"With Tagetik 3.0, we can manage our planning and control processes as well as monitor the changing value of current and prospective players much more effectively. Using what-if analyses, we can now easily understand the financial impact arising from the sale of a player who won the Italian or Champions League. In addition, our financial controllers can manage our strategic planning as well as all official, regulatory and internal reporting within a single tool.” Alfonso Cefaliello, CFO at  A.C. Milan

The challenge

With 18 international titles, 29 national trophies, and a roster that reads like a ‘Who’s Who’ of today’s international stars, A.C. Milan is one of the most successful soccer clubs in the world.

Since the organization was founded back in 1899, however, much has changed in professional sports. Recruiting – and retaining – top players and trainers is a multi-million euro business. To offset these and other costs, the organization needs to carefully manage incoming revenues from sponsors, broadcasting rights, ticket sales, merchandising and other sources. These revenues, in turn, can vary greatly based on the team’s national and international performance during any given season.

As a member of the Fininvest Group, one of the world’s leading companies in media and entertainment, A.C. Milan must also regularly report its current finances to the holding. In addition, the club must create separate financial statements for both the Italian (Covisoc) and European (UEFA) Football Associations.

Objectives

In the past, A.C. Milan relied on Microsoft Office products for planning, forecasting, reporting and analysis. As the company’s needs for more accurate forecasts, faster reporting cycles and in-depth ‘what if’ analysis continued to grow, however, the organization saw the need to deploy new system for Corporate Performance Management.

A.C. Milan’s goal was to implement a single solution that could flexibly manage its changing internal and external requirements on financial information. In addition, it should seamlessly access its underlying SAP systems as well as other key applications, for example, which contain information on players’ performance.

After evaluating several leading CPM products including Oracle Hyperion, SAP Outlooksoft and IBM, the organization chose Tagetik 3.0 to unify its various performance management processes. In addition to its strong integration with Microsoft applications, the software also provides powerful auditing features such as the automatic production of notes as well as drill-down and drill-through options for tracking individual values.

Results

In a series of four different stages, AC Milan set off to unify the following processes into its Tagetik solution:

• Step 1: Financial planning, consolidation, financial close and data transfer to Fininvest
• Step 2: Standard reporting in compliance with UEFA and COVISOC guidelines
• Step 3: Performance and contract management for individual players
  

These first three stages were implemented within an 11-month time frame. Step 4, will integrate new information in management reporting and enhance budget-actual comparisons.  

After switching to Tagetik 3.0, A.C. Milan noticed an instant improvement in the quality of information. Users can now access and analyze a wide range of information in a single, reliable source and easily share it with others. Since the software automates many different processes – from producing regulatory reports to transferring financial data to Fininvest – users can eliminate duplicate tasks and save valuable time.

In addition, the organization has gained the insight it needs to effectively measure each player’s performance during individual matches of the Italian soccer league as well as prestigious tournaments such as the Champions’ League. A.C. Milan can now use this information to help quantify its current capital as well as test ‘what-if’ scenarios as part of its contract negotiations with new and prospective players.

About AC Milan

Associazione Calcio Milan, known internationally as A.C. Milan, is one of the wealthiest and most successful soccer clubs the world. The club, which was founded in 1899, holds a total of 18 international and 17 national titles.

A.C. Milan plays its home matches at San Siro, Italy’s largest stadium which seats over 80,000 people. Silvio Berlusconi, who currently serves as the Prime Minister of Italy, is the club’s president.

For more information about the club’s history, players and current season, please visit the organization’s official Web site at www.acmilan.com.

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