[sebastien]

After months of delays and investigations, a bankruptcy tribunal has ruled that AC Fiorentina must go under administration.

The troubled club was first reported to the tribunal last July when debts of over £100m were discovered.

Despite holding off bankruptcy with administrator Luciano Luna, the Viola remain deep in debt and the court has appointed Enrico Fazzini to take charge of their finances.

Over the next eight months Fazzini will take all necessary steps – including the potential sale of their top stars – to restore the financial status of the side that was relegated into Serie B.

This automatically rules the current Board of Directors out of the picture, including President Ottavio Bianchi.

The tribunal will also assign a Technical Consultant to aid Fazzini in his decisions. The main candidate is current Director of Sport Giuseppe Pavone.

“I am not a fan, nor an expert in football,” commented Fazzini. “I am just a citizen of Florence and therefore a man who loves this club.”

“I am unable to give predictions or an analysis of what I will do here. I know that the Tribunal has faith in my abilities, but I will require the help of an expert in the football field to make certain choices.”

“I must balance the books so that Fiorentina can register for the next Serie B Championship,” concluded the administrator, “but also construct a competitive squad.”

Fearing another violent reaction from the fans, Tribunal President Antonio Maci appealed for calm.

“We will see Fiorentina play in Serie B next season and Fazzini will redress the situation,” he claimed.

“In the meanwhile I shall go to see our neighbours Empoli in the top flight while I await the return of the Viola.”

 

[sebastien]

Its really quite saddening to hear that the mess gecci gori made has still not been cleaned up. I hope this balancing of the books brings a new debt-free future, although it seems that ac fiorentina wont have any funds on which to build a new team.
will there be more street riots in florence? no doubt!

 

[Humbird]

I'm not quite sure what exactly this guy is going to do, but if it gets the current board of directors out of the picture, that's fine.

A serious, impartial financial expert should have been appointed months ago. The current president and directors are all incompetent and probably criminals too.

 

[Giureconsulto]

Unfortunately Mr. Fazzini doesn't have the power to fire the board, only players...and what's worse, if the books aren't in the black in nine months, the team will be relegated to the Serie Dilettanti - no joke. That means starting from ground zero. Assuming they win every subsequent Serie, it will be nearly a decade before Fiorentina is back up in Serie A.

 

[Jeff]

Is he going to sue Cecchi Gori to recover the money he owes Fiorentina?

If not, where is the money to come from to "balance the books"? Selling players? That sounds more like a liquidation of assets than a balancing of books.

And I guess the prospect of selling the team to new owners is now out of the question.

Sounds like a case of too little, too late from the bankruptcy tribunal. We've come a long way down when the tribunal head has to assure us that the team will be playing in Serie B next year.

 

[Giureconsulto]

...where is the money to come from to "balance the books"? Selling players? That sounds more like a liquidation of assets than a balancing of books...

This is basic, standard receivership, Jeff...yes the money will come from selling off the assets, i.e. players in order to attain solvency

 

[Humbird]

this is more and more depressing. VCG will probably walk away scott free.

 

[Yacoob]

At least we're not confirmed to be playing Serie Z next season!

Now, Tirol, the Austrian team which played us twice (I mean four times) in UEFA Cup failed to pay for next season's league, and hence they were expelled from the premier division.

We're still hanging there, and until it's CONFIRMED that we can't pay for Serie B, we should be a bit...mmm...dunno really...

 

[Jeff]

This is basic, standard receivership...

I'm not familiar with the Italian system, but in Canada at least a receivership is not synonymous with a liquidation of assets.

Receivership normally means carrying on business as usual, including collecting all debts and receivables owing to the business. It is done with a view to protecting creditors and restoring the business to good financial health (at which point the receivership is terminated).

Disposal of capital assets in order to meet current expenses (i.e. liquidation) is more characteristic of a bankruptcy or a winding-up of the enterprise.

Is Fiorentina being wound-up?

 

[Giureconsulto]

I don't know much abot Italian commercial law either. I think your definition of receivership applies to the Fiorentina sitch. You obviously know about this subject. The new administrator will be selling off big-ticket players, to cover what or who I don't know. Maybe something to do with avoiding bankruptcy, eh?

Cheers,

Romulus

 

[David Votoupal]

This is truly depressing, to see clubs in such dire financial straits...

Apparently clubs as high as Serie B can be expelled from the league for financial irregularities or bankruptcy, and I certainly hope this doesn't happen to Fiorentina. Look at the aforementioned Tirol, as well as Bradford City in England (who are in administration and have sacked 19 players)...

 

[Humbird]

bankruptcy doesn't necessarily mean going out of business. If done right, the debts are restructured at lower interest rates, enabling the business to keep going and for the creditors to be paid some amount of money.

 

[Giureconsulto]

Bankruptcy would mean ineligibilty to register for the Serie B league, and could even mean dissolution of the club. It happened to Palermo about fifteen years ago. The club was essentially re-founded and had to start from Dilettanti.

 

[Humbird]

too bad it doesn't mean prison for Cecchi Gori

 

[David Votoupal]

Cecchi Gori at Fiorentina and Ferlaino at Napoli are both responsible for criminal actions to their respective clubs and should be punished as such.

Starting over in the amateur leagues would be unthinkable for a club like Fiorentina. I could list the clubs that have been forced to start all over in the lower leagues, apart from the aforementioned Palermo, there's been Pisa, Ternana, Catania, Taranto and Messina who have gone through that yet all of them have recovered and some have climbed back rapidly.

Some clubs in England are pushing for Bradford to be kicked out of the league unless they pay their 19 sacked players, it's still a possibility I believe.