AC Milan will not be doing a crazy spending spree in the transfer market. Despite gaining 125 million euros from the Champions League campaign, RedBir are not going to change their parameters when it comes to running the club.
In the summer, in fact, the bar will not be raised. No significant spending or investments are expected in the transfer market. According to what is reported by La Gazzetta dello Sport, the American fund, owned by Gerry Cardinale, bought AC Milan with a cash payment of 600 million euros from Elliott and the remaining 600 millin euros are guaranteed by a vendor loan, also from Elliott. The annual sports expenditure (salaries plus amortization of player registrations) must always be under control. This is why, parallel to the growth of revenues, those responsible will have to work well on both the incoming and outgoing sides, in a management focused on self-sufficiency.
The new contract with Emirates (from €15 million to €30 million) will come into effect in 2023-24, but replicating the Champions League harvest will not be easy. The ownership of the stadium, if and when it is built, will provide the most significant additional income, estimated at least €80 million. In the meantime, as La Gazzetta dello Sport writes, the team's competitiveness must be maintained high to continue participating in the Champions League, to have constant access to international markets, and to continue growing in terms of sponsorship and advertising, monetizing the rebranding (from €153 million in 2021 to €358 million in 2023, according to Brand Finance). Another challenge for RedBird is to have a dynamic and profitable management of 'player trading', which is the scientific approach that allows identifying the best moment to sell a player under the best possible economic conditions.
Stability means: stable income to the pockets of the investors. That’s it.
Sport is dead.
Finances won.
How tifosi will react?
That’s Mr. Cardinale.