Let's take Lega Serie A as an example.
Aggregate losses of Serie A clubs in the last 10 years: €10 billion
Inter € -963.8 M
Milan € -910.7 M
Roma € -834 M
Juve € -591.3 M
Napoli € -28.4 M
Lazio € -21.1 M
Fiorentina € -18.8 M
Società Sportiva Calcio Napoli and S.S. Lazio have closed four of the last ten years in profit.
ACF Fiorentina has closed three of the last ten years in profit.
So yes, a football club can make a profit.
Why doesn't this happen more often?
✅ The wages/turnover problem
Personnel costs impact over 70% of the revenues of Italy's top teams.
In 2022, the wages/turnover ratio was 84% for Juventus Football Club and 82% for FC Internazionale Milano.
Would clubs win more by lowering the wages/turnover ratio?
My personal opinion is that after a certain threshold, say 55%, it is smarter to allocate funds to improve other areas of the club.
👉 Branding, digitalization, infrastructures, player development, reducing debts, increasing fandom.
✅ The risks of going bankrupt are real
In Italy since 2000, nearly 180 clubs have gone bankrupt including Napoli and Fiorentina.
Like it or not, sustainability will increasingly be the number one priority of every club owner.
The alternative is continued losses that can lead to club bankruptcy.
data: PwC; Calcio&Finanza
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