Milan boss: I made Milan profitable for the first time in 17 years and reinvested the money in the transfer market

Hupu, October 27th: AC Milan boss Cardinale recently accepted an interview with the American podcast program "TheVarsity". In the interview, he talked in detail about his investment philosophy, Milan's new stadium plan, and his overall thinking on investing in European and Italian football.

What is it like to have a team like Milan?

"First of all it depends on the legal environment you are in as an owner. This is probably the most difficult thing I have ever done, it is full of challenges because the environment I am in is very resistant to change. But this is exactly our investment logic. In the three years since I became the owner of AC Milan, the club has achieved positive cash flow for the first time in 17 years. I also did not think that Keep that money for yourself, but reinvest it into the team. In the last summer transfer window, we invested the most among all teams in Serie A. We are building a new stadium not to make money, but to completely change the financial structure of AC Milan so that it can reach the level of Premier League clubs."

Competition between Serie A and the Premier League?

"Our real competitor is not the other 19 teams in Serie A, but the Premier League. It is an economic black hole that is sucking the wealth of the entire continent. The TV revenue of the Premier League is almost four times that of other European leagues, which is a serious problem. In Serie A, the team at the bottom can also beat the team at the top in any round. It is the most competitive league, but it is There is no reasonable return for it. Why? Because the broadcasters only want the 'best', and that's where the Super League phenomenon comes from. No one wants to watch Cagliari vs. Lecce, that's the problem. Competition is the nature of sport, but it doesn't pay off financially."

How important is the new stadium?

"We are building our own stadium, and the work is being carried out by Tim Romani, one of the best people in the industry. Once completed, I hope to share this model with other Serie A clubs, because they are not my real competitors, my goal is the Premier League."

What about "Berlusconi 2.0"?

“I said ‘Berlusconi 2.0’ and my PR team went crazy (laughs). But I mean, I want to innovate like Berlusconi or Steinbrenner did. It’s just that you can’t do it the way you used to do it anymore, everything is too expensive these days, you have sovereign funds, billionaires... you have to find another way. There is a kind of inertia in sports. Wei: The more you spend, the more you win. But it's not that simple. When I bought Milan, the valuation was 3.5 times revenue, and Manchester City or Chelsea were valued at 6 to 7 times, so I thought it was a good deal. But I asked a question: 'Why not evaluate it on a cash flow multiple? '"

About the football market?

"We need to allow teams from small markets to thrive. This is the reality I faced in Serie A, and it is also the fundamental reason that led to the emergence of the Super League concept between the Premier League and other leagues in continental Europe. And in my opinion, then we must adjust ourselves and change the economic model so that Each party in the entire environment can be self-sustaining. The key is to have the ability to self-generate. Think about it, Paramount has a history of 113 years and AC Milan has a history of 125 years, but they must be redefined, which means you have to predict the future direction of the market.”