Rather odd about Milan, and Im glad Juventus is not listed but I thought for the past few years due to our lack of success we've been ending our financial records with red marks too
Buy on AliExpress.com
License for next season (4 Viewers)
- Thread starter Philipp00
- Start date
Buy on AliExpress.com
If a club has problems obtaining a new license it doesn't mean we will see Milan and Inter in Serie C1 next season. They will more likely have to pay the FIGC for bad financial management. If it's really bad they may get three points deducted.
If a club has really high debts the people who they own the money to can do two things. The first is to hope the club gets out of the red and pay the money at a later date. The second is to declare the club bankrupt. This will mean the company owning the club stops to exist. Most of the time a new company is started with the same name (Fiorentina did this), as a trick of continuing the club. This doesn't always happen though. The downside for the company's is that they will lose the money that the club owned them, and they will have a number of angry fans who will boycot them. So if a club goes bankrupt the companies who held the debts completely lost their fate in the people in charge. For this reason Inter and Milan will NEVER go bankrupt because their chairman are very good businessman.
If a club has huge debts and the companies who hold those debts no longer have fate in the people in charge, but they think the club can still be saved (thus meaning they will get their money back) the club goes into receivership. This means that independant people now run the club, and they will try to make it profitable again. This means that they will sell some players to generate money. This is not the main reason to sell the players though. The goal is to balance the finances, you do this by lowering the costs. Salarys are 70% of the costs. So it's very important to sell the top earners at the club, transfer money is not the most important.
So if for example Juventus would go into receivership, the first thing that would happen is that Del Piero would get sold. Even though Ibrahimovic is worth more they wouldn't sell him because he's an important player with low wages.
This was a very abstract explanation of club finances. I hope it's understandable, I found it quite hard to explain in English. Hopefully I've made it clear why some clubs go into receivership (Leeds) and some don't (Roma).
If a club has really high debts the people who they own the money to can do two things. The first is to hope the club gets out of the red and pay the money at a later date. The second is to declare the club bankrupt. This will mean the company owning the club stops to exist. Most of the time a new company is started with the same name (Fiorentina did this), as a trick of continuing the club. This doesn't always happen though. The downside for the company's is that they will lose the money that the club owned them, and they will have a number of angry fans who will boycot them. So if a club goes bankrupt the companies who held the debts completely lost their fate in the people in charge. For this reason Inter and Milan will NEVER go bankrupt because their chairman are very good businessman.
If a club has huge debts and the companies who hold those debts no longer have fate in the people in charge, but they think the club can still be saved (thus meaning they will get their money back) the club goes into receivership. This means that independant people now run the club, and they will try to make it profitable again. This means that they will sell some players to generate money. This is not the main reason to sell the players though. The goal is to balance the finances, you do this by lowering the costs. Salarys are 70% of the costs. So it's very important to sell the top earners at the club, transfer money is not the most important.
So if for example Juventus would go into receivership, the first thing that would happen is that Del Piero would get sold. Even though Ibrahimovic is worth more they wouldn't sell him because he's an important player with low wages.
This was a very abstract explanation of club finances. I hope it's understandable, I found it quite hard to explain in English. Hopefully I've made it clear why some clubs go into receivership (Leeds) and some don't (Roma).