What is the liquidity index of football and why it is so worrying for Serie A teams

The Coni Sports Guarantee Board accepted the Lega Serie A appeal on the liquidity indicator, the problem of many clubs.

No more Parma casesWho remembers that phrase? It was 2015 and Italian football was witnessing the failure – during the current season – of a club of A league, whose disasters had long been known (for those who wanted to see them …) as Uefa had already denied the ducals a license to participate in the Europa League the previous summer. Under the pressure that “not anymore“this”not anymoreIt really wasn’t there Figs introduced new parameters to respect the economic and financial balance of the clubs. Among these, theliquidity indicator (or index), which is causing a lot of discussion these days. Not only in the media, but also in the context of sports justice. Because the Serie A League appealed to the Coni Sports Guarantee Board for approval «of the National Licensing System for access to the 2022/2023 Men’s Serie A Professional Championship“. An appeal has been acceptedwith the annulment of the provision that provided for this indicator as a parameter for registration in the championship.

The CONI agrees with the Series A, not with the liquidity indicator

Claudio Lotito with Lorenzo Casini, president of the Serie A League

Claudio Lotito with Lorenzo Casini, president of the Serie A League

The battle in the field of sports justice was won by the Serie A League, which obtained the annulment of the contested measures of the Coni Sports Guarantee Board: “In partial acceptance of the appeal proposed by the Lega Nazionale Professionisti Serie A against the Official Declaration of the Italian Football Federation – FIGC n. 220 / A of 27 April 2022 by which publishes the resolution of the Federal Council of the FIGC of 26 April 2022 by which approves the National System of Licenses for the access to the Professional Championship of the Series A Masculina 2022/2023; the resolution of 26 April 2022 approving the National Licensing System for access to the 2022/2023 Men’s Serie A Professional Championship; The National Licensing Manual Series A 2022/2023 and any other related and presumptive act consequent annuls the contested provisions in the part in which the verification of the possession of the liquidity index requirement is foreseen in a previous period. at the end of the current financial year“.

What is the liquidity index?

But what is this slandered (sometimes also called index) liquidity indicator of liquidity? It is a parameter we are referring to measure the ability to meet short-term financial commitments, at least for 12 months. It is calculated using the ratio of current assets to current liabilities (basically what comes out in a year and what comes out in a year, basically) and is subject to Covisoc controls, the last of which was carried out on March 31st.

Who goes to the Europa League? How many Serie A teams qualify

Current assets “It includes cash and cash equivalents and receivables with a maturity of 12 months and consists of the following items: Cash and cash equivalents, Debts to customers, Debtors to subsidiaries, associates and parent companies, Tax debtors, excluding deferred tax liabilities, Debtors to specific sector entities. and accounts receivable from others“For current liabilities, however.”Ordinary and convertible bonds, Debts to shareholders on loans, except subordinated and unpaid, Debts to banks, Debts to other lenders, Advances, Debts to suppliers, Debts represented by credit instruments, Debts to subsidiaries, associates and parent companies, Debts debts, Debts to welfare and social security entities, Debts to specific sectoral entities, Other debts and lease payments maturing in 12 months“.

Gabriele Gravina, President of the FIGC

Gabriele Gravina, President of the FIGC

For the FIGC, this relationship had to be again decisive for obtaining the national license. At least, these were the intentions: if a club had not complied with the parameter set by the National Licensing Manual for registration for the following season, it would have risked not participating in the next championship. For the 2022/23 season, on April 26, the modification of the indicator was approved, which should be equal to 0.5. And the Serie A League opposed it.

Who does not respect the liquidity indicator of Series A.

Fresh and not fully recovering from the Covid-19 effect, the Serie A has to face a steady loss of budgets, which is why several clubs expected a less stringent restriction for the season. coming. Among the proposals on the table was a lower indicator (equal to 0.4) which, however, took into account the historical value of the staff. Instead, the FIGC chose to raise the threshold to 0.5, in addition with an immediate moment, because the litigation of Covisoc in case of non-compliance with the planned threshold “.will take place on June 14, 2022That is to say, tomorrow, with a few more days scheduled to resolve any imbalance situation.

Lazio delivered liquidity impact documentation at the last minute

Lazio delivered liquidity impact documentation at the last minute

There are those who already knew that they were not in order, such as Lazio, who waited until the end of the ruling of the Sports Guarantee Board before evaluating a possible settlement (the figure should be around 5 million euros), as others have already done. companies before the date of the hearing in Cuneo. However, this is not the first time the Capitolines have faced this problem. Already last year the Lotito club, both in the summer and in January, was blocked in the transfer market, as well as Sampdoria, having to resign to be back in line with the set parameter and then start the campaign of signings. In fact, precisely in those months, the liquidity indicator had almost become a slogan in the interviews of Lazio ds Tare and coach Sarri, who in the vicinity of each market session recalled how Lazio had to fall within the parameters before you can operate. by ticket.

Because Serie A has called for a change of rules

Except that, both a year ago and the year before, the liquidity indicator was not included in the parameters set out in the National Licensing Manual. The threshold, which was even higher than the current one (0.8 in 2020/21 and 0.6 in 2021/22), caused the “non-admission to player registration rights acquisition operations“. Market blockade, that is, without jeopardizing registration for the championship. There are those who have avoided it with capital increases and there are those who have waited to sell their precious pieces to put in the liquidity needed to make incoming transactions. For next season, however, the ratio of current assets to liabilities had returned to the parameters required to obtain the license. It was precisely because Serie A opposed it. And the Coni Sports Guarantee Board was right.

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