MADRID, SPAIN - AUGUST 16: Kaka of Real Madrid signs autographs for fans at the end of Real Madrid training session ahead of their opening la Liga match against Valencia at the Valdebebas training ground on August 16, 2012 in Madrid, Spain. (Photo by Gonzalo Arroyo Moreno/Getty Images)
In a press conference Tuesday afternoon in Milan, Adriano Galliani, chairman of AC Milan, stated that his side will no longer pursue Real Madrid playmaker Kaká. The Italian team is worried about the taxes they will need to pay if the Brazilian player comes back to his former club: Italy has different legislation concerning players' wages and the amount of money the teams need to pay in taxes. Consequently, they see the cost of reacquiring their prodigal playmaker as outweighing the benefit of his return.
There were reports that suggested that Milan and Kaká were close to an agreement on a significantly smaller contract in order to facilitate his return to the San Siro. But Adriano Galliani consulted a financial expert in Italy who revealed that the team would have to pay about 10M€ a year--5M€ for Kaká's wages (significantly less than he receives in Madrid) and 5M€ in taxes--if the deal were closed. Kaká would accept a reduced salary--he receives 10M€ a year with Real Madrid--but the Italian team refuses to take on such a hefty financial burden for a player who might be finished.
That's why Adriano Galliani ruled out Milan's interest in the Brazilian player:
We have discarded the option of signing Kaká. We waited for the reports of a known Spanish financial expert. This report came in today and it recommended that we not make a move for him since it's too risky for us.
AC Milan sold Thiago Silva and Ibrahimovic to PSG in order to get those big contracts off their books. But the fans aren't satisfied after the team lost its first home match against newly promoted Sampdoria. It's obvious that the Italian team will need to sign some players before the transfer window closes, but Kaká doesn't seem to be on their shopping list anymore.