I have just gotten Milan's financial statement for the fiscal years of 2003 and 2004.

Note: The 'M' represents '000. double 'MM' refers to millions


In Milan's top line - revenue - reads $323MM and $266MM, in 2004 and 2003 respectively. When compared to competitors:

- Roma: $165MM
- Inter Milan: $264MM
- Juventus: $252MM

Milan had the highest revenue along the industry average.

Gross profit margin - after cutting costs from the revenue - was at 20% in 2004, an improvement of 18% from last year.
Operating income remains at a loss at $(47MM) and $(83MM) in 2004 and 2003 respectively. It is important to note though that management had cut costs which in most part contributed to the decline in losses.

Yet the net income - the chunk that Milan ends up with at the end of the year - shows a loss for the second year in a row $(39MM).


Expenses on Milan as of Dec. 31 2004 are:

- Cost of goods sold $260MM
- selling & administrative expense (player salaries included) $110MM
- Depreciation & Amortization $68MM
- Income taxes $3MM


Important Ratios:

- Debt ratio 194%
- Current ratio 0.63
- Long-term debt $125MM

Though the debt ratio is relatively high, it is mainly burdened on the long-term debt. For which Milan have the personal guarantee of Silvio Berlusconi.
A current ratio of 0.63 - is that Milan can cover 60% of its current liabilities after selling current assets - Not favorable for investors, but is acceptable considering the industry average.


Summary:

Milan has the highest turnover in Serie A on 2004.
Gross profit margin had increased by 18%, standing at 20% in 2004.
Milan made losses in both 2003 and 2004; an average of $(35MM).
Decline in costs for the year ended 2004 from the previous year was because of management efforts in cutting back on costs.

Considering these are old financials, and the fact that Italy is in a recession - global financial crisis 2008 - it could be 'assumed' that Milan along with the top teams have rather ugly financials. Yet the top three of Milan, merda and Juventus can rest to the comfort of their guarantors and investors to keep their respective clubs afloat. In the current time considering the global financial crisis, most of the clubs are settling back their debt on demand by their banks, considering many of them are failing. This means that Serie A teams are going to be lesser in debt when the current economic times have passed us by.



Please note this is an adobe sample copy of AC Milan's financials and that I will be receiving the original full copy by mail. By then I hope to have the details to explain more, in terms of a break down of Milan's assets and liabilities, as well as their cash flow. Source of the financials is a study done on Milan A.C. by Hoover's Inc. -based in Texas

any chance of latest statments

working on it CMF .. If Mr. Massimo Campioli - financial manager of Milan ever reply's to my letter.

Thanks for posting R7, very interesting, though it's disappointing! The scary thing is, as you said, you wuold assume that the situation would be worse for more recent years.

Awesome thread. Can't wait to find out more financial details.

I'm not that scared. We're secure I hope. And I'm in hope that this will finally put an end to all the mega-transfer jobs...

I'm sure Mr.Beckham's arrival will put a few extra coffers in the bank...not that i'm being cynical or anything

At least that. Cause from the 2 or 3 months that he'll be playing (or sitting...or being injured) for us...well, I don't expact much more.

Maybe he'll prove you wrong? Anything can happen in football!