Liquidity Index expands Serie A influence, can block registration

Gabriele Gravina Italy

The Liquidity Index, which so irritated Lazio coach and former banker Maurizio Sarri, will not only dictate whether Serie A clubs can buy players, but even if they can register for the new season at all under new plans.

The news was announced by FIGC President Gabriele Gravina in a press conference this evening.

“The liquidity index will rise up to 1 over the course of three or four years,” said Gravina.

“It is no longer an index that will prevent or allow clubs to operate on the transfer market, but instead is tied to their admission to the league.”

Lazio have already been vocal in their annoyance with the liquidity index, as both in the summer and the January transfer window, they could not sign any players – even free agents – until someone else had left or President Claudio Lotito increased the capital with fresh funds.

Former banker Sarri surprised many by declaring live on television that he didn’t “understand what on earth this thing even is.”

Essentially, the liquidity index calculates how long it would take for a company to convert assets into cash, and is used by analysts to evaluate creditworthiness.

There are already very strict checks on financial stability before clubs are allowed to register for the Serie A, B or C campaigns.

This regularly causes some to be declared bankrupt in the summer when they are not given permission to register due to outstanding debts.

The liquidity index has been criticised, as clubs like Lazio are penalised whereas sides with far higher debts do have more liquidity and therefore freedom on the transfer market.

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