Pedro’s transfer from Roma to Lazio allows both rival clubs to resolve their respective problems in one fell swoop, as tax breaks are maintained.
The Spanish veteran was not in Jose Mourinho’s plans and hadn’t even been invited to pre-season training, so it is clear he was on the transfer market.
Finding another club was proving tricky, but Maurizio Sarri is ready to welcome him across the city to Lazio, a reunion after they worked together at Chelsea.
Sportitalia and Sky Sport Italia explain the financial reasons behind this transfer and why it will technically be free.
Lazio have no liquidity right now, so are unable to register new signings unless President Claudio Lotito puts circa €10m into the club coffers.
This could either be an increase in capital or a loan to the club that must be repaid.
Roma did not want to sell or loan Pedro abroad, as that would mean losing the tax breaks allowing his wages to be sustainable and cost Roma €3.5m in extra taxes.
This is also why Pedro will not terminate the contract before moving to Lazio, as instead he will move practically for free across the city.
That way he keeps the tax breaks, as do Roma, on a salary worth €8m, and Lazio can bring in a new player without any transfer fee.
These tax breaks were designed to bring foreign talent back into Italian business and have also been used wisely by football clubs to offer larger salaries than they otherwise could.