Palermo facing bankruptcy?

By Football Italia staff

It’s believed the Palermo prosecutor’s office has opened a preliminary investigation which could lead to the club being declared bankrupt.

The Rosanero ended the Serie A season in chaos, with President Maurizio Zamparini stepping down and sporting director Nicola Salerno resigning.

Paul Baccaglini took over as President, but the ale of the club to a group of overseas investors hasn’t been completed yet.

According to the website Calcio e Finanza, the prosecutor has opened a file to investigate a possible insolvency, following complaints by creditors.

These creditors are believed to be largely agents and consultants, and it’s thought Palermo owe the state €120m.

Therefore prosecutor Salvatore De Luca and his deputies Francesca Dessi and Andrea Fusco have started the process of investigating whether to consider the club insolvent.

The process is still in motion, and it’s not thought the Rosanero will be declared bankrupt in the short-term, but the possibility is nonetheless being taken seriously.

Given that they were relegated from Serie A this season, Palermo will see a drastic reduction in television money for next season and their squad is unlikely to be enough to cover any liabilities.

Meanwhile, talks are ongoing in London to complete the sale, and Calcio e Finanza believes that due diligence will be completed by the end of the week, allowing the sale to be official.

Back in Italy, everything is on hold due to the situation, meaning no new signings can be made or new contracts agreed.

More worryingly, Palermo haven’t started the process of ensuring the meet the requirements of registering for Serie B, which must be done by June 30.

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