There are some signs of improvement in the finances of Italian Serie A clubs with the overall level of club debt down, although it remains substantial. It is thought that Uefa’s financial fair play rules are having an impact on the financial discipline shown by clubs.
There are some signs of improvement in the finances of Italian Serie A clubs with the overall level of club debt down, although it remains substantial. It is thought that Uefa’s financial fair play rules are having an impact on the financial discipline shown by clubs.
Serie B, however, faces big challenges. Attendances are down 25 per cent this year to about 4,700 a game, fewer than the 6,000 average of the past five years. The most successful second tier league, the npower Championship in England, attracts an average attendance over three times as large as 17,200. Germany is not far behind on 16,000 and even Spain and France do better on around 6,300.
Yet Serie B’s wage bills are the second highest among second tier leagues in Europe. The circle is only squared because £55m or so is paid as a direct subsidy from Serie A. There is very little merchandising and league-wide sponsorship brings in less than £3m which has to be divided among 22 clubs.
A determined effort is now being made to bring wage costs under control. From next year a player can be paid no more than just under £5,000 a week, half in salary and half in performance bonuses (which can be generously interpreted such as turning up for training on time). If a club goes through the just over a quarter of a million pounds a year barrier, their solidarity payments will be cut on a euro for euro basis.
Squad sizes will be cut from 24 to 20 players over 21. This means that a club’s wage bill should be no more than £5m-£6m a year. Given the solidarity payments, central sponsorship and television money, a club just needs to find £2m-£3m a year from gate money and club sponsorship to break even.
Of course, for some players quarter of a million pounds a year will not be enough and they will try their luck abroad. There is also the issue of what happens to Serie A clubs relegated with hefty wage bills, but they will need to insert relegation clauses into their contracts. No doubt there will be plenty of implementation problems, and even attempts at evasion, but it is an interesting initiative.