Lazio are awaiting Covisoc’s ruling on the club’s financial statements. The nightmare of a frozen transfer market this summer must be put to rest immediately. The email that the club will send to the regulatory body tomorrow contains all the documents to be scrutinised, on which the Biancocelesti’s ability to operate freely in the next transfer window will depend. Lotito’s club is required to demonstrate in its accounts that it has maintained the financial balance required by the federation’s regulations.
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Lazio, keep an eye on the finances: documents are due to be submitted tomorrow to determine whether the transfer window will be given the green light this summer
THE PARAMETER
In the past, the main criterion was the liquidity ratio. Alongside this parameter, debt levels and the broader labour cost – that is, the ratio of expenditure on wages, depreciation and amortisation to total revenue – also carried significant weight. The latter is the only criterion that remains in force following the latest revision of the regulations at the start of this season. The checks are based on financial statements updated to the first quarter of the year. The verdict, however, will not be announced until May. The threshold to be met this year has been lowered to 0.7 (last season it was 0.8).
RISKS
Lazio are well aware of the risks involved in exceeding the limits. Last summer, in fact, the Rome-based club, having failed to meet all three of the parameters required at the time, saw its transfer window completely frozen, with no possibility of signing players even in the event of sales. It was not even possible to renew contracts last August. A situation that inevitably affected technical planning, as well as subsequent financial planning, including the January transfer window. However, the regulations also provide for the possibility that the transfer market, whilst not blocked, may remain at ‘zero balance’. This is a less severe measure, but one which nevertheless means it is impossible to register new players without first having received the necessary funds from sales. This procedure remains in place until the club returns within the limits, with further restrictions in the event of repeated breaches.
TRUST
However, the club in Formello insists that everything is in order this time. The winter transfers have given the club’s finances some breathing space. Furthermore, Under-23 players must be excluded from the calculation of the cost-to-revenue ratio. This is why, in January, the club chose to focus on emerging young talents such as Przyborek and Motta to bolster the squad. Tomorrow’s audit, regarding which there is a sense of optimism within the club, therefore represents a crucial turning point: not only will the club’s freedom of movement in the transfer market depend on it, but also the credibility of the rebalancing and rejuvenation process that has been undertaken.
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