There are reports Manchester City have lowered Mario Balotelli’s asking price to €28m, while Milan are working out a payment plan for Kaka.
“Balotelli? We can talk about it if that price drops. Up until last night it was staying firm at €37m  and at these conditions it is impossible,” said Vice-President Adriano Galliani on Saturday.
Today La Gazzetta dello Sport claims that Manchester City got the message, so are willing to reduce the price-tag to €28m – approximately £23.5m.
It is also suggested that the Premier League club accepted a plan to spread the payment in six instalments, so allowing Milan to still balance the books.
Meanwhile, Galliani is still in negotiations with Real Madrid to bring back Kaka and there could be developments here too.
It is reported that Milan consulted with an economic expert in Spain to find a loophole in the tax laws, allowing the Italians to take on Kaka’s contract during a loan period without paying extra on his wages.
Kaka will still have to agree to halve his wages, but the difference will be between the net and gross sum Milan are to pay up.
Galliani has complained for many years that Spanish clubs have the advantage in the transfer market because their tax laws allow for much larger net wages.