So much has been spoken in the media of Milan finances. Some
correct, some
much less so. Amidst the mixture
of fact and fiction, Milan relatively quietly held their annual board
meeting last week to approve the 2017-18 budget. And surprisingly enough,
against all odds, Milan were right on the money.
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| Are we right where we should be? |
Very little was reported about the board meeting last week,
other than Milan’s budget was approved with a €75m deficit, which was
comparable to last year’s losses, despite purchasing €200m+ worth of players
last summer. I am no financial expert, but if you can buy all of those new
players and sign contract extensions increasing wages like they have and still
have a similar deficit, then you have improved the income considerably. Which
basically means that despite everything you hear, Milan are headed in the right
direction.
Tomorrow, representatives meet with UEFA officials to
discuss FFP sanctions that will reportedly be handed down this week. It is nice that they can present their case
one more time before the sentence is handed down, because UEFA’s actions thus
far seem far more like Financial
Foul Play than Financial Fair Play.
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| Some of these people, who "care about football," will be deciding our fate |
At the meeting with UEFA, Fassone is expected to present new
arguments about the case, including separating their doubts about Yonghong Li’s
solvency and financial credentials from Milan’s, as Milan’s accounts are
completely transparent. This would be a very valid point, as UEFA, having
investigated Milan for their financial issues under the previous management,
seem hell bent on punishing us for doubts about Yonghong Li’s future finances,
and they actually only have jurisdiction over Milan’s finances, not Milan’s
owner.
There is talk of a possible agreement with a future minority
investor, and that could help our cause as well. Additionally, it is hoped that
Milan will have written guarantees from the Elliott Fund regarding Milan’s
solvency should anything change with Yonghong Li in the meantime. All of these
arguments are logical, but what is not logical is how UEFA have treated Milan’s
case thus far, so it’s impossible to know how they will rule. Which means our
summer continues to be filled with more uncertainties
than UEFA have about us.
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| Will UEFA actually show Milan some respect? |
Despite all of the focus on UEFA’s fault finding with Milan
and particularly all
of the lies written about Yonghong Li and his financial situation in
the media, Milan are in better shape than we thought. Despite a similar
deficit, the value of the club has increased and we have a much improved squad from
when Yonghong Li purchased the club. He continues to make all of his capital
investment payments in full and on time. So maybe things aren’t as bad as we’ve
been led to believe. In fact, the performances on the pitch are the one place
Milan have truly fallen short, having not reached the lofty goal of returning
to Champions League in one season. Other than that, Milan are right on the
money.
This post inspired by the music of The
Cure’s “To Wish Impossible Things”