PLAN TO OVERSEE FOOTBALL CLUBS FINANCES IN ITALY
The Italian plan to establish an independent Commission to oversee the financial budgets of football clubs has met with strong opposition, both domestically and internationally, and has led to tensions between the Government and FIFA and UEFA, the World and European Governing Bodies of football.
FIFA and UEFA have unequivocally voiced their objections to this plan, based on their fundamental principle of prohibiting Governmental interference in the operations of national federations, breaches of which can lead to the exclusion of football clubs from their competitions.
The Government decision to intervene in sports budgeting stems from a series of financial and regulatory issues involving prominent football clubs in recent years. Among the most notable is Juventus, which has faced serious consequences due to accounting irregularities.
In this context, the Italian Government considers that stricter oversight is essential to ensure the financial sustainability of professional sports including football. However, the Italian approach conflicts with the FIFA and UEFA rules, even though there are precedents, such as in the United Kingdom, where an Independent Regulator for English football is being introduced without any objections from FIFA and UEFA.
The planned Commission is designed to act as an independent body responsible for monitoring the accuracy of club financial budgets and proposing corrective measures to mitigate or neutralise the impact of extraordinary financial operations. In doing so, the Commission will have intrusive powers, such as conducting inspections at club premises and requesting information about those directly or indirectly controlling the clubs.
Criticism has focused on two main issues: the risk of conflict with international sports governing bodies; and excessive bureaucratic complexity in decision-making processes.
The mandatory inclusion of institutional figures, such as the President of Istituto Nazionale della Previdenza Sociale (the Italian Pensions Authority) and the Head of the Agenzia delle entrate (the Italian Tax authority), to lead the Commission, has raised concerns about the Commission’s real independence.
As mentioned, the Italian Government plan aims to ensure transparency and economic stability, addressing the financial challenges that have plagued Italian football in recent years. However, its implementation risks provoking institutional disputes and undermining the autonomy of sports, a fundamental principle.
Thus, the Italian Government faces a delicate challenge: balancing the need for control and transparency with adherence to international regulations and respect for the independence of sports federations.
The expected date for the Commission to begin its operations is 1 July 2025.
The eventual outcome of this controversy could significantly shape the future of sports management in Italy!
For further information, please email Sara Botti, the Head of our Italian Law Practice Group, at ‘botti@valloni.ch’.