In September 2022, UEFA announced that it had entered into a "Settlement Agreement" with several clubs, including AC Milan, for failing to meet the break-even requirement set by Financial Fair Play regulations for the monitoring period that ended with the 2021/22 season. The Rossoneri agreed to a three-year settlement agreement, simultaneously accepting a €2 million fine, with an additional €13 million conditional on compliance with the terms.
The settlement agreement was established with consideration for the impact of the pandemic on the financial health of clubs during the reporting periods ending in 2020, 2021, and 2022. The agreement signed with UEFA covers the following:
The four reporting periods ending in 2022, 2023, 2024, and 2025;
The four seasons 2022/23, 2023/24, 2024/25, and 2025/26.
At the end of the current season, which concludes today, Monday, June 30, 2025, the final reporting period subject to FFP evaluation will also come to an end: the clubs involved must have a football-related earnings deficit within the acceptable deviation (i.e., €5 million). However, the shortfall can exceed this limit—up to €60 million—if these losses are covered by the club's own capital. Milan, having recorded positive balance sheets in the last two years and with a third one expected to close in the black, is more than secure in this regard. The same goes for the "squad cost rule": squad costs must not exceed 70% of revenues, and here too, the Rossoneri are comfortably within the limits.
Will Milan be "freed" from FFP and able to spend how and when it wants? No, because UEFA’s monitoring of the past three years will continue on a rolling annual basis: the squad cost rule and the maximum €60 million deficit over a three-year period remain firm benchmarks. The "advantage" now is that there are no longer intermediate targets to hit, as there were during the Settlement period, nor is there a looming threat of new fines or restrictions on the number of players eligible for UEFA competitions.
Source: Milannews.it
