AC Milan Back in Red: €25 Million Loss Breaks Three-Year Profit Streak

FolioPitch.com – 07 July 2026 | AC Milan have recorded a financial loss of €25 million for the 2025/26 fiscal year, marking a sharp reversal after three consecutive years of profitability. This development, widely reported as CF Back in the red Milan record 25m in losses after three years of profit, signals a strategic shift for the Rossoneri under RedBird ownership. The club, which had prioritised financial discipline and player sales to maintain black ink, now appears to be investing heavily in the squad—a move that has pushed them back into negative territory.

The CF Back in the red Milan record 25m in losses after three years of profit comes as no surprise to close observers. Last summer, the sale of midfielder Tijjani Reijnders—who had just signed a new contract months earlier—was widely seen as a necessary measure to balance the books. That transaction deepened the perception that Milan valued profit over on-field success. However, the latest figures suggest a change in philosophy. The club has already completed the expensive signing of Gonçalo Ramos, with more arrivals expected in a summer spending spree.

According to financial reports from Calcio e Finanza, Milan’s revenues fell by 12% to €433 million, down from €494 million in 2024/25. The primary culprit was a 42.4% drop in TV revenue, which tumbled from €154 million to €89 million—a direct consequence of failing to qualify for the UEFA Champions League. Commercial revenue, however, showed resilience, rising 5.9% to over €160 million. Meanwhile, income from player management (sales and loans) surged to €100 million, up from €72.4 million.

On the cost side, the club managed to reduce expenses by 7%, cutting €25 million to bring total costs to €443 million. This reduction helped mitigate the revenue decline, but was insufficient to prevent the €25 million deficit. The CF Back in the red Milan record 25m in losses after three years of profit is a notable milestone because it breaks a run of profitability that had been a hallmark of the RedBird era.

It is important to note that Milan’s financial position remains stable. The club reported net assets of €199 million, providing a comfortable cushion against the loss. The CF Back in the red Milan record 25m in losses after three years of profit does not indicate any immediate financial danger. Instead, it reflects a deliberate decision to allocate more resources to the playing squad after years of austerity. The Ramos signing is just the beginning; fans can expect further investment as the club aims to close the gap with Serie A leaders and secure a return to Europe’s elite competition.

The breakdown of revenues reveals both challenges and opportunities. The sharp drop in TV revenue underscores the importance of Champions League qualification. Without that income, Milan must rely on commercial growth and player trading to stay competitive. The increase in commercial revenue is encouraging, but the club will need to sustain that momentum. Player management income, while volatile, provided a significant boost this year.

In conclusion, AC Milan’s return to the red is a calculated risk. The CF Back in the red Milan record 25m in losses after three years of profit shows that the club is willing to sacrifice short-term financial perfection for long-term sporting success. If the investment pays off with a return to the Champions League, this loss will be seen as a turning point. If not, the criticism of RedBird’s priorities will only intensify. For now, the Rossoneri are betting big on the pitch.