San Siro stadium demolition approved as AC Milan and Inter secure €197m deal with Milan city hall for iconic site and land to build new 71,500-seat arena

San Siro stadium demolition is now a step closer to reality after Milan city hall approved the sale of the iconic ground and surrounding land to football giants AC Milan and Inter Milan for €197 million.

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After more than 11 hours of heated debate, the vote passed in the early hours of Tuesday morning with 24 councillors in favour and 20 against, securing the clubs the rights to both San Siro and 28 hectares of adjacent land on the western edge of Italy’s financial capital.

The vote followed years of wrangling over redevelopment plans, threats by both clubs to leave the city entirely, and a failed public-private proposal in 2023.

The latest deal marks a significant shift, as the land is now being fully transferred into private ownership by the two Serie A teams, both of which are controlled by American investment funds.

The new €1.2 billion vision will see a state-of-the-art 71,500-seater stadium constructed on land currently used for parking and a public park, just west of the existing stadium.

Once complete, the original San Siro, affectionately known as football’s La Scala, will be almost entirely demolished and replaced with new green spaces, office buildings, and leisure facilities designed by Foster and Partners and MANICA Architecture.

Despite the approval, demolition is years away. Both clubs will continue playing at San Siro until at least 2031, when the new ground is expected to open.

The outcome wasn’t without controversy. The vote revealed deep divisions in city politics, with dissent across the spectrum.

Some left-leaning councillors in Mayor Giuseppe Sala’s governing coalition joined opposition parties in voting against the deal.

The hard-right League and Brothers of Italy parties opposed the move, while Forza Italia, the party founded by the late Silvio Berlusconi, abstained — a key factor in tipping the balance.

Critics raised concerns about the lack of detail in the proposal and claimed the €197 million sale price was too low for such prime real estate.

Others accused the mayor of circumventing local democracy to prevent the clubs from relocating outside Milan’s city limits.

Still, Sala defended the decision, positioning it as the only viable way to retain the historic clubs within Milan proper.

Inter and AC Milan must finalise the purchase by 10 November 2025, when a heritage protection order could come into force, potentially preserving the existing stadium and halting demolition.

The move also aligns with Italy’s ambitions to host Euro 2032 alongside Turkey.

UEFA requires nations to confirm stadium selections by October 2026, with work needing to begin by March 2027.

The new Milan stadium could strengthen Italy’s bid, given that Juventus’ Allianz Stadium is currently the only venue meeting UEFA’s hosting standards.

San Siro, which first opened in 1926, has hosted generations of footballing history, including World Cups, Champions League finals, and countless Milan derbies.

Its demolition will mark the end of an era for a stadium that has been as revered for its atmosphere as for its towering structure.

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Yet for the clubs, this transition offers a modern future, more commercial flexibility, and the promise of a long-overdue upgrade to match Europe’s elite.