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The financials of Mike Maignan’s renewal have highlighted just how important it is to renew your star players, rather than going out and signing new ones.
Contract renewals have been a hot topic, and a sensitive one as well, at Milan since the departures of Gigio Donnarumma and Hakan Calhanoglu. Indeed, many were worried that Mike Maignan was heading for the same fate after the stalled renewal talks.
Fortunately, largely thanks to the arrival of Max Allegri and his staff, Milan were able to get the Frenchman back onboard. An agreement was reached at €5m plus an additional €2m in bonuses per year, and the renewal was announced last week.
Financials make one thing clear
Maignan’s renewal will come into effect in July, when the previous deal will expire, and the new salary will cost Milan at least €6.55m gross per year. The Growth Decree does a lot of the heavy lifting here, as that salary would normally cost €9.25m gross per year.
While the tax relief is no longer available, scrapped to promote Italian players, it still applies in Maignan’s case as it can be extended for five years after the initial five years are up. That is as long as the person in question has a family or residence in the country.
However, it’s not just the Growth Decree that makes a difference here. Since Milan and Maignan will let the old deal run out before the new one kicks in, that means the Rossoneri will amortise the last portion of his €16.4m transfer fee back in 2021.
Subsequently, Milan will no longer pay an annual amortisation for Maignan; only the gross salary. It just goes to show how important it is for clubs like the Rossoneri to renew their stars, rather than starting from scratch amortisation-wise with a new signing.
In Maignan’s case, as such, it was definitely worth tabling a hefty offer to get him to sign the renewal. Just to paint a picture of how it could have been with a new goalkeeper arriving, Pervis Estupinan costs the Rossoneri €8.88m between gross salary and amortisation every year…
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