Associazione Calcio Milan, widely known as AC Milan, disclosed a financial deficit of €195 million for the 2019/20 fiscal year, citing exceptional circumstances, including the global pandemic.
This marks a significant increase from the €145.9 million loss in the 2018/19 fiscal year and a €125 million loss in 2017/18, with the club accumulating nearly €700 million in losses over the past seven seasons, largely due to its absence from the UEFA Champions League.
Financial Overview
The club’s board of directors approved the draft financial statement for the fiscal year ending June 30, 2020, on October 9, 2020.
This draft is set to be presented at the shareholders’ meeting on October 28, 2020.
AC Milan attributed the substantial loss to the global health crisis, which severely disrupted operations, combined with financial challenges inherited from prior ownership.
Impact of the Pandemic
The global pandemic significantly reduced revenue streams, particularly from matchday income at San Siro Stadium and commercial activities, including the club’s museum, retail stores, and Casa Milan.
Additionally, the postponement of 10 Serie A matches to July and August 2020 led to deferred television rights revenue, which will be accounted for in the 2020/21 fiscal year.
The club’s exclusion from the UEFA Europa League due to Financial Fair Play violations further exacerbated the financial strain, though AC Milan qualified for the competition in the 2019/20 season after finishing sixth in Serie A and winning their playoffs, with expectations of partial financial recovery in the next fiscal year.
Official Statement
AC Milan stated, “The 2019/20 season was profoundly impacted by the global health crisis, compounding existing financial difficulties from previous ownership.
This resulted in a net loss of approximately €195 million.
The absence of matchday revenue, reduced commercial activities, and the deferral of TV rights revenue, alongside the UEFA Europa League ban, significantly affected the club’s financial performance.
We anticipate recovering some of these losses in the upcoming fiscal year.”
Strategic Measures
The club praised its owner, Elliott Management Corporation, for providing financial stability during this challenging period, enabling key investments expected to yield short-term benefits.
AC Milan also implemented a cost-saving strategy, significantly reducing player wages and executive salaries to improve financial efficiency.
Broader Context
The European Club Association projects that the European football industry will face losses exceeding €3 billion over the next two seasons due to the pandemic, with clubs bearing the brunt of this impact.
