what we did to lose money?
*



Then why did you claim:

QUOTE (kurtsimonw @ Apr 25 2008, 08:58 PM)
there's no way we should have lost money this season!
*


.. If you didn't have any data to base it on ?
kurtsimonw
On the basis that we didn't spend much on players, that we won the European Cup last year?
Rossoneri7
QUOTE (kurtsimonw @ Apr 29 2008, 08:41 PM)
On the basis that we didn't spend much on players, that we won the European Cup last year?
*


fair enough smile.gif

But still, there has to be financial statements to explain what happened. I mean, a transfer budget and a bonus for winning a competition doesn't necessarily predict what the outcome of your projected profit or loss might be. There are many factors that come into it, that us outsiders have no idea about. For example maintenance in the training center, MilanLab, etc these are all under the Milan payroll.


I tried to get the data last year from Fininvest, but they didn't reply. Tennie is going to try and get it from them this time around, so only then can we understand what is going on.
kurtsimonw
That would be good if Tennie could get hold of something, would be interesting to see what's actually happened. Afterall there has to be a reason for it.
Tennie
(I'd rather get hold of Nesta than the financial statements, but....)
misha
QUOTE (Tennie @ Apr 29 2008, 09:02 PM)
(I'd rather get hold of Nesta than the financial statements, but....)

QUOTE (pacang @ Apr 29 2008, 06:43 PM)
wow.. i just learned sumthin new, "IF YOU CAN'T REACH IT, FANTASIZE IT..."
Rossoneri7
QUOTE (Tennie @ Apr 29 2008, 09:02 PM)
(I'd rather get hold of Nesta than the financial statements, but....)
*


U get me the financial statement and I'll get you ....... Jack biggrin.gif
Jack Sparrow
QUOTE (Rossoneri7 @ Apr 30 2008, 04:03 AM)
U get me the financial statement and I'll get you ....... Jack biggrin.gif
*


Naked holding an apple in my mouth. biggrin.gif

Puhleeeeze 10ster, get us the financials. I heard they were up for download somewhere on the site. Pretty Puhleeeeze!

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