Milan Faces €25m Loss Following Champions League Disappointment

AC Milan projected a loss of approximately €25 million for the 2025/26 financial year, as estimated by Calcio e Finanza. This marks a significant decline from the €2.9 million profit recorded in the previous year. Reports indicate, through CalcioMercato, that the accounts, which closed on June 30 and will be formally approved by shareholders in the autumn, conclude a three-year streak of positive earnings.

The primary driver of this financial downturn stems from sporting reasons, particularly a second consecutive year without Champions League football. Club revenues decreased from around €500 million to roughly €433 million, with broadcast income witnessing a steep 42% drop, compounded by a 17.6% fall in matchday revenue, both direct results of missing European fixtures. While commercial income rose slightly by 5.9%, bolstered by a new agreement with main sponsor Emirates, it was insufficient to counteract the losses incurred.

In addressing these financial challenges, player trading emerged to mitigate losses, contributing approximately €100 million to the club’s total revenues – an increase from €83.2 million the previous year. The sales of players Theo Hernández and Malick Thiaw were recorded in the current figures, while the earlier departure of Tijjani Reijnders was accounted for in the prior year's reports. This level of trading is deemed necessary for Milan to sustain in another season absent from the Champions League.

Moreover, AC Milan allocated about €13 million to manage the forced exits of former chief executive Giorgio Furlani and sporting director Igli Tare. No provision was necessary for Massimiliano Allegri, who mutually agreed to terminate his contract before moving to Napoli.

Despite the incurred loss, the deficit is regarded as sustainable, with net equity at €199 million, thus the club can absorb this financial set-back. Looking forward, there is promising news on the horizon as the purchase of the San Siro stadium and its surrounding land will eliminate an annual rental liability of approximately €5 million, potentially enhancing future matchday revenues.