NEWS
Sunday November 19 2017
Palermo fight bankruptcy proceedings

Palermo released a statement after the local authorities began bankruptcy proceedings against the Serie B club.

The decision was announced on Saturday morning, claiming an investigation had found a €70m hole in their accounts.

Today President Giovanni Giammarva – who took over earlier this month in a caretaker role from owner Maurizio Zamparini – released a statement via the club website.

“The request for bankruptcy proceedings is as a result of investigations that we have not yet been able to see and therefore cannot contest.

“Palermo believe this is finally the time to clarify to public opinion the real financial situation of the club. As we already declared, the club’s finances are in order with a profit of €4m for the financial year ending 30/06/2017, awaiting verification by the Coviscoc and already certified by the revision that found no anomalies.

“The solidity and capabilities of Palermo were also verified and the financial status is by far superior to many Serie A clubs. These circumstances, along with the club’s faith in the authorities of Palermo, allow us to look to the next developments with confidence.”

According to financial newspaper Il Sole 24 Ore, the problem stems from the sale of the Palermo brand to a company called Mepal in June 2016, generating a profit of €21.9m.

That company is controlled by Alyssa SA, registered in Luxembourg, a holding company run by Palermo owner Zamparini.

This sale of the brand effectively is what allowed the Rosanero to balance the books in 2016.

The odd thing is that the brand was sold three times over the last decade, creating a financial benefit of €68.9m – roughly the same amount as the ‘hole’ in their accounts.