CF: How Milan and Inter will pay for San Siro after €197m agreement

Finally, AC Milan and Inter have reached an agreement with the City Council for the sale of San Siro, valued at €197 million.

After years of working for a solution to San Siro, both Milan and Inter have found one in the stadium itself. The clubs, together, will purchase the stadium and land around it, with plans to build a new stadium being brought into action.

There have been a few nervy weeks, thanks to opposition to the idea. Nevertheless, the sale was agreed yesterday, and a 2031 opening date is hoped for, ahead of the European Championship in 2032.

San Siro costs

This morning, Calcio e Finanza have provided a breakdown of how the clubs will pay for the stadium to become theirs, with a total cost of €197m, including the €22m in costs for remediation and the Patroclo tunnel. 

The situation is as follows:

➤  €73,000,000.00 = to be paid upon signing of the Sales Agreement upfront; 

➤  Second installment to be calculated based on the value of the building rights, equal to €1,261.18 per square meter of Gross Surface Area, which will be included in the construction project for the new Stadium for a surface area between 5,000 and 25,000 square meters, as specified in the Framework Agreement required by Article 16 of the Implementation Rules of the current Land Management Plan.

The second instalment must be paid within 30 days of the date of the notarial deed acknowledging the failure to fulfil or waiver of the Termination Condition; 

➤ Third instalment equal to the difference between (i) the Price, (ii) the amount already paid pursuant to the previous two paragraphs and the sum of €22,000,000, within 10 (ten) days from the date of completion of the partial demolition works of the “Giuseppe Meazza” stadium; 

➤ Any final balance, equal to the difference between (i) €22,000,000 and (ii) the amount achieved in the final balance of the works eligible for reduction of the Price, from the date of completion of the last of the works subject to potential Deduction. 

It is also worth noting that the final balance of the ‘deferred price’ is €22m, in relation to a right granted by the Municipality. The costs will then be covered by deducting relevant amounts from the final instalment, as follows:

➤ Removal of the artefacts of the current Patroclo Tunnel from the relevant areas up to the sum of €12,400,000.00 (accounted for and verified); 

➤ Remediation of the entire GFU, excluding the Parco dei Capitani, with particular attention to the areas where the new Tunnel will be built as public infrastructure, and to the greenery that will be transferred to the Municipality of Milan, up to the sum of €9,600,000.00 (accounted for and verified). 

Certainly slightly confusing. But, on a base level, the agreements have been laid out, so the clubs are in a very strong position now.