Monday 4 June 2012

The Problem of AC Milan

Financial fragility of AC Milan is not a news. However what the problem the club faced?

In my point of view, the size of the squad was one of the problems.

Right after the closure of 2010 summer transfer windows, Milan had the following players left on loan:

Ferdinando Coppola (worth 400,000 on 30 June 2010)
Marcus Diniz (worth 5,000,000 on 30 June 2009, estimate 4,000,000 on 30 June 2010)
David Di Gennaro (worth 2,500,000 on 30 June 2009, 1,666,667 on 30 June 2010)
3 players from Internazionale (worth 7,000,000 on 31 August 2010)
Assuming 5-year contract, that would be 2,980,000 in amortisation. However,  Di Gennaro was in 3-year contract, made the case worsen 333,333 .EURO.

Then in 2011-12 season. The arrive of Pele (exchanged with Sampirisi tagged for 2M), Chinellato 3.5M (exchange for Pasini) , the return of Zigoni, Paloschi, Oduamadi , Strasser and lastly El Shaarawy had made Milan invested more than 50 million on young players, again assuming 5-year contract, that would create 10 million amortisation on players not yet ready for the first team. Saving all the cost, 50 million already good enough to buy 2 to 3 players. However, the core of the case was Milan did not purchased the players from Genoa for real money except El Shaarawy and Paloschi, is that another side-effect of parallel trade (creative accounting)?


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