Known more extensively in world football for their association with British club Arsenal, Fly Emirates could one day be responsible for the resurrection of former European giants AC Milan. This is because the Rossoneri have renewed their shirt sponsorship with the airline company for a further five seasons, with a reported €100 million flowing into the club in this timescale.
Comparatively speaking, the deal would make AC Milan the highest earners from a single sponsor in Serie A. Their closest financial rivals, Juventus, earn just over €10m a season, with simple maths deducing the Rossoneri are likely to earn double this figure per year from Fly Emirates. Although the Bianconeri are expected to extend (and no doubt improve) their deal with Jeep, AC Milan still have an arrangement that could prove difficult to better in Serie A.
The most immediate need for the Rossoneri is the construction of a new stadium. The penning of the sponsorship deal has coincided with fresh talks regarding a new stadium, with images appearing online giving an artistic impression of their new home. So apparent is this link that the project is already being dubbed the ‘new Emirates’ in reference to Arsenal’s own stadium. There can be no doubt that AC Milan are looking to follow in the footsteps of Italian champions Juventus in maximizing their revenue with a modern stadium.
With the cash flowing in and the new venue under construction, AC Milan will also find themselves in possession of transfer funds. Owner Silvio Berlusconi has been frugal in his association with the club leaving a squad bereft of quality. Earlier in the month reports suggested the Rossoneri could revive their interest in Porto striker Jackson Martinez, with the surplus funds likely to go straight toward the big money move. This would follow the trend set by the aforementioned Arsenal, who have started spending regularly in the transfer market following the completion of the Emirates Stadium.
The lack of spending power has developed into a major issue for AC Milan as they look less and less like the 2007 Champions League winners. Free signings and bargain deals have dominated each season and it’s been reflected in their performances, with no European football and inconsistency in Serie A.
Above all else the club is striving for sustainability, looking to emulate Bayern Munich’s own model by becoming a club built on it’s own personal fortune. However Serie A clubs earn much less than their German counterparts and the television rights gifted to British clubs put them in a whole different category.
Having been through a period where the club had as much as €300m in debt, the Rossoneri are unlikely to ever lead themselves down the same path again. Both Silvio and Barbara Berlusconi have spoken about the necessity of creating an AC Milan team based on their youth prospects, minimizing spending and balancing the books. With the television right monopoly stacked against Serie A, AC Milan will need to be creative with how they allocate their funds and avoid making needless signings.
The transfer activity relating to vice-president Adriano Galliani is of particular interest. Once considered a transfer guru who could do no wrong, now doubts over his ability are beginning to make themselves heard. Although his shrewd negotiations skills have resulted in some key acquisitions, some transfers defy logic.
The €12m spent on Alessandro Matri is as good an example as any. With a limit to what they could spend fans were furious to see the amount paid to Juventus for Matri. It will be interesting to see whether Galliani is slowly edged out of his position at AC Milan, as his current role allows him free reign to do as he pleases without fear.
The Berlusconi family may have the ownership of AC Milan in a tight grip, but they are also hoping Fly Emirates can help them reach a period of self-sufficiency. Should this not be enough, then selling shares to interested parties could be a solution; such as Thai businessman Bee Taechaubol. At the root of it all will be Fly Emirates, who look like resurrecting a fallen giant in AC Milan before they are forgotten.
Follow Louis Gibberd-Thomas on Twitter: @mercutio156
Hey,
The money blown on Matri wasn’t Galliani’s fault. Zio Fester was interested in Ljajic & Tevez, but there were CL qualifiers to get past at the start of last season. Remember Galliani saying that Berlusconi didn’t want to spend before qualification was sealed, because missing out on CL means a lot of money lost. The president’s reluctance to spend early cost the club big time – his financial advisors and all that.
Milan could’ve obviously signed a much better forward for that fee, but Matri was what Allegri asked for probably because of their successful relationship at Cagliari. It was a late signing and it was the coach’s choice, not the CEO’s. And between the two, Allegri, as we all know, is the one who’s more prone to defying logic. If Galliani gets given the funds at the right time then Milan can continue signing some genuinely good players IMO. Hopefully the finances from this new deal will be put to good use!