2004–10 Italian football scandal
2004–10 Italian football scandal is an football scandal regarding false accounting of Italian football club in 2000s. The investigation started in 2004 and the last sentence was announced in 2010.
In 2000s, many football clubs had been bankrupted due to the withdrew of their sugar-daddy by not recapitalizing the company, namely AC Fiorentina (2002), Monza (2004), S.S.C. Napoli (2004), Ancona Calcio (2004), AC Torino (2005), AC Perugia (2005), Como (2005), Reggiana (2005), Salernitana Sport (2005) and A.C. Venezia (2005). While Parma was administrated and re-found as Parma FC SpA. Previously some of the football club had use cross-trading of footballers to raise profit, sometime the deal did also benefited in the football field, but most of them benefited financially in short term but increased amortization expense in long term, till the end of the contract of the flopped footballer. In February 2003 special law was set up to allow the club to deferred the amortization expense Articolo 18-bis Legge 91/1981, in order to make the club avoiding recapitalization due to negative equity. However, clubs still made cross-trading of footballers in order to raise short-term profit in order to pass the financial test for 2003–04 season. Lastly, the law was considered unconstitutional in 2005 and the club had to recapitalize if necessary and remove the special amortization fund on or before 30 June 2007.
Other scandal also involving the dating of player profit. Hidetoshi Nakata was sold for 55,000 million lire in July 2001, and the deal was signed and documented on the same month. However, Roma documented the profit in 2000–01 season, defending that the deal was agreed before the end of financial year on 30 June 2001. Cross-trading deal was very common before 2003, for example, Colucci–Fontana (Roma–Verona, 12.5 billion lire), Mangone–Poggi–Gurenko for Fuser–Longo–Lassissi (Roma–Parma, 65 billion lire), Remain 50% of Matuzalém for unnamed mystery player (Parma–Napoli, 14 billion lire), remain 50% of Manuele Blasi for Giuseppe Cattivera (Roma–Perugia, 18 billion lire), Ginestra–Bogani (Milan–Inter), Frezza–Frau (Inter–Roma, 8.8 billion lire) in 2001; Greško–Almeyda (Inter–Parma, €16M), Sartor–Siviglia (Parma-Roma, around €9M), Coco–Seedorf (Milan–Inter, €29M), Bombardini–Brienza (Palermo–Roma, 50% €5.5M), Paoletti–Panarelli for Fontana–Frezza (Torino–Roma, 50% €10.5M) in 2002; Rubén Maldonado–Gonzalo Martínez in January 2003.
In a board sense, the scandal was the ending event of the era that the Italian media credited as doping amministrativo (doping[-like] administration), bilanciopoli (balance sheet scandal), plusvalenze fittizie or plusvalenze fai-da-te (DIY profit). Bologna president, Giuseppe Gazzoni Frascara, once declared his innocent and reported the false accounting to FIGC as it was not equal for his club. However, Bologna also involved in cross-trading such as remain 50% of Jonatan Binotto (10 billion lire) from Juventus for Giacomo Cipriani, Alessandro Gamberini and Alex Pederzoli in 2000 and Binotto to Internazionale for Fabio Macellari in 2001. Moreover, Bologna had used more radical means to increase share capital.
As FIGC failed to prove football clubs intentionally to flop the price of mature footballers, only deals involving youth players were punished.
|Martino Olivetti (50%) + €0.1M||Paolo Sammarco (50%)||€1.1M|
|Milan ||Internazionale |
|Matteo Deinite (50%) + €0.25M||Salvatore Ferraro (50%)||€1.75M|
|Matteo Giordano (50%) + €0.225M||Alessandro Livi (50%)||€1.725M|
|Ronny Diuk Toma (50%) + €0.25M||Giuseppe Ticli (50%)||€1.75M|
|Simone Brunelli (50%) + €0.25M||Marco Varaldi (50%)||€1.75M|
|Roberto Massaro (50%)||Marco Donadel (50%)||€2M|
|Filippo Porcari (50%)||Mirko Stefani (50%)||€1M|
|Luca Ferretti (50%)||Davide Favaro (50%)||€1M|
|Milan ||Sampdoria ||Fee|
|Ikechukwu Kalu (50%) + €1M cash||Luca Antonini (50%)||€2M|
|Emanuele Calaiò (redeem 50%)||Alessandro Cibocchi (redeem 50%)|
|Gonzalo Martínez (50%)||Alessandro Pierini|
|Andrea Sottil (50%)|
|Genoa ||Udinese |
|Mohammed Gargo (50%)||Valon Behrami (50%)|
|Vittorio Micolucci (50%)||Rodrigue Boisfer (50%)|
In another line, the liquidator of Como, however, pointed the failure of Como to Preziosi, which accusing the owner had transfer the asset of Como to Genoa as uneconomical price. While the liquidator of Fiorentina had found the date of player profit and cross-trading was also wrong in the balance sheet. Failure of Perugia was also under investigated. The fall of Spezia Calcio was also linked to previous owner Internazionale.
Moreover, a separate charged related to Brunelli's was exposed in 2007. Brunelli claimed the signature on the transfer document is not his and he know nothing when transferred from Milan to Internazionale. Brunelli was banned 2 months from football in although he is retired. Brunelli's agent charged was dismissed and Brunell sued Internazionale for negligence and forced him to retire was also dismissed. Lazio was acquitted in 2007 as well as Juventus. Roma was fined by the court of Rome.
In January 2007, the prosecutor exposed the alleged false account of Crespo (cash-plus player swap) and Domenico Morfeo (failure of Fiorentina) and ongoing investigation on Parma, such as Amauri was signed by Parma from Napoli as free agent but a massive agent fee was also paid. Amauri did not had EU citizenship and Italian clubs were common to buy non-EU registration quota from other clubs, however.
The following punishments were given to individuals:
- Enrico Preziosi 5-year ban
- Massimo D'Alma 3-year ban
- Aleardo Luciano Guido Dall'Oglio 6-month ban
- Genoa: €150,000 fine.
- AC Milan
- The Company: €90,000 fine.
- Adriano Galliani (Vice-President): €60,000 fine.
- The Company: €90,000 fine.
- Massimo Moratti (Owner) €10,000 fine.
- Gabriele Oriali (technical director) €10,000 fine.
- Mauro Gambaro (ex-CEO) €20,000 fine.
- Rinaldo Ghelfi (ex-CEO and by-then Vice-President) €20,000 fine.
- The Company: € 400,000 fine.
- Giovanni Blondet: €15,000 fine.
- Enrico Preziosi: Banned 4 months and €15,000 fine.
- The Company: € 400,000 fine.
- Pasquale Foti: Banned 1 month and €20,000 fine.
- The Company: € 400,000 fine.
- Franco Soldati (President): Banned 3 months and €30,000 fine.
- Pierpaolo Marino (by-then Vice-President): €15,000 fine.
- The Company: € 50,000 fine.
- Luca Campedelli (owner): € 40,000 fine.
- Giovanni Sartori (sports director): € 15,000 fine.
- The Company: €20,000 fine.
- Luigi Agarini (President): Banned 7 months
- Luca Ferramosca (President): Banned 6 months
- Giovanni Lombardo (CEO, Italian: Amministratore Delegato): Banned 3 months
- Stefano Dominicis(CEO, Italian: Amministratore Unico): Banned 6 months
Sampdoria denied any wrongdoing in Kalu–Antonini transfer. Zamparini, the president of Palermo, blamed the fine was heavy, as the cross-trading was under previous ownership (Sensi). The club just chose deferred to amortize the €10 million transfer fee of Franco Brienza (likes every other clubs on flopped signing prior 2002), instead of write-down €10 million immediately in order to reflect in 2002–03 financial year.
Fail to recapitalization and balance sheet related scandal was still occurred, namely Treviso, S.S.C. Venezia, Gallipoli Acireale, Pergocrema, all given heavy fine on board member of the clubs.
Some research had also stated the effectiveness of indicator by Covisoc to determine the financial health of the football club.
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