AC Milan have been informed by UEFA that they have breach the Financial Fair Play parameters. A meeting with take place in April.
UEFA have informed AC Milan that they have breached the Financial Fair Play reports La Gazzetta dello Sport. After a period of pause due to the severe economic effects of the pandemic, the Financial Fair Play comes into effect from the 2024-25 season. The Rossoneri, Inter and Roma are currently outside of FFP parameters.
WHAT HAS HAPPENED?
The economic path of AC Milan in recent seasons has been strongly characterized by virtuous management, tending to the progressive reduction of losses and increasing revenues. The Rossoneri are projected to end the season with a minus of €40 million (depending on stadium receipts and Champions League bonuses). AC Milan have followed a path towards improvement under the direction of Ivan Gazidis who was present on 28 June 2019 at the CAS headquarters in Lausanne when Milan and UEFA agreed a “Consent Award” which contains the economic-financial guidelines that the club should have followed during the years. At the same time, AC Milan were also excluded from Europa League as a punishment for the economic “sins” mainly due to previous management.
APPRECIATED PROGRESS
From that day on, Milan started a virtuous process of consolidation of the club budget that is visible to all. The Rossoneri have always been in constant contact with UEFA and the Club Financial Control Body which is responsible for controlling the economic stability of the clubs. UEFA appreciates the efforts made by Milan in a difficult period like the pandemic one, where the cuts in expenses was clear and well structured. Elliott has always reiterated how the club must enter in a path of sustainability. The Red and Blacks must become financially stable and that’s the reason why Paolo Maldini has stayed away from excessive spending on the mercato.
SETTLEMENT AGREEMENT
UEFA has effectively notified AC Milan to start preparing the documents for the new survey regarding the compliance with the FFP parameters, that will likely be subject to revision. A settlement Agreement will be discussed in the Nyon meeting in April where Milan will present their cards demonstrating to UEFA that they have respected what has been agreed in the Consent Award with more than satisfactory results.
It is equally true that the club will not be immune from restrictions from UEFA because the rules state that if you are not close to breaking even, you have to pay something. The sanctions, in this regard, could affect the composition of the squad list for European competitions or economic penalties. Over the years, the club has set aside provisions in the budget to cover for such possible sanctions.
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