While the roar of the crowd often dictates a football club`s narrative, a quieter, yet equally significant story has been unfolding behind the scenes at AC Milan. In a historic first, the legendary Rossoneri have now achieved three consecutive profitable years, a remarkable feat that underscores a profound financial transformation.
A Decade of Ups and Downs, Now Upwards
For a club synonymous with European glory and captivating football, AC Milan`s recent financial journey has been as compelling as any on-field drama, albeit with fewer last-minute winners. The board of directors recently approved a consolidated financial statement for the fiscal year ending June 30, revealing a net profit of €3 million. This figure, though modest in isolation, is the third consecutive year in the black, following profits of €6 million and €4 million in the preceding years. To truly appreciate this achievement, one need only glance back at the significant losses of €195 million in 2019-20 and €66 million in 2021-22.
This sustained period of profitability marks an unprecedented era in AC Milan`s long and storied history. It signals a shift from a club often teetering on the edge of financial instability to one building a robust economic foundation.
Record Revenues and Growing Equity: The Pillars of Prosperity
Beyond the net profit, other indicators paint an even more vibrant picture of financial health. The club announced a new absolute record for revenues, reaching an astounding €495 million. This represents a substantial 10% increase compared to the 2023-24 fiscal year and includes vital contributions from player trading.
Furthermore, the club`s net equity has also seen a healthy rise, moving from €196.3 million to €199 million. This strengthened equity position provides a crucial buffer, allowing ownership to navigate seasons without the lucrative proceeds from UEFA competitions – such as the current one – with greater confidence.
The Player Trading Paradox: Selling to Prosper?
It`s an undeniable truth in modern football that player trading can significantly influence a club`s balance sheet. AC Milan is no exception. The financial report acknowledges that the sale of key players, notably Tijjani Reijnders, played a considerable role in achieving the latest profit margin. One might even muse that the board`s accountants likely cheered louder for a transfer fee than a late equalizer on the pitch.
This dynamic presents a delicate balancing act. While selling talent contributes to financial stability, it often clashes with fan desires for squad reinforcement and competitive prowess. The art of modern football management increasingly involves leveraging player assets effectively to fund long-term strategic goals.
Investing in Tomorrow: From Pitch to Infrastructure
AC Milan`s financial success isn`t simply being hoarded; it`s being strategically reinvested. The club emphasizes that profits are being prioritized for the sporting project. Over the last two fiscal years, more than €250 million has been invested in players, demonstrating a commitment to on-field performance, even if the immediate results haven`t always satisfied every supporter.
Crucially, the club is also looking far beyond the current squad. Significant investments are being made in:
- Milan Futuro: A long-term development model aimed at nurturing future talent.
- Stadium Projects: An ambitious vision that includes a new San Siro and the acquisition and development of land in San Donato, with over €40 million already allocated. This forward-looking approach seeks to enhance matchday revenues and create a modern, sustainable home for the club, collaborating with local authorities to revitalize surrounding areas.
RedBird`s Long-Term Vision: A Global Playbook
Under the ownership of RedBird Capital Partners, AC Milan`s trajectory is clearly defined by a long-term vision. The focus is on accelerating the club`s growth by harnessing global expertise and partnerships. This isn`t just about winning trophies next season; it`s about building a robust, internationally recognized sports enterprise that can consistently compete at the highest levels, both on and off the field.
In an era where financial sustainability is as crucial as sporting success, AC Milan`s latest balance sheet offers a refreshing narrative. The Rossoneri are not merely surviving; they are prospering, laying down a solid financial groundwork for a future they hope will once again be adorned with silverware. For now, the accountants in Milanello are certainly smiling, perhaps just as broadly as the fans hope to be next season.