AC Milan vice-president Adriano Galliani has admitted the club cannot compete financially with Manchester City in the race to sign Ronaldinho.
Galliani said Milan and other Italian clubs are being squeezed out of several transfer moves as clubs in England, Spain and Germany have more money to spend.
“I cannot ignore that Italian football is now in fourth position in Europe behind England, Spain and Germany,” he said in Gazzetta dello Sport.
“We simply cannot compete with certain figures anymore.
“Manchester City have offered the Brazilian (Ronaldinho) €12m a year. We can only compete with that if they (Barcelona) give him away for free.”