Italian FA Looking to Introduce Soft Salary Cap to Limit the Spending

Yesterday’s federal council has agreed in principle to a new rule to try to contain the debt of Italian teams by inserting a soft salary cap. The clubs that want to increase their payroll will have to present a suretyship to demonstrate that their investments are sustainable. The norm should be ratified in the next assembly and come into effect as soon as this summer, La Gazzetta dello Sport reports.

The modification will encourage sides to decrease the wages-bill over three years, as the quota will gradually go down to 80 percent of their current one. Those who do not provide the necessary bank guarantees will not be allowed to operate in the transfer market.

Suretyships are common instruments as Italian outfits need one to register to their respective divisions every season. They are set to face increased financial scrutiny, and the Federation will not allow excessive spending without proper funding. The measure will also limit the use of the so-called plusvalenze, especially those related to youngsters, who are often swapped with bloated price tags to benefit the balance sheets. There will be routine check-ups of the solidity of the ownership and the amount of debts.

The norm will not significantly alter the plans of the top teams, which were already looking to cut some costs after the pandemic, but it will force them to trim their rosters. For instance, Inter are looking at a €50M increase simply because of the loanees coming back and some possible extensions, like Lautaro Martinez’s one. The rule change will accelerate the departures of underutilized players with sizeable wages.