“With RedBird a new phase opens” – Corriere.it

“A new phase for Milan, after what we could call the reorganization.” So the president Paolo Scaroni in the shareholders’ meeting he baptized the approval of the 2021/2022 financial statements of the Rossoneri club. One way to explain two things: the process of putting the accounts in order (even if the financial statements still close with a loss of 66.5 million euros, it is a figure in clear improvement compared to the previous year, closed at – 96.4, with a reduction in losses of over 30%, moreover many indicators are positive, such as the Ebitda at +29.3 million, and above all Milan is a club without debts); the contribution still to be discovered that the new shareholders of RedBird they can lead to Milan in the future. «We are fortunate to have a shareholder who has specific sports skills and experience, starting of course with Chairman Gerry Cardinale, who is then supported by a team of 7-8 people. We are sure that they will be able to make these skills available to the great benefit of Milan both as international alliances and as revenues ». The approach is prudent, the goal very ambitious: “For now they want to learn how Italian football works, they have put themselves into an attitude of listening – explains CEO Ivan Gazidis who, regarding his stay after the expiry of the contract, has said “I will talk about it calmly with RedBird, but every winning group works if it is solid and works as a team regardless of the individual” -, but I am convinced that the arrival of RedBird will not only change Milan, but all of Italian football“.

Growth

The goal, of course, is to grow, to recover the disadvantage that separates the individual clubs and the entire movement as a whole from the richest league, the Premier. To increase revenues, the owned stadium will be mandatory, continue to grow in terms of sponsors (the announcement of the renewal of the sponsorship of Emirates will arrive soon) but system-wide growth is needed in the field of TV rights. «When we read that the last of the English championship has collected more than the first of the Serie A, we understand all the distance that remains to be bridged. This is the work we are trying to carry out in the League », continues Scaroni, where we will soon talk about the entry of funds. The new Minister of Sport, Andrea Abodi, can be an interlocutor. «Having someone who has professional sport in mind rather than amateur sport, I consider it a very positive thing. We as Serie A are convinced to keep the entire Italian football machine up and running, not with a few problems. We have already done something on TV rights with the Melandri derogation for international rights, we would like to do it also at national level. Having someone who listens to us is a significant step forward »with reference to the recent appointment of Andrea Abodi.

New stadium

As for the stadium, as we know, the public debate is underway. «A procedure applied very rarely – explained Scaroni in the assembly -. I also intervened, we are explaining the project. I hope to have a positive response in the first days of November. If it is positive, I hope that the TAR will look at the appeals in a more benevolent way. In parallel we do not give up on seeing anyway other alternatives, which can always be with Inter or even alone, we will see“.

Breakeven goal

Returning to the accounts of Milan, it is unlikely that the budget will be balanced with the current financial year. “But it remains an objective that we will have to achieve. For the moment I think that the positive Ebitda is a particularly significant figure because it means that Milan generates cash, it does not need continuous capital increases, except for extraordinary investments. It is a first stage of financial recovery that has been reached: then at some point we will have to reach a breakeven and reach profits. I don’t think so for this exercise », continues Scaroni. Milan is also a club without major financial debts, which represents an anomaly in the Italian and non-Italian football scene: the net financial position is negative for 28.3 million, but there are no debts to banks and the debts to other lenders refer to factoring company for advances on receivables deriving from TV rights. Elliott has chosen not to burden the debt position with bonds, for example.

The club note

“In contrast to the delicate international economic situation and in the context of the continuing difficulties of the sector, the club closes the financial year 2021/2022 consolidating the recovery and relaunching process conducted in recent years, which leads to a positive Ebitda (€ 29.3 million) and a significant improvement in the club’s consolidated net financial position as of June 30, 2022, which it presents net debt of € 28.4 million (compared to 101.6 in the 2020/2021 financial year). There is also a new reduction (equal to 30 million euros, over 30%) of the negative imbalance recorded in the previous year, the result mainly produced by the positive effects of sports performance, the increase in overall club revenues, together with a regulated cost management “.

Increase in revenues

“In the 2021/2022 season – always reads the Milan note -, club revenues increase by 14%, amounting to 297.7 million euros, compared to 261.1 million in the previous year, as a result of a contribution of higher revenue from tenders (+32.5 million euros), as well as higher commercial income, royalties and sponsorship (+ € 17.6 million) and other revenues (+ € 10.9 million) which are mainly affected by the extraordinary capital gain following the sale of the “Casa Milan” property ». “These increases were partially mitigated by some factors, starting from the effects – direct and indirect – connected to the restrictive measures imposed by the Authorities due to the persistence of the health emergency that influenced some revenue items such as those relating to match-day. Further main elements are represented by lower capital gains from the sale of players’ rights (- € 14.6 million) and lower income from the sale of TV rights (- € 5.2 million); the latter related to the dispute of a smaller number of matches compared to the previous year 20/21, a season in which – for reasons related to the health emergency – some matches of the 19/20 season converged ».

(article being updated)