Milan’s financial situation and outlook positive compared to rivals

AC Milan’s financial situation is among the healthiest in Serie A thanks to the fact they made a profit last season, but there is still a looming loan to be repaid.

As they do each year, La Gazzetta dello Sport (via Calciomercato.com) have drawn up a report that assesses the economic situation of Italian sides including debts, revenues, bonds and loans to be repaid.

Milan: The Rossoneri are much better off than their two biggest rivals, having closed with a profit for the first time since 2006 in the 2022-23 season.

They are expected to remain in the black thanks to player trading and growing revenues for 2023-24, but RedBird Capital must repay the €550m vendor loan to Elliott Management.

Moreover, the paper adds that from 2020 to 2023 commercial revenues tripled and the net financial position is very positive.

Inter: The Nerazzurri’s accounts are improving significantly compared to the record losses of 2021, with the biggest doubt remaining to be fixed which are the bonds issued by the ownership, bought by Oaktree and needing repaying.

The cost-income ratio at the Nerazzurri is improving and by a lot compared to 2021 where the losses hit €245m. All match revenue items (stadium and TV) are growing and the decline in wages and amortisation helps management.

The debt as of 20 June 2023 was €437m, but as mentioned it is the €350m (including interest) to be repaid to Oaktree at the end of May 2024 that is causing a lot of worry.

Juventus: It is the same critical situation also for Juve with their majority shareholder Exor having to commit to a new capital increase, the third since 2019. The balance sheet as of 30 June 2024 is expected to show a large loss.

The third capital increase since 2019 has made the owners turn up their noses with the aggregate debt of the last five years reaching €722m.

Ferrero and Scanavino have imposed reductions in wages and amortization and the trend will continue for the next few years too with the balance sheet as of 30 June 2024 still expected to be in the red.

Napoli: The season of the Scudetto win was also that of the record profit of €79.7m, in contrast with the three previous negative years. Player trading and the collapse of the wage bill were fundamental (farewells of Mertens and Insigne above all).

The boom in revenues – especially in terms of merchandising – allowed the club not to use the €50m loan granted by Unicredit. The balance sheet as of 30 June 2024 will also be a profit thanks to Champions League revenues and capital gains.

Roma: The Giallorossi’s accounts have improved a lot compared to 2021, but the economic contribution of the owners was fundamental and necessary.

As of 30 June 2023, the most promising data is the revenues from the stadium and player trading with a large cut in the wage bill. An improvement is also expected for the 2023-24 season, but the financial debt is negative by €448m (€130m without social loans).

Lazio: They recorded a fifth loss-making balance sheet in a row with (-€29.5m), with the amount of wages having gone up and the amortisation rate remaining very high compared to just five years ago.

However, budget that will close on 30 June 2024 will return to profit thanks to the Champions League revenues and the sale of Sergej Milinkovic Savic.

Atalanta: La Dea have now had seven consecutive profit-making seasons and in the last one a +€5.6m was recorded. As always, a player trading of +€83.5m has an impact and the next budget appears to be around break even.