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	<title>Comments on: Dire Financial Straits for Serie A; In Other News, the Sky is Blue</title>
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	<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html</link>
	<description>News from the Italian Serie A</description>
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		<title>By: Italy Would Like Their Taxes, Please - Serie A - The Offside - Soccer News and Opinion from leagues around the world</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-29737</link>
		<dc:creator>Italy Would Like Their Taxes, Please - Serie A - The Offside - Soccer News and Opinion from leagues around the world</dc:creator>
		<pubDate>Fri, 07 Dec 2007 19:00:53 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-29737</guid>
		<description>[...] Serie A books as well. Earlier this summer a list of financial results was released detailing the net profits/losses of all but 3 of the Serie A clubs during the 2005-2006 season. The study revealed an astounding total of €380m, spearheaded by the absolutely mind-boggling [...]</description>
		<content:encoded><![CDATA[<p>[...] Serie A books as well. Earlier this summer a list of financial results was released detailing the net profits/losses of all but 3 of the Serie A clubs during the 2005-2006 season. The study revealed an astounding total of €380m, spearheaded by the absolutely mind-boggling [...]</p>
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		<title>By: Martha</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13586</link>
		<dc:creator>Martha</dc:creator>
		<pubDate>Mon, 25 Jun 2007 21:09:24 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13586</guid>
		<description>Inara thanks for linking to that post, the combination of your research and the comments is really fascination. 

Funnily enough, Italy also have a system under which &lt;a href=&quot;http://italy.theoffside.com/serie-a/more-on-this-zomg-inter-are-going-down-thing.html&quot; rel=&quot;nofollow&quot;&gt;clubs&#039; books are surveyed&lt;/a&gt; to make sure they can afford to operate in the following year -- they&#039;re sanctioned for going under, but not for spending more than they take in. (Of course, clubs with essentially unlimited bank accounts can afford pretty much anything, even if they&#039;re operating deep in the red.)</description>
		<content:encoded><![CDATA[<p>Inara thanks for linking to that post, the combination of your research and the comments is really fascination. </p>
<p>Funnily enough, Italy also have a system under which <a href="http://italy.theoffside.com/serie-a/more-on-this-zomg-inter-are-going-down-thing.html" rel="nofollow">clubs&#8217; books are surveyed</a> to make sure they can afford to operate in the following year &#8212; they&#8217;re sanctioned for going under, but not for spending more than they take in. (Of course, clubs with essentially unlimited bank accounts can afford pretty much anything, even if they&#8217;re operating deep in the red.)</p>
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		<title>By: Martha</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13582</link>
		<dc:creator>Martha</dc:creator>
		<pubDate>Mon, 25 Jun 2007 20:15:45 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13582</guid>
		<description>Thanks, forza, I&#039;m glad you got something useful out of it. (And you&#039;re right, getting more bodies in the stands would certainly help.)

Thanks, as usual, for your insight tmc. (And I totally agree with you about Cassano, imho that would be a massive disatser, not to mention a horribly disappointing possible conclusion to a pleasingly rational transfer season.)</description>
		<content:encoded><![CDATA[<p>Thanks, forza, I&#8217;m glad you got something useful out of it. (And you&#8217;re right, getting more bodies in the stands would certainly help.)</p>
<p>Thanks, as usual, for your insight tmc. (And I totally agree with you about Cassano, imho that would be a massive disatser, not to mention a horribly disappointing possible conclusion to a pleasingly rational transfer season.)</p>
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		<title>By: Inara</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13581</link>
		<dc:creator>Inara</dc:creator>
		<pubDate>Mon, 25 Jun 2007 20:14:31 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13581</guid>
		<description>I think in financial matters, the big three leagues could take some lessons from France. French clubs are overseen by the DNCG, which examines all financial transactions made by professional football clubs and will sanction them if they run in the red (one of my readers summed it up perfectly in his &lt;a href=&quot;http://lyon.theoffside.com/team-news/lets-talk-about-money.html&quot; rel=&quot;nofollow&quot;&gt;comment&lt;/a&gt;. Granted, that means no flashy spending, but French football will never be fiscally unhealthy (it&#039;s possible to make profits too - Lyon&#039;s profits were 16m last year). 

It would be really great to see other leagues adopt a similar model, perhaps one not as strict as France&#039;s, but one with oversight that would keep clubs from financially collapsing.</description>
		<content:encoded><![CDATA[<p>I think in financial matters, the big three leagues could take some lessons from France. French clubs are overseen by the DNCG, which examines all financial transactions made by professional football clubs and will sanction them if they run in the red (one of my readers summed it up perfectly in his <a href="http://lyon.theoffside.com/team-news/lets-talk-about-money.html" rel="nofollow">comment</a>. Granted, that means no flashy spending, but French football will never be fiscally unhealthy (it&#8217;s possible to make profits too &#8211; Lyon&#8217;s profits were 16m last year). </p>
<p>It would be really great to see other leagues adopt a similar model, perhaps one not as strict as France&#8217;s, but one with oversight that would keep clubs from financially collapsing.</p>
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		<title>By: forza futbol</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13573</link>
		<dc:creator>forza futbol</dc:creator>
		<pubDate>Mon, 25 Jun 2007 19:18:16 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13573</guid>
		<description>Martha, once again a very insightful blog.  I&#039;m glad that Roma is trying to live within their means.  If they only could do something to get the crowds back into the stadiums.  Damn!</description>
		<content:encoded><![CDATA[<p>Martha, once again a very insightful blog.  I&#8217;m glad that Roma is trying to live within their means.  If they only could do something to get the crowds back into the stadiums.  Damn!</p>
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		<title>By: tmc</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13572</link>
		<dc:creator>tmc</dc:creator>
		<pubDate>Mon, 25 Jun 2007 19:08:48 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13572</guid>
		<description>It is hard to do this off of the top of my head, but here&#039;s my take on the Viola being in the red for the 2005-2006 season.  Obviously, the club has been fiscally responsible under the Della Valle regime, due to the cautionary tale of the financial woes at the end of the Cecchi Gori regime.  

The club&#039;s first season back in Serie A was the 2004-2005 season, where they narrowly escaped bouncing back to the Serie B (and of course proceeded to get mixed up in the Calciopoli scandal).  

In the summer of 2005, La Viola purchased Luca Toni from Palermo for 10 million Euros.  Also, Frey joined the club permanently that summer for an undisclosed amount (he played 2004-2005 with Fiorentina on loan from Parma).  Pazzini and Bojinov (for 13 million Euros) were also acquired in 2005.  As an aside, it is pretty crazy to see that they paid more for Bojinov than Toni.  Granted Bojinov was on some incredible form as a promising young player at Lecce, but clearly Toni was a great bargain at that price.  

The reason Firoentina was in the red at that point in time is they outlaid a bunch of money with the goal of improving the squad to get to a European placing, which they did at the end of the 2005-2006 season, qualifying for the Champions League. Now, I don&#039;t know how much that is worth to a club exactly, but I&#039;m positive that it is worth at least 20 million Euros to gain entrance to the Champions League.  This plan would have worked perfectly, except for the fact that the Calciopoli scandal delayed the eventual entry of Fiorentina into the Champions league for another 2 years.  Sometimes, you gotta spend money to make money.  

I also think this is why you have seen Fiorentina be so active on the transfer market this summer, as they are making the transition from being a club with big aspirations to a club on the verge of becoming a &quot;big&quot; club.  Now they can think about paying players higher wages than the previous 1.5 million Euros per season cap that was the cause of Luca wanting to get out of town.  I just hope they don&#039;t botch this too much and make too many changes.  I don&#039;t want to see them sell Pazzini, Bojinov and Reginaldo for Gilardino, who in my eyes is a winy punk who thinks he&#039;s better than Fiorentina.  These guys got the team to the point of the Champions League again (though the points penalty means UEFA Cup), lets run with this squad next year to see how they do and then make more changes should they be necessary.</description>
		<content:encoded><![CDATA[<p>It is hard to do this off of the top of my head, but here&#8217;s my take on the Viola being in the red for the 2005-2006 season.  Obviously, the club has been fiscally responsible under the Della Valle regime, due to the cautionary tale of the financial woes at the end of the Cecchi Gori regime.  </p>
<p>The club&#8217;s first season back in Serie A was the 2004-2005 season, where they narrowly escaped bouncing back to the Serie B (and of course proceeded to get mixed up in the Calciopoli scandal).  </p>
<p>In the summer of 2005, La Viola purchased Luca Toni from Palermo for 10 million Euros.  Also, Frey joined the club permanently that summer for an undisclosed amount (he played 2004-2005 with Fiorentina on loan from Parma).  Pazzini and Bojinov (for 13 million Euros) were also acquired in 2005.  As an aside, it is pretty crazy to see that they paid more for Bojinov than Toni.  Granted Bojinov was on some incredible form as a promising young player at Lecce, but clearly Toni was a great bargain at that price.  </p>
<p>The reason Firoentina was in the red at that point in time is they outlaid a bunch of money with the goal of improving the squad to get to a European placing, which they did at the end of the 2005-2006 season, qualifying for the Champions League. Now, I don&#8217;t know how much that is worth to a club exactly, but I&#8217;m positive that it is worth at least 20 million Euros to gain entrance to the Champions League.  This plan would have worked perfectly, except for the fact that the Calciopoli scandal delayed the eventual entry of Fiorentina into the Champions league for another 2 years.  Sometimes, you gotta spend money to make money.  </p>
<p>I also think this is why you have seen Fiorentina be so active on the transfer market this summer, as they are making the transition from being a club with big aspirations to a club on the verge of becoming a &#8220;big&#8221; club.  Now they can think about paying players higher wages than the previous 1.5 million Euros per season cap that was the cause of Luca wanting to get out of town.  I just hope they don&#8217;t botch this too much and make too many changes.  I don&#8217;t want to see them sell Pazzini, Bojinov and Reginaldo for Gilardino, who in my eyes is a winy punk who thinks he&#8217;s better than Fiorentina.  These guys got the team to the point of the Champions League again (though the points penalty means UEFA Cup), lets run with this squad next year to see how they do and then make more changes should they be necessary.</p>
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		<title>By: Martha</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13569</link>
		<dc:creator>Martha</dc:creator>
		<pubDate>Mon, 25 Jun 2007 18:44:21 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13569</guid>
		<description>Trust me, Mike, if I could use a Ducktales pic for every post, I would. Holy crap did I love that show.

(And I actually have no love for Cassano. That said? If this Inter thing happens, I will immediately find something lovable about him. Yes, I am a whore.)</description>
		<content:encoded><![CDATA[<p>Trust me, Mike, if I could use a Ducktales pic for every post, I would. Holy crap did I love that show.</p>
<p>(And I actually have no love for Cassano. That said? If this Inter thing happens, I will immediately find something lovable about him. Yes, I am a whore.)</p>
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		<title>By: Mike</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13568</link>
		<dc:creator>Mike</dc:creator>
		<pubDate>Mon, 25 Jun 2007 18:31:30 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13568</guid>
		<description>Ducktales, oo-oo. How long did you have that pic in the queue, waiting for a chance to use it?

Much more pleasing to look at than the &quot;chicken-dance while I grab my tighty-whiteys&quot; Cassano pic that you are so fond of.

You and your primadonna drama queens...</description>
		<content:encoded><![CDATA[<p>Ducktales, oo-oo. How long did you have that pic in the queue, waiting for a chance to use it?</p>
<p>Much more pleasing to look at than the &#8220;chicken-dance while I grab my tighty-whiteys&#8221; Cassano pic that you are so fond of.</p>
<p>You and your primadonna drama queens&#8230;</p>
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		<title>By: Martha</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13566</link>
		<dc:creator>Martha</dc:creator>
		<pubDate>Mon, 25 Jun 2007 18:26:01 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13566</guid>
		<description>tmc, I&#039;m glad you weighted in on this one because I&#039;d love to hear your take on the Fiorentina losses. I&#039;m a latecomer to the club and know nothing about the money behind it, but I can&#039;t imagine they can afford to bleed money like that. Or is their bankroll bigger than I think?</description>
		<content:encoded><![CDATA[<p>tmc, I&#8217;m glad you weighted in on this one because I&#8217;d love to hear your take on the Fiorentina losses. I&#8217;m a latecomer to the club and know nothing about the money behind it, but I can&#8217;t imagine they can afford to bleed money like that. Or is their bankroll bigger than I think?</p>
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		<title>By: tmc</title>
		<link>http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13565</link>
		<dc:creator>tmc</dc:creator>
		<pubDate>Mon, 25 Jun 2007 18:21:46 +0000</pubDate>
		<guid isPermaLink="false">http://italy.theoffside.com/serie-a/dire-financial-straits-for-serie-a-in-other-news-the-sky-is-blue.html#comment-13565</guid>
		<description>While this is troubling - you have to look at this kind of stuff from the perspective of who is spending the money.  I think it is fair to say that many of the &quot;big&quot; clubs have directors who have more money than they can spend, and it is not problematic for them to lose money on the squad.  

Obviously, it would be troubling for Inter to lose that staggering amount if Moratti were trying to run the team to make a profit.  I suspect he has other objectives that rank much higher than making money off of the squad - he has plenty of other ways to line his pockets.</description>
		<content:encoded><![CDATA[<p>While this is troubling &#8211; you have to look at this kind of stuff from the perspective of who is spending the money.  I think it is fair to say that many of the &#8220;big&#8221; clubs have directors who have more money than they can spend, and it is not problematic for them to lose money on the squad.  </p>
<p>Obviously, it would be troubling for Inter to lose that staggering amount if Moratti were trying to run the team to make a profit.  I suspect he has other objectives that rank much higher than making money off of the squad &#8211; he has plenty of other ways to line his pockets.</p>
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