AC Milan are back on track and heading in the right direction following the contract extension of Stephan El Shaarawy, according to vice-president Adriano Galliani.
El Shaarawy, 20, has been one of Milan's most consistent performers this season and the Serie A club made the move on Thursday to tie the striker down for a further year, until 2018.
Galliani believes the move is a sign that the Rossoneri's new policy of promoting youth and lowering the wage bill, named 'Milan for the Milanesti', is on the right track.
"We've got back on track very quickly," Galliani told Sky Sport Italia. "Having lowered the age of the team (last summer) we now do not need to sell our best players.
"Milan had to lower the wage bill. Now we're balancing our books. Our fans understand this project and that you need to make sacrifices."
Milan can move back into third position in Serie A with a win over Lazio at the weekend, and Galliani says the hard work at the club in the past few months deserves credit following a worrying start to the season.
"We were second from bottom in the beginning of the season and now we're fighting for third spot. We have been working hard in the past two months and our coach (Massimiliano Allegri) has been great," he said.