GdS: Milan back into the red – why Cardinale plans to keep investing

Yesterday, it was officially confirmed that AC Milan had ended last season in the red, but Gerry Cardinale will not change his new vision.

Seeing that Milan ended the year in the red may bring on worries for some. However, there are things to support the loss and it has regularly accompanied reports about a potential drop into the red that the Rossoneri wouldn’t be in financial trouble as a result.

After years of profit, there is credit in the bank – both metaphorically and literally – so the new way of operating will not be thrown away.

Cardinale’s plan

Instead, Gazzetta dello Sport reports that Cardinale plans to continue investing in the club, as written in this morning’s edition of the paper (seen below).

After missing out on Champions League football, recording a loss was inevitable and this was what confirmed by Paolo Scaroni yesterday. However, it’s not like the club had massively dropped. Profits had only totalled €13 million across three years. So, it’s not like a drop from €10m profit per year to a €24m loss.

It’s a ‘modest’ loss, as the paper puts it, and the deficit was largely absorbed by shareholder equity after injections from Elliott and RedBird – which amounted to €176m in June.

Investment will continue too, with Cardinale keen to invest in the team to strengthen the sporting competitiveness and enhance the club’s value in the medium and long term. Additionally, there is the small matter of building a new San Siro, which will substantially boost the club’s finances.