PM: Why a Leao renewal could indicate a change in wage strategy at Milan

AC Milan are reportedly in renewal talks with Rafael Leao and his entourage, and it could lead to a change in the club’s overall strategy.

It has been a mixed start to 2025-26 for Leao, who had an impressive preseason but then suffered a calf injury, before scoring three times in two games following his return. He is expected to be a big part of the plans under Massimiliano Allegri, so much so that the management are plotting a move.

As per a report from Matteo Moretto on Friday night, Igli Tare and co. have been thinking about a renewal for the forward in recent months, and discussions have begun.

“The club initiated initial discussions with the player’s entourage to negotiate a contract renewal. The current deal expires in June 2028, and there’s no rush to sign an extension,” Moretto said.

“However, after initial preliminary discussions in the summer, the management has reopened the discussion in recent weeks, considering offering Leao a new contract.

“This is yet another sign that Rafa is central to AC Milan’s project, both now and in the coming years. Allegri’s vision for football isn’t far removed from the club’s: for the Rossoneri coach, the ideal attack is Leao and Pulisic.”

Photo by Marco Luzzani/Getty Images

What it could mean

As PianetaMilan report, Leao’s current deal expires in 2028 and he gets €5m net per year fixed with €2m in potential bonuses. The contract also includes a huge €175m release clause.

The news of a renewal could be important for several reasons: first and foremost, Milan would secure one of their best players for the future and for the best years of Leao’s career.

The main thing would be the salary: if Milan were to increase it again, they would effectively raise the wage ceiling, given that the Portuguese is currently the highest-paid player in the squad.

This could indicate a turning point for the Rossoneri, who have previously expressed a desire to keep wages until control for individuals. With another pay rise, there would be more room to negotiate for high-level players and retain stars.