Must sell cores! AC Milan lost 25 million euros in the 24/25 season and will deal with the fiscal fairness bill

In the 24/25 season, AC Milan suffered a loss for the first time after two consecutive years of profits, with a quota of 25 million euros. As the new version of the FFP (Financial Fairness Act) will be implemented next season, the Ross and Blacks will have to sell one or two core players and cut existing players' compensation expenses if they want to evade UEFA's penalties.

With the defeat in the Italian Cup final and the loss to Roma in the league, AC Milan completely lost the qualification for European competition next season, and the team is imminent to start a reconstruction plan. At present, the Red Bird Consortium has finalized the new sports director Tare, who will assist Fulani, Moncada and Ibrahimovic in the selection and signing of coaches. The fiscal revenue of the team is closely related to its competitive performance. According to the estimates of Football and Finance, under the current situation, Milan will generate a revenue and expenditure gap of about 25 million euros in fiscal year 24/25, mainly due to a slight increase in operating costs, while a sharp decline in fiscal revenue, which means that the club may lose for the first time after two consecutive years of profit.

Although the operating space in fiscal 24/25 will allow Milan to achieve a soft landing through breaking even, the situation will be even more serious next season. This season, Milan Champions League qualification bonus plus event results totaled 80 million euros, which has not yet calculated the home ticket revenue. There is no European game to play next season. The club will not only lose the event revenue, but will also be unable to trigger the relevant bonus terms of the main sponsors. What's even more tricky is that after the end of this season, the settlement agreement signed between Milan and UEFA in 2022 will also expire. Starting from the 25/26 season, the Ross and Blacks will accept regular supervision of the FFP (UEFA Financial Fairness Act) like other clubs.

The new FFP agreement that the club's cumulative losses shall not exceed 60 million euros during the 23/24, 24/25 and 25/26 seasons. It is worth noting that thanks to Tonali's transfer to Newcastle, Milan's net assets were still positive as of June 30, 2024, but there have been signs of losses this season.

Therefore, Milan must carefully plan the financial situation for next season to meet UEFA standards. They need to take three measures, one is to make up for the current fiscal gap, the second is to control the team's operating costs to within 70% of the club's total revenue, and the third is to ensure that they can return to the Champions League immediately in the 26/27 season.

Obviously, player trading is the best way to break even, and Milan has to replicate its operations on Tonali this summer. This time, Reindez is very likely to become a victim. Manchester City will make a formal offer after the end of this season, with Milan's psychological price above 70 million euros. Among other alternatives, Teo and Menion enter the contract year and there is a possibility of cashing out; Kalulu has the hope of bringing capital gains of 13.6 million euros; Marseille is considering buying out Bennaser at a low price of 8.2 million euros; Salemacles, Adrie, Poberga, Okafor, Morata and other out-of-leasers are also likely to be bought out.

As the first Club World Cup starts soon, UEFA will open a 10-day transfer window (June 1-10). Milan will complete the transfer of heavyweight players as early as early June. In terms of recruitment work, they will pay more attention to optimizing the players' salary structure.