AC Milan: A Financial Renaissance Under RedBird Capital

Three consecutive years of profit mark historic turnaround for Italian giants

After 17 years in the red, AC Milan have orchestrated one of European football's most remarkable financial transformations. Under RedBird Capital's ownership, the Rossoneri have posted three consecutive annual profits whilst simultaneously investing heavily in their squad and planning a state-of-the-art stadium development.

The club's latest financial results, covering the year ending 30 June 2025, reveal record revenues of €494.5 million alongside a net profit of €3 million—modest in absolute terms, but symbolically significant as confirmation of sustained profitability.

A Four-Year Financial Transformation

AC Milan's journey from chronic losses to consistent profitability represents a masterclass in strategic financial management within football's volatile economics.

Table 1: AC Milan Financial Performance (2021/22–2024/25)

Sources: AC Milan official statements, Calcio e FinanzaThe 2021/22 Season: Foundations for Recovery

The 2021/22 campaign marked a transitional period. Whilst the club recorded a net loss of €66.5 million, several underlying metrics pointed towards improvement. Revenue climbed 14% to €297.7 million, driven by increased matchday attendance as COVID-19 restrictions eased, enhanced commercial partnerships, and the disposal of property assets including Casa Milan's premises.

Crucially, net financial debt fell dramatically from approximately €101.6 million to just €28.4 million, demonstrating improved cash management. The club also strategically revalued the Milan brand under Italian legal provisions, strengthening its balance sheet position.

The Breakthrough: 2022/23

The following season delivered Milan's first profit in 17 years. Revenue surged 36% to a then-record €404.5 million, generating a net profit of €6.1 million. This dramatic improvement stemmed from multiple sources: enhanced sponsorship agreements, increased commercial revenues, and success in European competition.

Operating cash flow reached €78 million, providing resources for capital expenditure of approximately €79 million. RedBird Capital, which completed its acquisition of the club in 2022, injected €40 million in shareholder support, partly directed towards stadium project planning.

Sustained Success: 2023/24 and 2024/25

Profitability continued despite challenging circumstances. The 2023/24 campaign saw revenue reach €457 million and profit of €4.1 million, even as audiovisual and ticketing revenues fell by approximately €40 million due to early European exit. The club absorbed an 8% increase in wage costs and net squad investment exceeding €100 million across two seasons.

The most recent results demonstrate resilience without European competition income. Revenue grew 10% to €494.5 million, driven primarily by commercial operations which totalled €152.3 million—an all-time high for any Italian club. Player trading contributed significantly, with revenues rising 30.6% year-on-year, including notable capital gains from transfers.

Net equity stood at a healthy €199 million as of 30 June 2025, though net financial debt increased to €92.6 million, reflecting substantial transfer activity and capital expenditure. Over the past two seasons, Milan have invested more than €250 million gross in playing talent.

Commercial Strength: The Revenue Engine

Milan's commercial performance has been transformative. Sponsorship revenue reached €91.1 million in 2024/25, with kit supplier Puma contributing €25.3 million and shirt sponsor Emirates providing €21 million. Commercial revenues and royalties hit a club record of €61.2 million, driven by enhanced e-commerce operations and a new flagship store on Via Dante in central Milan.

Combined commercial income of €152.3 million represents not merely a club record but an Italian record, underlining Milan's marketing prowess. This diversified revenue base has proven essential in mitigating the volatility of UEFA competition income.

The San Siro Project: A Billion-Euro Vision

The cornerstone of Milan's long-term strategy is the new San Siro stadium, jointly developed with city rivals Inter. In November 2025, both clubs finalised the purchase of the existing stadium and surrounding area from the Municipality of Milan for €197 million, marking a decisive step forward after years of planning and negotiation.

Table 2: New San Siro Stadium Project Overview

Sources: AC Milan, The Score, Gazzetta dello Sport, Sempremilan

The project encompasses far more than a football stadium. Plans include a comprehensive entertainment district featuring hotels, restaurants, retail spaces, club museums, and mixed-use commercial developments spread across approximately 281,000 square metres.

Revenue Projections: The Stadium Dividend

Public statements and media reports suggest the new facility could transform both clubs' economics. Current estimates indicate each club generates approximately €80 million annually from stadium operations. Post-completion, this could rise to between €130 million and €180 million per club—a potential uplift of €50–100 million annually.

Multiple revenue streams underpin these projections. Premium seating and hospitality will accommodate 13,000 spectators, dramatically expanding this high-margin segment. Non-matchday activities—museum visits, stadium tours, concerts, and corporate events—are expected to generate substantial income. Milan president Paolo Scaroni has stated that at least 10% of total revenue will derive from such activities, with 500,000 annual visitors anticipated.

Naming rights represent another significant opportunity, with early estimates suggesting €13.8 million annually. The broader commercial district, including retail, dining, and accommodation, is projected to contribute approximately €124 million yearly across the entire development.

Implementation Timeline and Risks

The clubs aim to submit detailed implementation plans by early 2027, with regulatory approvals targeted by February 2027. Environmental assessments and permit issuance would follow, enabling construction to commence from October 2027. The build programme spans 36 months, suggesting completion by late 2030 or early 2031—crucially, ahead of Euro 2032, which Italy co-hosts with Turkey.

However, significant risks remain. Inter president Giuseppe Marotta has publicly expressed concern about Italian bureaucracy potentially delaying the project. Over the past 15 years, only three Italian stadiums have been modernised, compared with 50 new facilities across the rest of Europe representing €20 billion in investment.

Construction costs on major stadium projects frequently exceed initial estimates. The clubs' €1–1.2 billion investment projection, whilst substantial, may prove optimistic given the complexity of building adjacent to an existing structure and the ambitious scope of the wider development.

Revenue forecasts also carry material uncertainty. The projected €130–180 million annual income per club assumes robust demand for premium seating, strong non-matchday commercial performance, and successful naming rights agreements. If any of these elements underperform, the financial case deteriorates significantly.

Strategic Context: The Serie A Challenge

Milan's financial progress must be understood within Serie A's broader competitive challenges. Italian clubs have fallen behind their Premier League, La Liga, and Bundesliga counterparts in stadium infrastructure, matchday revenues, and overall income generation.

Milan's 2024/25 revenue of €494.5 million, whilst a club record, lags behind city rivals Inter (€567 million in 2024/25) and considerably behind Europe's elite. Manchester United, Real Madrid, and Bayern Munich generate annual revenues exceeding €700 million, with much of the differential attributable to superior stadium revenues and more lucrative broadcast agreements.

The new San Siro represents Milan's attempt to close this gap. Modern, multi-purpose venues have proven transformative for clubs such as Tottenham Hotspur, whose new stadium has driven commercial revenues to £255.2 million—the club's largest revenue category. Milan and Inter aspire to replicate such success in the Italian context.

Financial Discipline Under RedBird

RedBird Capital's ownership philosophy emphasises sustainable growth. The private equity firm has maintained financial discipline whilst investing heavily in the playing squad—a delicate balance that many European clubs struggle to achieve.

The clubs' wage-to-revenue ratio stood at 32.3% of total revenues in 2024/25 (approximately 27.7% for players alone), comfortably below UEFA's recommended 70% threshold. This prudent approach provides financial flexibility whilst remaining competitive.

RedBird has also leveraged its network to enhance commercial operations. The firm's expertise in sports, media, and entertainment sectors has facilitated new partnerships and revenue streams, contributing to Milan's record commercial performance.

The Milan Futuro Project

Beyond first-team operations, Milan have invested significantly in youth development through the Milan Futuro initiative—a second team competing in Italy's professional divisions. Whilst the project incurred costs reflected in recent financial statements, it represents a long-term investment in talent development with potential financial returns through player sales.

Conclusion: A Work in Progress

AC Milan's financial transformation from chronic losses to three consecutive years of profit represents genuine progress. Revenue growth has been consistent, commercial operations are thriving, and the balance sheet has strengthened considerably.

However, challenges persist. Net debt has risen to €92.6 million, reflecting substantial squad investment and project costs. The club operates in a highly competitive environment where even sustained profitability of €3–6 million annually provides limited margin for error.

The new San Siro stadium project represents both Milan's greatest opportunity and its most significant risk. If executed successfully, the facility could generate an additional €50–100 million in annual revenue, propelling Milan towards the financial elite of European football. Construction delays, cost overruns, or disappointing commercial performance could undermine the business case significantly.

Milan's recent financial performance demonstrates that Italian clubs can compete sustainably despite structural disadvantages. Yet the ultimate measure of RedBird's stewardship will be whether this period of stability evolves into sustained competitive success both on the pitch and in the accounts.

For now, AC Milan can legitimately claim to have achieved something unprecedented in their modern history: three consecutive years in profit whilst building for an ambitious future. Whether this financial renaissance translates into silverware—and whether the billion-euro stadium gamble pays off—remains to be seen.

This analysis is based on official AC Milan financial statements, regulatory filings, and reputable media sources including AC Milan's investor relations communications, Calcio e Finanza, Gazzetta dello Sport, The Score, and Sempremilan. All figures are stated in euros unless otherwise indicated. Revenue projections for the new San Siro are based on club statements and media reports rather than audited financial forecasts.