Entering the arena imples a continuous commitment to comply with a wide array of rules and disclosure requirements
Italian football is currently a magnet for international investors, thanks to its rich history, passionate fanbase, and global commercial appeal. Yet, while the dream of owning a professional football club in Italy may be enticing, the process is far from straightforward. According to Luca Ferrari , partner and Global Head of Sports at the UK-based lawfirm Withers, there are several issues and caveats to be aware of before walking into the arena.
“Football investments in Italy come with bureaucratic hurdles, financial obligations, and strict regulatory frameworks that can make or break a deal” warns Ferrari. The Italian Football Association (‘FIGC’) has indeed a tight grip on club ownership and acquisition to ensure financial transparency and sporting integrity. “FIGC regulations set out stringent requirements for anyone acquiring more than a 10% interest in a professional club. Purchasers must demonstrate compliance with certain honourability requirements, proving they have neither past convictions for some serious crimes, nor have been a director or shareholder of a club that either went bankrupt, or lost its club licence or were excluded from competition in the past five sporting seasons”.
But integrity is not enough. “They must not have acquired and subsequently sold an Italian professional club during the same period. Moreover, financial strength requirements must be guaranteed through a creditworthiness letter” adds the partner of Withers. Failure to deposit the documentation proving compliance with such requirements within 15 days from the closing date may result in substantial financial penalties (of up to Eur 200,000); while more severe violations may result in points deductions for the club, a nightmare scenario for any new owner.
For foreign investors, the compliance process could be complex. “They must provide a criminal record certificates equivalent to the Italian “certificato del casellario giudiziario” and “certificato dei carichi pendenti” issued no more than 15 days prior to the closing date to prove they have not committed certain serious crimes. These documents are to be issued by the relevant authorities in the investor’s country of residence and accompanied by a sworn translation into Italian” states Ferrari. In some jurisdictions, obtaining these certificates can be a bureaucratic hurdle that requires careful planning. Bearing this in mind, foreign investors should begin the compliance process as early as possible to avoid any unexpected roadblocks.
Another crucial regulatory aspect that investors must consider is the regulatory framework on multi-club ownership. FIGC rules prohibit any individual or entity from holding a stake, managing, or having direct or indirect control over multiple professional clubs. “However, the rules do allow ownership across the professional and non-professional football, provided that if the non-professional club secures promotion to a professional division, the investor must resolve the ownership conflict before the start of the subsequent sporting season” Ferrari told BeBeez International.
In any case, before finalising the deal, it is necessary that investors start a thorough due diligence process, to help identify potential liabilities and assess the true financial strength and operational health of the club. “Key focus areas should include the club’s financial stability, with special attention to debt levels and sponsorship revenues, as these directly impact long-term sustainability. Player contracts must also be carefully reviewed to understand wage structures and financial commitments, while stadium ownership and lease agreements require scrutiny, as most Italian clubs play in City-owned stadiums, what potentially caps revenue opportunities. Representation agreements with agents can also be a significant expense and should therefore be analysed to assess outstanding debts” adds Ferrari. A well-executed due diligence process not only prevents costly surprises but also provides the necessary insights to structure a strategic and sustainable investment.
Some investors may think that once they have signed on the dotted line, all the hard work is over. In reality, acquiring an Italian club is just the beginning of a highly regulated path. While the acquisition process comes with its fair share of challenges, the real test lies in running the club within the intricate framework of financial, organisational, and sporting regulations.
“Each year, every club in Serie A, B, and C must apply for championship admission under the Sistema Licenze Nazionali (i.e. the Italian club licensing system), demonstrating compliance with strict criteria that ensure the club’s financial strength, organisational stability, and sporting sustainability. This is not just a bureaucratic box-ticking exercise; but rather a comprehensive regulatory framework designed to protect the integrity of Italian football”.
Compliance with FIGC regulations requires clubs to submit, periodically, a steady flow of financial documentation, including annual balance sheets, six-month financial reports, interim financial statements, and financial forecasts. “On top of this, clubs must prove, at multiple checkpoints throughout the sporting season, that they have satisfied all tax and social security obligations and have paid player salaries on time. Missing just one single deadline may result in significant sanctions, ranging from fines to points deductions from the standings or transfer bans” warns the partner of Withers.
But financial compliance is just one piece of the puzzle. “Clubs must also meet infrastructure and sporting requirements, ensuring they have the facilities, staffing, and youth development systems in place to support the long-term growth of the club” concludes Ferrari.
In short, acquiring and owning a club in Italy is far more than just a financial investment or a passion project: it is an ongoing commitment to navigating a structured and heavily regulated industry ecosystem. The road may not get easier after the deal is done, but those who prepare for the long game will be best placed to turn their investment into a lasting success.
