Galliani gives an interesting view on the situation and i believe he has a point:
"Ricky did not want to go to Manchester City, but he would go to Madrid. There is no Chelsea solution: Kaka either goes to Real or remains at Milan. This is his will and we are doing all in full agreement. On Sunday Florentino Perez invited me to celebrate his appointment. We dined and then, I don't deny it, we spoke about Kaka. The negotiation exists, but the agreement has not been reached. The heart? We are talking about transfers, we all have a heart. However, the numbers have become such that even a great heart must face them and draw a balance. Kaka always behaved well with us, he never asked for improvements in his contract or extensions. He was here for six years, winning all there is to win. We cannot allow ourselves to lose €70m every year. The motivations of Kaka's departure would be economical: Real makes a profit almost double of Milan, they have their own stadium, does not divide the gate receipts and the TV rights with other teams, is helped by a fiscal regime which allows to offer the players higher wages, spending the same gross amount: two million become a million in the pockets of a player playing in Italy, one and a half in Spain. I don't want to be borng, but the root of the problem is economical: Italy lost its competitiveness and Serie A must fight so that it's not surpassed by other leagues, after losing ground to Spain and England."
Gazzetta