During these days the rumors of a new stadium owned by Milan and Inter have become more intense and also there is the confirm from both the societies. In fact according to Inter’s CEO Alessandro Antonello, he told Sky Sport Italia:
- “We’ve been working on this project with Milan and we believe that a stadium we both own would be crucial for our growth,”
- “Inter and Milan have been working on the San Siro project for several months now. We still have work to do, but the time is ripe.
- “Soon we’ll inform the city council of what choice the two clubs have made. The city of Milan needs a stadium on par with those of the biggest cities in Europe.”
Then according to Gazzetta dello Sport and Corriere della Sera:
- “The new stadium will be built in the parking lot next to San Siro. The new stadium will have a capacity of 60.000. The construction period is estimated to be around 2½ years (30 months). The total cost of the stadium will be in the region of €600m”.
- “Corriere della Sera confirm Milan and Inter are both heading towards the plan to demolish San Siro and build a new stadium. The demolition process will be paid by both clubs. The new stadium will cost around €650M shared equally between both clubs”.
Yes, San Siro will be demolished but all the memories we rossoneri had in that stadium will remain in our hearts. Nowadays Milan’s earnings from the stadium are bad and a part of the earnings go to the Milan municipality and also they have to pay an annual tax to use the stadium. So the earnings for the club are limited.
Therefore Gazzetta dello Sport informed that:
- “In the next 30 months the technical times dictated by the law must be added, which must lead to the approval of the project presented in the Municipality. The process foresees, in series, the feasibility study to be presented to the mayor, then a Conference of preliminary investigations which must bring within 90 days the declaration of ‘public interest’ of the work”.
- “From then on the two clubs will have to incorporate the possible (and probable) clarifications of the Municipality into a definitive project, to be introduced in the actual Services Conference that in 120/180 days (depending on the involvement of the Lombardy Region, discounted in this case) will have to produce the definitive yes”.
- “That’s not all: we will need a variant of the urban planning convention before the final ok for the Region with permission to build. Imagining optimistically a smooth path, it takes another 18 months. Therefore: total 4 years, starting from the probable announcement of the end of April, therefore first game in the new plant not before the 2023-24 season”.
The model to be followed is Arsenal’s Emirates Stadium which guarantees the club €112M. However, the entire urban area will be redeveloped with more activity and stores instilled. Further, the shared stadium will allow both clubs to bank the same amount of a stadium built on their own but the returns from the exploitation of the stadium when there’re no games will be halved.
But why the Arsenal model? Well, initially the idea was promoted by Ivan Gazidis (our CEO) and had an huge impact on Arsenal’s finances, in fact according to a Forbes article:
- The revenue generated from match days exploded after the move to the Emirates. It more than doubled in the first year (a 107% increase) and other the last three years it has settled at $130M.
- Broadcast revenue is the product of bidders willing to pay more and a club being successful on the field and being rewarded accordingly through a greater percentage of prize money.
- Commercial revenue lagged for a number of years although much of the drag was self-imposed. Arsenal signed long term deals to gain “revenue certainty” as a hedge against the risk of developing the new stadium.
- With the new stadium and commercial sources Arsenal have found an equilibrium that does not require the sale of players or the speculative and uncertain business of property development.
Arsenal obtained really good results with their new owned stadium, and that’s why the main clubs are or either renewing their stadiums or building new ones, because they need to increase their profits not only offering to the fans to watch a football match, but also new experiences in the stadium, stores, restaurants, pubs, museums all in order have new sources of income.
In conclusion, Milan needs a new stadium specially because of all the financial problems and struggles the club is having, it is urgent and can provide a definitive solution to our finances. I know some of you are opposing with a new stadium and leaving San Siro, but it is not more a financial viable option to continue playing in San Siro and have to pay money to the municipality, the club earnings in tickets are not suitable anymore. It’s hard rossoneri but it matters the Club, our beloved Milan and we need to support them in whatever facility they will play. Welcome to Future AC Milan!