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Italy’s Football Crisis Sparks Radical Reform Plan

Italy has once again failed to qualify for the World Cup for the third consecutive edition, a failure that exposes an even deeper crisis — one caused by several factors — and makes it more urgent to implement measures to counter the decline of football in one of the world’s most traditional football nations.

Italian clubs record annual losses of more than €730 million and have accumulated debts of around €5.5 billion, while visibly losing competitiveness at European level. Added to these difficulties are other challenges: outdated infrastructure and serious problems in the development of domestic talent. For example, only 1.9% of minutes played in the top divisions were by Italian under-21 players eligible for the national team.

It is in this context that senator Paolo Marcheschi, from the Fratelli d’Italia party, has put forward a proposal to reform the entire football system, with three main ideas on the table, according to the website Calcio e Finanza:

What changes are coming?

Television rights linked to sustainability

The bill proposes that at least 15% of television rights revenues be distributed based on sustainability and youth football development indicators.

The so-called Enhancement and Sustainability Parameters (PVS) are divided into four areas: development of male and female youth sectors, weighted at 50%; financial sustainability, weighted at 30%; use of players trained in Italy, weighted at 10%; and infrastructure quality, also weighted at 10%.

These measures aim to reward clubs that invest in young players developed in Italy, maintain balanced finances, and improve their stadium infrastructure.

Another 5% of audiovisual revenues would be allocated as a bonus to clubs that report profits or balanced accounts for at least three consecutive years.

Piracy and betting to increase revenues for the system

There are also measures designed to increase sector revenues, particularly regarding audiovisual piracy and sports betting.

Regarding piracy, the initiative proposes that 10% of AGCOM fines collected from violations involving illegal distribution of protected content would go into a FIGC fund aimed at strengthening youth categories and grassroots sports facilities. This measure could generate around €1.5 million per year.

The fund’s resources would help finance investments in youth teams, football schools, youth and amateur sports facilities, training programs for coaches and executives, among other areas.

As for sports betting, the proposal establishes a contribution of 2% of the amount wagered on every football betting operation carried out in Italy.

The measure would generate an estimated €224 million in annual revenue, considering an annual betting volume of €16 billion, of which 70% is related to football (€11.2 billion).

These resources would be allocated to the FIGC according to the following distribution logic:

Young players with tax benefits and new insurance system

There are also tax-related measures for young professionals: athletes aged between 18 and 23 who have played in the youth systems of Italian clubs for at least five years will benefit from a 30% reduction in social security contributions during their first five years as professionals.

The measure would bring several benefits, particularly for clubs investing in players trained in Italy, while also helping increase employment in the football industry and promoting greater stability in first professional contracts.

The estimated cost is around €15 million per year.

At the same time, clubs will also be required to protect their athletes with private insurance policies covering temporary disability, permanent disability, medical expenses, and permanent withdrawal from sporting activity due to injury.

This system would replace INAIL coverage for professional athletes, meaning employers would be exempt from paying contributions under the current scheme.

At least 10 players aged 15 to 21 in Serie A and Serie B youth squads

To strengthen the youth player base, the proposal introduces a requirement for Serie A and Serie B clubs: at least 10 players aged between 15 and 21 must be called up for youth-level matches, regardless of nationality, provided they have trained for at least three years at Italian clubs.

Failure to comply could lead to sanctions including fines, exclusion from competitions, and administrative penalties ranging from €10,000 to €50,000 per match in breach of the rules.

Italian under-23 players partially excluded from financial control rules

The package of measures also proposes that 50% of the costs associated with Italian under-23 players be partially excluded from financial sustainability regulations.

Financial control mechanisms would no longer account for expenses related to transfer fee amortisation, salaries, additional costs, and social contributions, but under certain conditions: the player must have been registered for at least one season, participated in at least 25% of the first team’s total minutes, and the club must have a regular tax and contribution status.

Changes to VAT on transfers and limits for agents

The proposal would also impact the domestic transfer market through the introduction of a reverse-charge VAT mechanism: the purchasing club would become responsible for paying the tax linked to acquiring a player’s registration rights.

The measure aims to simplify clubs’ financial management and reduce cash-flow imbalances related to domestic transactions.

There are also new rules for sports agents, particularly regarding commission limits: commissions may not exceed 5% of the gross transfer value, while loan deals would be capped at 3%. The measure could save clubs around €100 million.

Creation of a transfer guarantee fund

A transfer guarantee fund would be created within the Istituto per il Credito Sportivo (Institute for Sports Credit), designed to guarantee the payment of debts arising from player sales between Italian clubs in cases where the buyer defaults.

This fund would be financed through a mandatory contribution equal to 0.3% of the total value of transfers from the previous season, as well as other contributions.

The creation of this fund would eliminate the requirement for collateral in transfers between Italian clubs involving instalment payments. In the event of default, the selling club could access the guarantee fund and impose sporting sanctions.

Serie A, B and C limited to 80 clubs

Currently, Italy’s professional leagues consist of 100 clubs divided between Serie A (20 clubs), Serie B (20 clubs), and Serie C (60 clubs divided into three leagues). However, the proposal foresees a reduction to 80 clubs.

This reduction would be determined by the FIGC and would help reinforce the competitiveness and sustainability of the industry, weakened by excessive fragmentation and a long history of bankruptcies and crises among clubs: over the last 30 years, nearly 200 clubs have been excluded from professional football.

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