The Milan board of directors approved the balance sheets for the 2020-2021 season yesterday. It registered a €98M loss, although it was cut in half compared to the previous campaign. The revenue increased by €17M. The club estimated a €55M deficit due to the lingering effects of the pandemic. The debts amount to €102M, €31.3M less than last year.
Gordon Singer, the son of the head of the Elliott fund, entered the board. Ownership poured €129.5M into the side to make up for the losses. They invested €560M since taking over Milan from Li Yonghong, plus a €180M loan to the previous president.
The payroll decreased slightly, from €140 to €136M. On the topic, CEO Ivan Gazidis warned that Milan would continue to be disciplined on salaries: “The extensions are never easy decisions. Clubs now operate in a more responsible fashion than in the past financially speaking. On the other hand, players and agents act as if COVID never existed. They have to leave on free transfers to get the wages they are looking for.”
The words of the top executive to the shareholders were transcribed by SportMediaset: “We will keep making choices having the best interest of the team in mind. We aim to remain competitive in Serie A and Europe. But we can not disregard the economic sustainability.” Milan are primarily negotiating the contracts of Franck Kessié and Alessio Romagnoli, as their current ones are up in June 2022. It does not appear the Rossoneri will budge from their positions.