Lazio market: Sarri and the liquidity index. But what is it?

Market blocked due to the liquidity index. And Maurizio Sarri complains about it on live TV at the end of Inter-Lazio, complaining (in colorful language) that he doesn’t even know what it is. In reality he knows very well, because he has already had to deal with it in the long, last summer. During which some purchases already made by Lazio (Felipe Anderson, Hysaj and then also Basic and Pedro) remained on stand-by for a long time precisely because of that liquidity index that now returns to lengthen its threatening shadow on the hopes of the coach to see his team’s squad strengthened in the winter transfer session.

What is the index

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Yeah, but what exactly is it about? What is this liquidity index that blocks Lazio (and other Serie A clubs). In the meantime, it would be more correct to call it a liquidity indicator. Which is then the term with which it is mentioned in the Noif (Federal internal organizational rules) of the Football Association. It was introduced in 2015 and serves to monitor the liquidity of football clubs in the short term. In other and simpler words: it is a beacon on the risk of indebtedness by the clubs. Who can take on new financial commitments (purchases of new players with relative salaries, but also contract renewals of their players who have expired their contract) only if the ratio between current assets and liabilities does not exceed 0.6. Lazio has been dancing around this figure for a couple of years, which is why all its last market sessions have been conditioned by this stake. New arrivals were only possible after making some sales. Because to bring the indicator back to balance or to a positive sign, the simplest way (and least expensive for the corporate balance sheet) is to complete one or more sales. The money for the card is collected and the money for the hiring of the transferred player is saved. But there would also be other ways to overcome the obstacle of a negative indicator: the capital increase, a payment into the future capital increase account, a subordinated and non-interest bearing loan of the shareholders, a payment to cover losses.

Like Casale

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All paths that, however, at least for the moment Lazio does not intend to follow. In this way, the disposals are expected in order to bring the liquidity indicator back into profit. For the moment only one has been made, that of Escalante on loan to Alaves. Free loan, for which there is only the saving of the salary for the next six months which, however, is not enough on its own to settle the situation. Other assignments are needed, possibly outright, or onerous loans. At the moment we do not see it, even if some clubs are focusing the attention on Lazzari and Muriqi (both out). If one of the two were to leave the situation would unblock and Lazio could go to the assault of those players who have put on the list of possible reinforcements. For the defense, for example, Nicolò Casale del Verona is liked. His club would like to keep him until the end of the season and eventually sell him in the summer. But, if the index unlocks, Lazio will make an attempt to immediately bring it to Sarri’s court.