Christian Pulisic’s new Milan contract to save club $3.9 million per season despite salary increase, thanks to one hidden benefit

Christian Pulisic is close to securing his long-term future at Milan, with a reported contract extension set to reward the American forward for his importance to the team. However, the new agreement could also deliver a significant financial advantage for the Italian club, creating an unexpected outcome despite the expected increase in Pulisic’s salary.

The proposed deal would keep Pulisic at San Siro until June 2031, extending his current agreement beyond its scheduled expiry in 2027. According to ESPN and Italian media reports, negotiations have progressed after months of discussions, with the renewal expected to provide stability for both the player and the club.

Since joining Milan from Chelsea in 2023 for approximately €22 million ($25.3 million), Pulisic has established himself as one of the club’s most important attacking players. He has recorded 44 goals and 28 assists in 141 appearances across all competitions, making a substantial contribution to Milan’s attacking output.

Reports indicate that Pulisic’s net annual salary will increase from €4 million ($4.6 million) to €5 million ($5.8 million), excluding performance-related bonuses. His existing contract runs until June 2027, meaning the proposed extension would keep him at the club through June 2031.

The renewal also reflects Milan’s determination to retain its key performers as the club plans for the coming seasons. Owner Gerry Cardinale and head coach Ruben Amorim have reportedly been keen to secure Pulisic’s future, particularly after the American regained his form following injury problems.

The hidden financial benefit behind the renewal

Despite the salary increase, Milan is expected to reduce Pulisic’s annual accounting cost from approximately €10.5 million ($12.1 million) to €7.1 million ($8.2 million) from the 2027-28 season. According to Calcio e Finanza, that represents a saving of around €3.4 million ($3.9 million) per season.

The key lies in transfer-fee amortization, an accounting process that spreads a player’s transfer cost across the length of his contract. Milan paid approximately €22 million ($25.3 million) to sign Pulisic from Chelsea, and the remaining accounting value of that transfer fee is currently contributing around €5.2 million ($6 million) to his annual cost.

By extending the contract until 2031, the Italian outfit can spread the remaining transfer value across a longer period. The annual amortization charge is projected to fall to approximately €600,000 ($690,000) from 2027-28, substantially offsetting the higher salary.

How Milan’s annual costs will change

Under the reported new terms, Pulisic’s net salary of €5 million ($5.8 million) would translate to a gross annual wage cost of approximately €6.5 million ($7.5 million), assuming the reported Italian tax benefits remain applicable. Adding the projected €600,000 ($690,000) amortization charge brings his total annual accounting cost to approximately €7.1 million ($8.2 million).

Compared with the previous estimate of €10.5 million ($12.1 million), Milan would save €3.4 million ($3.9 million) annually despite paying Pulisic more in wages. The financial impact could begin even earlier. Calcio e Finanza estimates that, assuming the new agreement takes effect midway through the 2026-27 campaign, Pulisic’s accounting cost for that season could fall to around €9.1 million ($10.5 million), a reduction of approximately €1.4 million ($1.6 million) compared with the previous annual figure.

The financial advantages accompany the 28-year-old’s continued importance on the pitch. The American has operated both on the wing and in a central attacking role under Amorim, offering the Rossoneri flexibility and a consistent source of goals and assists.

After injury problems disrupted his preparations, Pulisic has returned to the lineup and delivered important contributions in Serie A. His recent performances have strengthened the case for keeping him at San Siro for the long term.