Yahoo Sports CF: Milan expected to post an increased profit for 2023-24 – the breakdown
AC Milan are expected to close yet another financial year with a profit, according to a report, as the club’s financial health continues to improve.
As Calcio e Finanza reports, Milan registered a €6.1m profit in 2022-23 and they are expected to close 2023-24 with a profit between €10m and €20m as the key numbers continue to trend in the right direction.
The turnover – according to estimates – should be between €435-440m, an increase of over €30m compared to last season and including over €56m in revenue from the management of players’ rights (of which almost €52m were in capital gains, mainly relating to the sale of Sandro Tonali to Newcastle).
In particular, the growth in commercial revenues will push up the revenues, with the new contracts with PUMA and Emirates – worth around €30m per season each – coming into effect. Stadium revenues are slightly down after a premature elimination from the Champions League.
Overall, revenues from television rights were estimated at almost €138m, of which over €83m from Serie A and over €54m from UEFA. In the 2022-23 season, the figure amounted to just under €175m.
Returning to San Siro, Milan played an almost identical number of matches (46 in 2023-24 against 45 in 2022-23), but the presence of matches such as the derby with Inter in the Champions League semi-final in 2022-23 meant that stadium revenues were around €10m lower last season, with an estimate of around €63m.
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From a cost perspective, expenses are also estimated to increase compared to the 2022-23 season. In particular, according to estimates, there are higher depreciations due to signings like Christian Pulisic, Samuel Chukwueze, Noah Okafor, Ruben Loftus-Cheek, Yunus Musah and Tijjani Rejinders.
Staff costs, on the other hand, are substantially stable and should be around €167m. Overall, the final figure on costs should reach a figure between €410-415m, with a difference between the value of production and costs of approximately €25m.
As the club’s top management has stressed on several occasions, the profit will then be reinvested on this occasion to further improve the squad, led next season by the new coach Paulo Fonseca.
In addition to the process for the construction of the new stadium in San Donato Milanese, which has already involved payments of €40m (according to official data from the 2022-23 budget), Milan will also be able to launch the second team project which costs €12m per year.
