AC Milan reports a profit for the first time in nearly two decades with record revenue

MILAN (AP) — AC Milan, the Italian soccer club, has achieved a long-awaited milestone by posting its first profit in almost twenty years. The club announced a profit of 6.1 million euros ($6.51 million) for the 2022-23 fiscal year during a shareholders meeting held on Monday. This marks a significant turnaround from the previous season, which saw losses of 66.5 million euros (then $66.7 million).

After a 17-year period in the red, Milan’s return to profitability can be attributed to their record-breaking revenue of 404.5 million euros ($431.4 million) — an increase of approximately 100 million euros compared to the previous year. Club president Paolo Scaroni expressed his satisfaction with the milestone, stating, “Combining sporting success, global competitiveness, and financial stability in soccer is indeed achievable. Our approved financial statement is a testament to this. Today marks an important chapter in our club’s history, as we finally return to net profit.”

Milan’s financial success was greatly influenced by their successful run to the Champions League semifinals last season. This achievement led to a significant boost in media and TV rights revenue, totaling 41.8 million euros ($44.6 million), as well as a growth in commercial revenue and sponsorships, amounting to 44.4 million euros ($44.6 million).

The club’s transformation began in 2019, following the takeover by hedge fund Elliott Management after the previous Chinese-led consortium failed to meet loan repayment deadlines. At that time, Milan reported a club record deficit of 145.9 million euros (then $161.2 million) and was subsequently banned from participating in the Europa League due to UEFA financial fair play violations. However, under the ownership of RedBird Capital Partners, who took over the club last year, Milan’s fortunes have changed dramatically. This culminated in their victory in the Serie A after an 11-year title drought in 2022.

Club president Scaroni acknowledged the contributions of various stakeholders in Milan’s revival, stating, “We are embarking on an exciting new chapter in the evolution of our club, thanks to the strategic vision of Gerry Cardinale, the expertise of RedBird, the competence and determination of our entire management team led by CEO Giorgio Furlani, and the exceptional talent of our players, who continue to captivate and delight our loyal supporters.”

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