Bacca to Villarreal on loan with an option to buy. This is, according to respected sources, the formula that has been agreed between the Spanish side and Milan that will see the Colombian striker return to La Liga.
According to highly regarded websites that specialise in transfer market news, Villarreal will pay Milan a sum of around €2 million for the loan and will have the option (not the obligation, as it originally seemed) to buy Bacca permanently for a figure of just under €20 million (reportedly around €18/19 million).
But what impact will this have on Milan’s finances for the 2017/18 campaign? The first positive effect will be the €2 million Milan will receive from Villarreal for the player’s loan fee, as well as the major savings they will make on his wages.
Bacca, who the Rossoneri signed from Sevilla on 2nd July 2015 for €33.28 million (source: Milan’s 2015 financial statement), signed a 5-year contract worth €3.5 million net, which equates to a gross figure of around €6.48 million. If Villarreal were to cover the entirety of the Colombian’s wages, as is possible, Milan would therefore save a considerable sum.
Therefore, Milan’s 2017/18 financial statement will see a positive impact of around €8.48 million.
Considering that the sale is not a permanent one, however, the club led by Marco Fassone will still have to take the amortisation of Bacca’s value – around €6.65 million – into account in their 2017/18 financial report. But, at the end of the season, when Villarreal decide whether or not to take up their option to buy the forward permanently, Milan could make a small capital gain.
This is due to the fact that, due to the amortisation that will be recorded in the 2017/18 financial statement, Bacca’s value will drop to €13.32 million. Therefore, if he were to be sold for €19 million, Milan could record a capital gain of €5.68 million in their next financial report.
But which financial report will it be recorded in? It will depend when (or indeed if) Villarreal take up their option. If they take up their option before 30th June 2018, Milan (as many Italian clubs, such as Juventus, Roma and Inter, did in 2016/17) could register this capital gain in their finances for 2017/18. In that case, the positive financial impact of the transfer on their finances would increase to €14.16 million.