Palermo have clarified the sale of the Serie B club for €10. “It comes with the commitment to settle” €22.8m of outstanding debt.
The story hit the headlines all over the world when Maurizio Zamparini wrote in his farewell letter that he had sold Palermo to a London-based company for just €10.
Palermo have clarified the sale of the Serie B club for €10. “It comes with the commitment to settle” €22.8m of outstanding debt.
The story hit the headlines all over the world when Maurizio Zamparini wrote in his farewell letter that he had sold Palermo to a London-based company for just €10.
“In addition to Palermo, sold for the symbolic price of €10, Mepal – the company that owns the Palermo brand – has been sold to the new owners, who commit to settling Palermo’s outstanding credit, of €22,800,000, which will be paid into the company accounts in order to guarantee healthy economic management.”
Another statement was released this morning to clear up some of the misconceptions about this sale.
“We are satisfied to see the media attention all over the world for the sale of US Citta di Palermo, in line with the consolidated international prestige of our club.
“At the same time, it is important to point out that the sale figure of €10 – which prompted so much global curiosity – was symbolic and comes with the commitment to settle outstanding debt as well as the guarantee of solid economic management, as already highlighted in the letter by Maurizio Zamparini.”
Some of this story is also the reason Zamparini sold the club, as his accounting practices prompted confusion and an investigation.
Essentially, he proved Palermo were debt free by creating a company called Mepal, buying the ‘brand’ at a hugely inflated price, then loaning it back to the club for a minimal fee.
He vehemently denied that he was by-passing Italian financial fair play regulations or engaging in false accounting.