Cardinale changes 'top-four mentality' at Milan [Bonus Article]

The reactions to AC Milan’s €4m profit for the 2023-24 financial year have been mixed. Some have praised the growth of the club, others have made it clear that the Rossoneri cannot be used as a financial vehicle for Gerry Cardinale and RedBird. I can understand both of these sides, but the good news is that the ‘top four trumps all’ mentality has been debunked - or rather no longer applies.

Some of you might be a bit confused reading that, as the Milan management - as well as Cardinale himself - quite recently stated that reaching the Champions League (thus finishing in the top four) is of the utmost importance. Together with quotes along the lines of ‘we want to win every year, but we also need Serie A as a league to become competitive again’, the confusion is forgiven.

If you take the discussion one step further, however, it’s very obvious that Milan no longer can afford to ‘just’ make the top four. There are so many reasons for this and we would be here for a long time if we were to go through them all. That being said, we will take a look at the most important factors and why the Rossoneri have been forced to change their top-four mentality.

Top four is just the start

In the years leading up to Milan’s Champions League return, all we talked about was the guaranteed amount that the Rossoneri were missing out on. If we just can get our hands on that €40m, roughly speaking, we could finally start our journey back towards the top. With a few years’ distance, it’s clear that the return was essential and this journey wouldn’t have been possible without it.

Elliott Management balanced the books, lowered the squad costs by implementing a salary as well as spending cap (post-Leonardo anyway), and slowly but steadily started work on increasing the revenue. Covid-19 made things difficult along the way given the lack of ticket sales - the biggest revenue driver - but things were looking up and the Champions League was at the helm of it.

While the main goal of Elliott effectively was to save Milan from bankruptcy, showing the fantastic potential of the club with standard business practices, RedBird wanted to take things to the next level. Convinced that he could keep the Rossoneri from operating on a deficit, Cardinale set about increasing the revenue streams and maximising the club’s brand - which is incredibly strong.

Skipping ahead a few beats, despite a disappointing campaign in the league, Milan’s first season under Cardinale was a big success in the Champions League as they reached the semi-finals. Naturally, we were no longer talking about the guaranteed €40m from the competition but instead a whopping €120m+ (!). And if he didn’t before, the American understood the power of the competition then.