During the Palla in Tribuna program, broadcast on Radio Parma, the professor of the University of Parma Pierluigi Marchini, professor of business economics. On the balance sheet of Parma Calcio, published a few days ago (read HERE), expressed himself thus: “The business of football clubs most of the time has less than positive results, there is often someone behind it, the owner, who goes to cover the losses by guaranteeing business continuity. The costs (read HERE) of Parma are largely given by the costs of wages and salaries, which however do not represent the totality of the 109 million, which are divided between depreciation, which accounts for around 40 million, and then precisely wages and salaries which concern players and staff. Compared to other clubs, Parma discounts the revenues from Serie B, but is leaning towards another dimension, also in terms of youth sector and organizational costs. They certainly cannot all be balanced by the revenues of Serie A, but to date they have an impact because the club has a structure of absolute value for Serie B and is ready for higher levels.”
How much did Krause put into Parma?
“The ownership injected 360 million in liquidity which made it possible to support the financial outlays linked to the cost of the players and the cost of the price tag. There is talk of contributions by way of debt, initially the ownership paid these figures and the company took on a debt towards him. Once the losses of the previous year and the current year have been determined, the owner renounces having these amounts returned and they are automatically acquired as capital, no longer subject to repayment. This is used in the equity to cover the losses suffered in management, allowing for a positive net worth and guaranteeing business continuity”, (read HERE).
Does the president deserve to be praised?
“From what can be seen from the balance sheet, these are amounts that he has paid, not promises. Several presidents have done so, but from my experience not on this scale. The owners believe in Parma Calcio, compared to these 360 million there is only 1 .4 million debt to the banks, Krause invested his own money, in this size he has few equals in national football.”
Is this model sustainable? How long can it last?
“These are actually significant figures, it can last as long as the member has various resources, therefore it should be evaluated with reference to the member’s assets. This could last a long time, in the financial statements it is reiterated that the member has guaranteed over time to continue to contribute in case of need financial resources. At the moment the ownership is guaranteeing a superior category team structure even with a level of revenues that is linked to the series in which the team plays. It should improve when the team moves to better places”.
How much would another season in Serie B affect the coffers?
“Yes, comparable to the current ones. Sustaining a budget of this kind for so many years is heavy for everyone. A promotion would not be the panacea for all ills, but it would compensate for a situation which in this year could cause surprise due to the level of losses” .
What margins do foreign owners see in Italian football?
“There are few situations with balance sheets that create values in themselves, there is more of a balance between the notoriety that having a team brings, guaranteeing a spin-off for other types of investments. It is one of the strings in an entrepreneur’s bow which is diversifying into different sectors, football can represent a sounding board.”
READ HERE: Krause turns off the taps? The answer comes in the millions. With these investments you can dream big, there is no shortage of potential
