THE CLUB'S RECOVERY AND RELAUNCH CONTINUES

Today, the financial statements for the year ending 30 June 2021, which were approved by the Board of Directors on 27 September 2021, were submitted to the AC Milan Shareholders' Meeting.

Despite the adverse impact of the Covid-19 pandemic for the entirety of the season, AC Milan's 20/21 financial statements closed with a significant reduction (€98.2 million) in losses compared to those registered in the previous financial year, thanks to the combined positive effect of sports performance, increased revenues and further optimisation of expenditure and organisational costs.

The positive performance on the pitch, which saw the Club reach second place in the League and compete in the UEFA Europa League, resulted in higher revenues from broadcast rights, with a total increase of around €75 million; additionally, a revenue increase of around €17 million was driven by sponsorship sales and promotional advertising agreements. Continued focus on optimisation of expenses and organisational costs resulted in a reduction of approximately €31 million.

These figures, which represent a significant improvement, were offset by a €24 million decrease in revenues due to matches being played behind closed doors in the various competitions the Club was involved in. The impact of the pandemic on AC Milan's accounts for the fiscal year that has just ended amounts to around €55 million in lost ticket sales and commercial revenues, which were partially offset by lower stadium management costs.

The Club's Net Financial Position also shows some improvement compared to last year, with net debt of around €100 million, mainly due to a €31.3 million reduction of factoring payables, thanks to credit transfers during the financial year, which offset the increase in payables to banks in order to finance the acquisition of the club's Casa Milan headquarters for around €42 million.

The majority shareholder continued to provide significant financial support throughout the 2020/21 financial year in the form of a capital investment worth a total of €129.5 million.

However, it should be noted that the strategy pursued by AC Milan to combine improved sports performance with a focus on financial sustainability does have broader implications: indeed, it is very challenging to bridge the gap with the top European clubs given the current lack of a fundamental and strategic asset such as a state-of-the-art stadium.

"The results of this latest financial report clearly demonstrate progress in terms of solidifying and relaunching the Club," said AC Milan President Paolo Scaroni. "It is not an easy path and there is still a long way to go – due in no small part to the current crisis that continues to affect the entire sector – but we are turning it around. It is a positive outcome, which is the result of a combination of factors: the vision and expertise of the management team, the solidity and support of the ownership and the positive trajectory on the pitch with a First Team that continues to delight and entertain."

"We are building the foundations of an ambitious project for the future of AC Milan with a clear and coherent strategy," said AC Milan CEO Ivan Gazidis. "We want to create an innovative, sustainable and well-liked Club, both on and off the pitch. We want to get AC Milan back where it belongs, both performing well on the pitch and achieving financial sustainability, as well as reaffirming the power of the brand at an international level."