AC Milan Faces Significant Financial Loss Due to Champions League Absence and Severance Payouts

AC Milan is anticipating a financial deficit of approximately €25 million for the 2025/26 fiscal year. This marks a substantial reversal from the €2.9 million profit recorded in the preceding year, according to projections by Calcio e Finanza. The club's financial reports, set for formal approval by shareholders in the autumn, will signal the end of three consecutive profitable years.

The primary driver behind this downturn is a sporting one: the team's failure to qualify for the Champions League for a second consecutive season. This absence directly impacted revenues, which decreased from nearly €500 million to around €433 million. The most significant decline was observed in broadcast income, down by 42%, and matchday revenue, which fell by 17.6%, both direct consequences of missing out on lucrative European competition. On a positive note, commercial income saw a modest increase of 5.9%, bolstered by a new agreement with their main sponsor, Emirates.

Player trading played a crucial role in mitigating the financial impact, generating around €100 million, which represents approximately a quarter of the club's total revenue. This figure is an increase from the €83.2 million achieved in the previous year. While the sales of Theo Hernández and Malick Thiaw were accounted for in the current figures, Tijjani Reijnders' earlier departure was reflected in the prior accounts. This level of player sales is likely to be a necessary strategy for Milan in another season outside the Champions League.

Adding to the club's expenditures, Milan has allocated roughly €13 million to cover the costs associated with the departures of former chief executive Giorgio Furlani and ex-sporting director Igli Tare. No similar provisions were required for Massimiliano Allegri, who reached an agreement to terminate his contract before taking on a new role with Napoli.

Despite the projected loss, it is considered manageable. With a positive net equity of €199 million, the deficit is expected to be fully absorbed. Furthermore, the club's recent acquisition of the San Siro stadium and surrounding land is anticipated to yield future financial benefits. This purchase will eliminate an annual rent liability of approximately €5 million and is expected to boost matchday revenues in the coming financial years.