FISCAL FAIR PLAY IN ITALIAN FOOTBALL
A recent Decision of the Italian National Federal Tribunal (TFN), Disciplinary Section, has imposed upon Italian Football Club Brescia Calcio (Brescia) a sporting sanction consisting of an eight-points deduction, to be partially served during the 2024/2025 Serie B season (four points) and, for the remainder, during the 2025/2026 campaign.
As well as this disciplinary measure, a six-month disqualification has been imposed upon the top executives of Brescia, Massimo Cellino (President) and Edoardo Cellino (CEO).
These sanctions are the result of unlawful fiscal and social security-related practices, deemed capable of undermining both the competitive integrity and managerial transparency of the professional football ecosystem.
The disciplinary action originated from a COVISOC (the Italian Football Watchdog) Report dated 17 May 2025, which identified Brescia’s failure to comply with its obligations concerning the payment of withholding tax (IRPEF) and social security contributions (INPS) for the months of November and December 2024, and January and February 2025, totalling €1,885,161 (around Sw. Frs. 1,762,745).
These payments were only ostensibly fulfilled through the filing of F24 forms, wherein the liabilities were offset against tax credits acquired from third parties. Specifically, Brescia relied upon credits provided by Gruppo Alfieri SPV, an entity which, as later established by the Italian Revenue Agency (ADE), lacked actual entitlement to such credits. The credits in question were subsequently found to be non-existent or unlawfully compensable, thereby rendering the Brescia’s fiscal position substantively non-compliant.
The mechanism employed by Brescia constituted a violation of Article 17 of Legislative Decree No. 241/1997, which governs horizontal tax offsetting. Under that provision, set off is permissible only where the debtor and the holder of the credit are the same legal entity. In the present case, Brescia utilised VAT credits purchased from a third party, which had not accrued such credits itself, nor fulfilled the statutory prerequisites for valid set off.
According to the ADE, the artificial nature of the transaction was evidenced both by the fragile structure of the assignor, a recently incorporated special purpose vehicle with minimal share capital, and by the ineffectiveness of the transaction in extinguishing Brescia’s tax debt. As a result, notwithstanding the formal production of payment receipts, Brescia’s obligations towards the Italian Department of the Treasury and INPS remained unfulfilled in substance.
Following the conclusion of the fact-finding inquiry, the Federal Prosecutor referred Brescia and its senior executives to TFN, alleging breaches of Articles 4, 31, and 33 of the Code of Sports Justice, in conjunction with Article 85 of the NOIF (Internal Organizational Rules of the FIGC (Italian Football Federation)).
A pivotal factor in the determination of the sanction was the direct responsibility of the senior management of Brescia. The TFN found that Massimo and Edoardo Cellino had acted with gross negligence in engaging a third-party intermediary, Gruppo Alfieri SPV, without exercising due diligence as to the legitimacy and enforceability of the credits in question.
Despite prior red flags issued by both COVISOC and ADE—which had previously raised concerns over similar operations involving other clubs—the executives persisted with the same strategy, failing to implement any contingency measures or to suspend relations with the questionable credit provider.
The absence of a backup plan, coupled with the continued reliance on an irregular mechanism, aggravated their position, even in the absence of direct intent (dolus), and warranted a temporary disqualification pursuant to Article 19 of the Code of Sports Justice.
The Tribunal placed particular emphasis on the afflictive nature of the sanction, in line with established jurisprudence concerning financial misconduct in sport. The notion of a “symbolic” point deduction (for example, 2+2 points) was expressly rejected, as such a measure would likely have proven ineffective in terms of competitive impact.
The immediate deduction of 4 points in the current season effectively resulted in sporting relegation to Serie C, whilst the remaining 4 points, enforceable in the subsequent season, would serve as a sustained deterrent.
This approach is consistent with the objective of preserving fair competition and preventing surreptitious circumvention of fiscal obligations, which erode the level playing field amongst football clubs.
The TFN decision sets a notable precedent in the field of sports justice, reaffirming that the actual fulfilment of tax and social security obligations constitutes a non-negotiable precondition for legitimate participation in professional sports competitions.
The consequences for Brescia are immediate and severe: relegation to Serie C (barring an appeal); a competitive handicap for the forthcoming season; and the temporary ineligibility of the executives to hold any official positions. More broadly, however, the Brescia case serves as a cautionary tale for all professional sports clubs that fiscal and contributory transparency is not merely a matter of ethical compliance, but a fundamental legal requirement for sporting integrity.
We act in all legal and fiscal aspects of Italian football, including disputes, and further information may be obtained by emailing the Head of our Italian Desk, Avv. Sara Botti, at botti@valloni.ch.