As expected, Milan has officially announced that they closed the financial year 2023/2024 with a profit of €11.1 million. This marks the first time they have been in a positive financial position since 2006. In addition, their financial reports revealed the expenses incurred in extending the contract of Rafael Leao in May, as reported by Calcio e Finanza.
The negotiation for Leao’s contract extension was not straightforward due to his complicated legal disputes with Sporting CP and Lille, stemming from his messy departure from those clubs. Leao was determined to resolve these issues before committing to a new contract with Milan. The Rossoneri agreed to a reasonable annual salary of €5 million but also had to compensate Lille for their involvement in the situation.
Milan entered into a new agreement with Lille, amending the terms of the previous deal involving Leao. They paid €45 million to Lille in one lump sum, and in return, Lille waived any future compensation if Leao were to transfer to another club. It is believed that this payment was made to settle their dispute with the Portuguese club, Sporting CP.
Once these financial matters were resolved, Milan and Leao reached an agreement on a five-year contract that will be in effect until 2028. The contract includes a substantial release clause of €175 million, but this clause will only be active during specific portions of each summer transfer window.
In his fifth season with Milan, Leao has made a decent start, contributing with three goals and three assists in the 11 matches played so far.