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Fiorentina joins club of teams forced to embrace austerity

by Marco Bellinazzo

Fiorentina is also among the group of teams in the Italian league that must cut costs in order to balance accounts. The soccer club closed its accounts on December 31 2014 with a loss of €37 million. After two consecutive positive results (2012 and 2013) and a profit of €2.5 million, the club's accounts are back in the red. Now the team's aim is to cut salaries and focus on the new stadium.

Between 2010 and 2015, the club owned by the Della Valle family, made a deficit of €69 million, despite the important gains like those made in 2013 with the sale of Jovetic (€22 million) and Ljacic (€9.6 million).

The ownership has covered the losses with an allocation of 22 million, but this season the club's objective should be that of financial independence. Also because, according to the new rules of financial fair play, the club will have to close the 2015 budget with a minimum profit of €5.6 million in order to compensate for the imbalance between the accumulated deficit in the 2013-2015 period and the loss of €30 million.

The turnover in 2014 was equal to €94.3 million (it was €121 million in 2013), due to the collapse of the capital gains (down from €33.4 to €5 million) and the lack of an official sponsor in the second quarter of 2014.

The revenues from the ticket office increased by 30% to €12.7 million (with an average of 31,130 spectators during the season with 23,000 season ticket holders). Sponsorships were down to €6.7 million (€4.2 from official and technical sponsors), advertisement revenue dropped to €3.5 million, while merchandising and licensing activities made approximately one million.

TV rights amounted to €42.6 million while those for participation in the Europa League amounted to approximately 11 million. Production costs have however increased from €120.5 to €136.7 million (+13.5%), especially due to the increase in salaries from €60 to €75 million, to which an additional €30 million in amortization must be added. Bank debts, on December 31 2014, were of €4.96 million (€5 million in 2013).