Made for Paquetà at Lyon: the impact on Milan’s accounts

Lucas Paqueta prepares to leave Milan for Lyon. According to Sky, the Brazilian footballer released his Milanello locker, said goodbye to his teammates and left the Rossoneri Sports Center.

In the next few hours, the Brazilian will in fact become a new Lyon player who would have promised to deposit a figure of 21 million euros in the coffers of Milan, according to L’Equipe, as well as a percentage on the possible future resale of the Brazilian.

But, what will be the impact of the sale of Paquetà on Milan’s balance for the 2020-2021 season?

Paquetà had arrived in Milan in January 2019 from Flamengo to 38.4 million euros and had signed a contract until June 30, 2023. With the Milan shirt he played 44 games scoring only one goal in the season and a half.

The player’s net worth as of June 30, 2019 was 33.67 million. Considering an amortization charge of 8,417 million For the 2019/20 season, the residual net value as of June 30, 2020 was reduced to 25.25 million.

If a sale for 21 million euros was confirmed with the official, Milan would make a loss of 4.25 million euro in the 2020-2021 budget (considering the residual book value as of June 30, 2020), but the economic effect of the sale would in any case be positive for 6.52 million euros, also considering the lower depreciation and savings in gross salary in the period October 1, 2020 – June 30, 2021

Source: Football and Finance elaboration

The positive economic effect on AC Milan’s financial statements for the 2020-2021 fiscal year would not change considering Paquetà’s residual book value as of September 30, 2020 instead of June 30, 2020.

In this case the capital loss would be reduced to 2.15 million, but before a lower amortization saving (considering that the amortization of the quarter July-September 2020 could be included in the accounts 2020-2021).

€ 6,523,377