AC Milan is facing a projected loss of approximately €25 million for the 2025/26 financial year, a real downturn from the €2.9 million profit recorded the previous year. This financial setback is attributed primarily to the club’s second consecutive season without Champions League football, leading to a sharp decrease in revenues.
According to estimates from Calcio e Finanza, reported by CalcioMercato, the club’s total revenues have plummeted from nearly €500 million to around €433 million. The most real drop has been in broadcast income, which has dropped by 42%, alongside a 17.6% reduction in matchday revenue, both consequences of not participating in European competitions.
Declining Revenue and Its Impact on AC Milan
Milan’s revenue decline highlights the critical financial impact of missing out on Champions League opportunities. The club’s annual turnover has taken a hit from broadcast rights, while matchday earnings have greatly decreased due to the lack of European fixtures. However, commercial income has seen a slight increase of 5.9%, thanks in part to a renewed partnership with main sponsor Emirates.
Player Trading Comes to the Forefront
Despite the financial turbulence, player trading has provided some respite, contributing approximately €100 million to the accounts—up from €83.2 million the previous year. Notable transfers included the sales of players such as Theo Hernández and Malick Thiaw, a level of trading that the club may need to replicate going forward as they navigate another season away from European football.
Compensation Costs Weigh on Financial Figures
Milan also faces additional financial pressure from the need to allocate around €13 million to cover costs related to the severance of former chief executive Giorgio Furlani and sporting director Igli Tare. In contrast to this, Massimiliano Allegri reached an agreement for a contract termination that does not impact the club’s finances.
Future Prospects and Financial Stability
Although the projected loss is concerning, it is deemed sustainable, with a positive net equity of €199 million allowing for the absorption of the deficit. A forthcoming positive development includes the acquisition of the San Siro stadium and surrounding land, which will eliminate an annual rental expense of about €5 million and is expected to enhance future matchday revenues.
The SportiveNews view
The current financial outlook for AC Milan underscores the challenges faced without Champions League football. The club must strategically manage player trading and its operational costs while aiming to strengthen revenue streams. The ownership of San Siro presents a potential opportunity, but Milan needs to return to European competition to truly stabilise its finances.
Frequently asked questions
What financial losses is AC Milan facing?
AC Milan is projected to report a €25 million loss for the 2025/26 financial year, a stark contrast to the €2.9 million profit from the previous year, primarily due to missing out on Champions League qualification.
How have player transfers influenced the club’s finances?
Player trading has contributed greatly to AC Milan’s finances, reaching around €100 million, which is roughly a quarter of the club’s total revenues, up from €83.2 million the prior year. The sales of players like Theo Hernández and Malick Thiaw have impacted the figures this season.
What are the future financial implications for AC Milan?
While the projected loss poses immediate concerns, AC Milan’s financial situation is considered sustainable due to positive net equity of €199 million. Furthermore, owning the San Siro ought to improve future matchday revenues by removing the annual rent liability.
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