The “parachute” in Italian soccer represents a key element in the financial ecosystem of teams facing relegation from Serie A to Serie B. Introduced in 2009 as a response to various economic dynamics of the Italian soccer landscape, including the split between Lega Serie A and Lega Serie B, this mechanism has a significant impact on both the sporting and financial dynamics of the teams involved.
THE BURDEN OF PARACHUTE ON TURNOVER
Analysis of data from 2014/15 onward reveals how much the “parachute” affects the financial prospects of the teams involved. Out of a total of 25 teams that have benefited from this support in the seasons examined, it emerges that the parachute constitutes a significant part of their overall turnover. On average, the teams analyzed collected about 14.7 million euros, accounting for 45.5 percent of the average turnover of about 32 million euros per team. This underscores the crucial role of the parachute in the budgets of relegated teams and its importance in mitigating the financial impacts of declassification.
DIVERSIFYING REVENUE: THE ROLE OF SPONSORSHIPS
Despite the support provided by the parachute, relegated teams still face significant economic challenges. Revenues from this mechanism are often insufficient to cover operating costs, particularly those related to squad management, between depreciation and salaries, which average 27 million euros. This financial deficit requires teams to seek additional sources of income, and in this context, sponsorship emerges as a key element in increasing overall revenue.
We can see the importance of the issue of revenue diversification. Sponsorship agreements therefore become crucial, offering teams the opportunity to increase their revenues and partially offset losses from relegation. The ability to attract sponsorships thus becomes a strategic element to ensure financial sustainability in the competitive environment of Serie B and to consolidate the basis for a rapid return to Serie A.
In these situations, but widening the field to a more extensive range of evaluations for all sports and at any level, ChainOn’s marketplace allows to “get out” of the limited network of companies that gravitate around clubs, allowing the same to propose their sponsorship deals to a large number of potential investors: on ChainOn sellers (clubs, leagues, media centers) can sell their sponsorships and get in touch with buyers (micro, small and medium enterprises, professional firms, companies) interested in promoting their brand. The marketplace also makes it possible to negotiate contracts, as in an offline negotiation: the great advantage is the speed and ease with which agreements can be closed: it only takes a few clicks and a few minutes to form a partnership on ChainOn, and everything can be done disintermediately and in total security.
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