Recently completed financial analysis showed that the attempts of the Italian club "Milan" to return to the ranks of European powerhouses are not only ineffective, but also loss-making - expenses have been exceeding revenues for some time now.
The "Milan" club, who has won the Champions League trophy 7 times in the past, has been lingering in the middle ranks of the Italian Serie A league for several years now.
The US investment management company "Elliott Management" took over the club's management last year from Chinese businessman Li Yonghong. In 2017, he took a loan from "Elliott Management" to buy the club from Silvio Berlusconi, but failed to repay the loan on time and was forced to relinquish the club.
"Elliott Management" held onto the strategy that the investments will pay off in the near future. However, the club's consolidated losses on June 30 were 16% higher compared to the same time last year - from 126 million euros it jumped to 146 million euros.
"Milan" revenues decreased by 15% to 241 million euros, while expenses increased by 19% to 373 million euros. This information was reported to the news agency "Reuters", but neither the club nor its sponsors wanted to comment on the situation.
The last Serie A title won by "Milan" was in 2011, and they last played in the Champions League 6 years ago. "The red and blacks" could have played in the Europa League this year, but lost this right by violating UEFA's Financial Fair Play rules.
This season, "Milan" is currently in 13th place in the Italian championship after 7 rounds. The club has already fired coach Marco Giampaolo and replaced him with Stefano Pioli.
"Milan" CEO Ivan Gazidis asked for the fans' patience, stating that a lot of hard work is needed to "steer the ship in the right direction."
