AC Milan: From the glory to the devaluation
AC Milan is facing the most miserable financial years in its history. According to Sempremilan.com, for the first time, AC Milan has been fallen from the list of the top 20 profitable football clubs in the Deloitte Football Money League. The seven-time European champions are now in the 22nd place, with €191.7m revenues taken in during the 2016-17 season.
The financial contribution of the UEFA Champions League
Other Italian clubs in the top 20 were Juventus in 10th place with a revenue of 405.7€ million and Napoli in 19th place with 200.7€ million. Roma sits just below Milan in 24th place on 171.8€ million, but the Giallorossi will likely move ahead in the 2017/18 season due to their qualification to the Champions League group stages and then to the semi-finals against Liverpool.
AC Milan’s incredible team of the 2000s
The image below reveals the importance of Champions League in the financial prosperity of each club. It is clear that from the season 2002/03 until 2006/07 Milan was in the first 3-4 places in Deloitte’s ranking.
During these years the Italian club reached in three Champions League finals, one semi-final and one-quarter final. This steady and very successful progress in the most lucrative competition led to the above ranking.
Now AC Milan faces an apparent contradiction. From the season 2012/13, the club’s position in Deloitte is being decreased gradually, and the club has not been qualified in the Champions League for the next year. The club invested more than 200€ million for transfers to return on the top of Serie A, but the club’s performance was inferior this season, and the 7th place is the most realistic position for AC Milan. Thus, next year will also be a tough year for the club due to the loss of the broadcasting revenues from Champions League. However, Deloitte’s consultant Sam Boor proposed AC Milan could still recover financially. “AC Milan has got its financial challenges, but it’s still a very big brand”.
It is true that AC Milan is a legendary and a historical Italian club. Nevertheless, the future of this club seems ominous without positive messages. Juventus, Napoli and Roma have been developed their financial revenues significantly, and AC Milan has lost the competition in Serie A. The management of Rossoneri needs a deep redistribution. AC Milan does not integrate new talents, so the club does not sale any potential talent to gain revenues.
Additionally, coaches including Inzaghi, Brocchi or Gattuso cannot bring the happiness to San Siro without well-known and star players because they are not experienced. From my point of view, Milan should invest in youth development to generate their revenues and their future star players. They should also trust one coach for a whole season, and thus the players adopt a specific mentality and tactical approach. Step by step AC Milan will find the way back to trophies and glory but a successful financial management is essential to achieve this target.