Milan, budget 2018-2019: in-depth analysis by Milanisti 1899

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…We talked a lot, often inappropriately, of the Milan market just ended. We at Milanisti 1899 also want to contribute to the debate, a contribution not based on sensations but on numbers: enjoy the reading and thanks to those who worked on it.

MILAN, BUDGET 2018-2019 – The purpose of this analysis is to assess the impact of the latest market maneuvers on the 2018-19 financial statements together with other previously concluded transactions: the contract extensions of Gattuso, Cutrone, Calabria and Romagnoli; for the latter, among other things, the variation on its amortization quota was also taken into account.

Please note that, with the exception of the residues to be depreciated for the individual contracts, and the relative share, or official amounts taken from the Milan budget, while in the cases of Niang and Kalinic from the results obtained on those, Turin and Fiorentina respectively, the data shown here, above all the compensation to the players, are an average of what is learned from the press.

There is, therefore, no claim to audit, but simply a forecast of the spending trends and any savings compared to the previous financial year 17-18.

To do this, in the Final Summaries box at the end of this document, four cells have been emphasized that respectively represent

  • Depreciation and amortization (if negative, decreased compared to the previous year)
  • Gross Wages (if positive are up compared to the previous year)
  • Capital gains
  • Onerous Loans (temporary transfers or the algebraic sum between incoming and outgoing ones)

It should be remembered that each definitive purchase, in addition to increasing the amount of the salary, generates an annual depreciation rate resulting from the contract value divided by its duration, which will feed the group described above. On the contrary, each sale will decrease the amount of wages, with the exception of loans, as well as amortization for the annual portion, calculating  whether it will generate a minus or capital gain,also highlighted in the specific cell.



Notes on the operations listed above:

  • The salaries of Higuain and Bonucci, at least for the current season, are equivalent, as well as the values of the contracts exchanged between Bonucci and Caldara himself.
  • Bakayoko’s salary is an average of what is reported. In the first instance, from the CorSera (2.5M) and, subsequently, from the Gazzetta dello Sport (3.5M)
  • The purchase of Castillejo is outright. From what is learned from AS, Milan would have demanded an evaluation of the contract of Bacca equal to an amount of 15M increasing, therefore, the value of that of the Spaniard. The former Villareal has been set at 31 and the Colombian at 13, which is sufficient to avoid generating an immediate loss.


  • The higher cost of the Castillejo purchase contract would be diluted over time.


  • From what has been learned from an interview of Cairo, Niang’s ransom took place in July 2018 and from the Turin budget it is clear that the amount is 12M.


  • We learn from the financial statements of Fiorentina, closed on 31.12.2017, how the club has recorded a capital gain on the sale of Kalinic on a valuation of its contract equal to 20M. We therefore proceeded to account for six months of amortization which led to the highlighted residual.


  • For the sales of Antonelli, Bacca, Gabriel and Vergara, all from one year of contract expiry, we proceeded with the “free list” so that the loss of the transfer corresponds to the same saving on the depreciation and the decrease in Gross Salaries.


  • Bertolacci is considered a purchase, in reality a loan repayment, in order to insert its emolument among the increases in Gross Wages. In fact, having been sold to Genoa last year, it is presumed that it will not contribute to the Personnel expenses accounted for as at 30.06.2018.


  • The salary of Bacca, similar to what happened with Bertolacci, the Colombian had been loaned to Villareal and, for the past financial year, it is assumed that it was paid by the Spaniards, it was not considered a savings. The remainder also included the month of July 2018.


  • Locatelli is considered a loan and, although stipulated with obligation, for consistency with the Lapadula and Niang operations, started in the previous year but with capital gains accounted for in the following one, the same is done in its case.



In this table, highlighted in bold, the contract extension operations that led to an increase in net salaries and, in the case of Romagnoli, a recalculation with consequent savings on its previous amortization rate.

In the case of Calabria, as the player extended in December 2017, we counted half of his net increase.

Suso is excluded because the agreement dates back to September 2017 and, essentially, irrelevant





In conclusion, the savings on amortization and capital gains on disposals offset, almost entirely, the higher costs for salaries and charges for loans.

With regards to the personnel expenses, it is noted that according to the latest official figures closed as of 31.12.2016, they amounted to 157.802M. In relation to gross sales (236M), these generated a% index of around 67.

Waiting to know the official data for the year 17-18, on the basis of previous assessments made also in the light of the information disseminated by the media, we assume that the aforementioned expenses can be attested to around 140M. Given the latest communications of the company, in which, compared to the previous management, it was claimed to have increased revenues by about 20M, the gross turnover would be quantifiable in 255M. The% index, therefore, could drop to around 55.

To obtain the same index in the year 18-19, if the forecast on the increase in Gross Wages should prove to be correct, the gross turnover should be around 288M.

Associazione Milanisti 1899


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