From being the most decorated league in Europe, Serie A is slowly getting marginalized as Barclays Premier League, La Liga in Spain, Bundesliga in Germany have all improved leaps and bounds while the Italian league has stagnated and hence declining at an alarming rate.

Serie A fans saw the Capocannoniere winner leave the peninsula for a third year running as Ciro Immobile joined Borussia Dortmund, previously Zlatan Ibrahimovic and Edinson Cavani left for PSG. The performance of the national team in the World cup was deplorable to say the least and with the lack of talented players in the national setup it looks like the pain will continue longer. The likes of Marco Veratti, Ciro Immobile and Giuilo Donati have all left Italyas big clubs preferred to sign over-the-hill foreigners rather than having faith in their home-grown talents. Serie A is no longer an attractive destination for the stars but these ridiculous moves prove that it is unable to hold onto their own academy players who prefer to grow abroad. The likes of Juventus and Roma feel Ashley Cole and Partice Evra are a better choice compared to Davide Santon and Nicola Murru and are ready to offer them handsome salaries while ignoring their own young talents.

% of foreign players in Europe's top 6 leagues. EPL the highest with 66.1%. Eredivisie lowest with 29.2% (Source - La Gazzetta dello Sport)

% of foreign players in Europe’s top 6 leagues. EPL the highest with 66.1%. Eredivisie lowest with 29.2% (Source – La Gazzetta dello Sport)

Outdated stadiums paint the picture of a declining league

From having four teams qualifying to the Champions league, Italian football face the distinct possibilty of having only two in the near future as they have been overtaken by the Bundesliga and most recently by the Portugese league as well. The alarming decline sees no sign of improvement and on the contrary, French league now has two genuinely strong projects – PSG and AS Monaco who look set to do well in Europe. Plus the Euro 2016 in France will see a number of new stadiums being constructed which will further help improve the stature of the league. The worn out stadiums in Italy paint a different picture all-together though. Juventus and Sassuolo are the only teams in the top flight who own a stadium while Roma and Udinese are in the process of constructing them. Every year Serie A loses five percent of the stadium spectators compared to the previous year.

In preparation for the World Cup in 1990, the Italian government and local municipalities spent a massive amount of money to renovate and build new stadiums such as Stadio San Nicola in Bari, Delle Alpi in Turin while others such as Stadio Olimpico in Rome, San Siro in Milan, Luigi Ferraris in Genoa, Stadio Communale in Florence and San Paolo in Naples were extensively renovated. An estimated amount of ai??i??1 billion was spent by the government which exceeded the budget allotted by a long margin. Since CONI (Comitatio Olimpico Nazionale Italiano) were involved in this process as well, they made sure that newly built stadiums in Turin and Bari had running tracks around the field so that they can be used for later for other events.

Stadio Armando Picchi

Outdated Stadio Armando Picchi(Livorno)

The problem with these investments was that they came just before a revolution in stadium design took place, which saw a growing trend of restaurants, team stores, luxury boxes built along with a stadium which added to the income of the team. Currently the law in Italy states that the construction of a new stadium can be done 8 yrs after filling an application to the local authorities. A law was proposed to overcome these bureaucratic constraints but that law was never passed. The system of stadium ownership in Italy means that clubs have little or no say as to how they can be used. With many municipalities still paying off the debt of newly built stadiums, they lack the urge to construct the modern venues. With the increase of quality television broadcasting along with the poor quality of stadiums coupled with poor sightlines, violence, racism issues, lack of seats in those arenas has led fans in Italy prefer the comfort of their homes rather than visiting the grounds which practically offer them nothing. This has led to a significant decline in attendance which is directly related to overall match-day revenues. For example, Chelsea generated three times the match-day revenue compared to Milan despite the fact that Stamford Bridge is having half the capacity of San Siro. Italian clubs generate very small percentage of match-day revenues compared to the other big clubs in Europe and they generally earn more than 50% of their annual revenues from broadcast deals. Italian clubs need to increase revenues if they are to compete against the big clubs in Europe.

Financial situation declining at an alarming rate

Financial conditions of the league are moving from bad to worse. The total debt of Serie A has risen to ai??i??2.6 billion last year. The drain of top players and sale of prized assets are a regular feature in Italy. Only 7 clubs out of a total 107 recorded profits and although football is the most popular sport in Italy and also boasts a passionate fan-base, revenues of the clubs are extremely low by international comparisons. They are experiencing a rise of outstanding debt which they are trying to reduce by mainly cutting the salaries or sacrificing their most valuable player. The revenues generated by the clubs are mainly based on TV rights and hence are vulnerable to changes in mass media. The exponential growth of the playersai??i?? salaries also amount to a big challenge. The competitive growth of a number of clubs in comparison to the clubs in Serie A both at sporting and competitive levels have pushed them further back. The Tamoil shirt sponsor of Juventus was one of the biggest at that time in Europe but presently Juventus rank way behind the other big clubs like Real Madrid, Bayern Munich, Manchester United etc.

The top club-sponsorship deals across the world (Source- La Gazzetta dello Sport)

The top club-sponsorship deals across the world (Source- La Gazzetta dello Sport)

Mediaset which is the leading Italian media group posted a group net loss of ai??i??12.5 million ($17.1 million) in the first three months of 2014 and also suggested that revenues fell by 1.3% to ai??i??820.8 million as a result of poor performances. The company attributed this change in fortune mostly to the rising fees for domestic football and also a slowdown in advertising revenues as the Italian economy still feels the effects of the biggest recession since World War II. The early exits in the group stage for Napoli and Juventus in 2013-14 Champions League also had an adverse impact on pay-per-view revenues for Mediaset Premium which is the companyai??i??s pay-television service.

The Italian unit of Mediaset posted a loss of ai??i??17.7 million compared to a net profit of ai??i??4.2 million in 2013. The television unit posted revenues of ai??i??142.8 million which was also down from last yearai??i??s amount of ai??i??147.5 million. Mediasetai??i??s Spanish unit performed much better as expected and posted a net profit of ai??i??12.8 million which is a 2.4% rise from 2013. Mediaset attributed this rise from Spanish sector thanks to a ai???more forward lookingai??i?? economic recovery and predicted a rise in these figures for the second quarter as well. Mediaset have been actively seeking for an investor for the Italian pay-television related business but it has been hampered as there was a lack of clarity regarding the auction for Serie A rights from 2015-16 onwards. Now that it has been settled maybe the process can restart.(Source: Mediaset)

Lack of Talent and planning at high level

After the positive Euro 2012 campaign, things looked good for Italy as the U21 side reached the final in Israel. Two years on and the core of the team have all moved outside the peninsula now. Luca Caldirola, Giuilo Donati and Ciro Immobile all are in Bundesliga now while Manolo Gabbiadini recently expressed his desire to move there. Simone Padoin was considered better than Fausto Rossi by Juventus and he consequently moved to Spain. Equally baffling was the situation regarding Ciro Immobile who finished as the top-scorer in Italy but that was not good enough for the Italian champions who instead wanted Alvaro Morata from Real Madrid. Probably the most disappointing loss was Marco Veratti who is definitely the most talented player of that Azzurrini batch. Veratti is an important player of French champions PSG who repeatedly mentioned the fact that he was enjoying his time in Paris and has no plans to return to Italy in the near future.

% of total minutes played that each Serie A team has given to Italian players in 2013-2014. (Source- La Gazzetta dello Sport)

% of total minutes played that each Serie A team has given to Italian players in 2013-2014. (Source- La Gazzetta dello Sport)

The lack of talent maybe an issue as Italy have not produced talented youngsters like Germany and Spain have done in recent time but they do not even nurture the decent ones they have. Alessandro Florenzi barely got game time in Roma while Andrea Bertolacci and Luca Marrone had to play for Genoa and Sassuolo to get some time on the pitch. The big clubs do not trust their youth products while they themselves are getting disillusioned by these facts and are rejecting the chance to return to their parent clubs. (Berardi recently claimed Juventus were desperate to get him back but he instead preferred to stay and grow at Sassuolo). The recent U21 squad led by Luigi Di Biago faces an uphill task to qualify for the Euro Championship while the other age-group squads have not done anything noteworthy in the recent past.

% of players who once played for the youth team & also played for the 1st-team in 2013-2014. (Source - La Gazzetta dello Sport)

% of players who once played for the youth team & also played for the 1st-team in 2013-2014. (Source – La Gazzetta dello Sport)

Italyai??i??s failure on the world stage is nothing but an extension of these problems at the domestic level. Year after year, the rate of Italians in the squads are decreasing while the number of foreigners are increasing. In 2012 Inter played Ajax in final of the NextGen. Today, Ajax has 7 players from that team in their squad. Inter? 0. Average expenditure on youth sectors per club: Italy (2.75m) – Germany (4.4m). Total: Italy (55m) – Germany (79.3m). Current clubs in Serie A who have players in their squad who have been promoted from the youth sector : Atalanta (8), Roma (4), Juventus (3), Fiorentina (2), Inter and Lazio 1 each.

Clubs are no longer a threat in Europe

In the ten year span from 1989 to 1998, Serie A had at-least one representative in the Champions League final on nine out of ten occasions. It was a glorious period of domination where the likes of AC Milan, Juventus and Sampdoria regularly made it to the final of the most important club competition. Since then only the two Milan giants have lifted the trophy. After 2003, Italian clubs have reached the final only three times. A deeper look at the performances clearly suggests a decline in performances of the Italian teams compared to the English, Spanish and German clubs. Since 2008 only Inter Milan have reached the semi-final stage of the Champions league. During this period four English clubs (Arsenal, Chelsea, Manchester United and Liverpool) have made eight appearances together while Barcelona have reached the semi-final in all the editions except last year and Real Madrid have been consistently present since 2011. These figures suggest that Serie Aai??i??s influence on the premier club competition has diminished significantly.

The coefficient rankings of leagues based on the last five years (UEFA)

The coefficient rankings of leagues based on the last five years (UEFA)

The performances of Italian clubs in Europa League have been nothing short of disastrous. Juventus are the only Italian side to reach the semifinals after 2008 when Fiorentina lost out against Rangers. Bundesliga deservedly overtook Serie A in 2011-12 and the Italian clubs were left fighting for three Champions League places instead of four. Unfortunately the situation is getting worse. Italy are now ranked fifth in the co-efficient table as Portugal moved ahead after the conclusion of last European season. The performances of clubs over a five-year period are considered to determine the co-efficient rankings and next season Interai??i??s victory in 2010 will not carry any weight. Portugal will see their rankings boosted thanks to a standout year in 2010-11 when two Portuguese sides reached the final of the Europa League. The failure in the second-tier competition is a major reason that Portugal have forged ahead of Italy. And the way things are shaping up in France with newly rich clubs PSG and Monaco- it will not be a surprise to see them get the fifth place ahead of Italy soon.

Measures which can be taken for a better future

Building new stadiums will invigorate the fans to come back to the stadiums as was seen with Juventus. Fans will spend additional money on merchandise and other services available at the stadiums. The new Juventus stadium provides several new revenue sources for the club such as new restaurants, shopping mall called Area12 and also the Juventus museum which has a considerable number of visitors even during off-season. Udinese secured a 99 year lease on the Stadio Fruili at a low cost of just ai??i??45,000 per year and proposed a new stadium with modern facilities like restaurants, two Jumbotron screens, Wi-Fi access throughout the stadium. It is expected to be completed by the end of 2014. Roma announced the plan to build a 55-60,000 seat stadium and expect it to be ready for the start of 2016 season. Inter Milan have also put forward a proposal for a new stadium with the help of their new Chinese investors but the location has not yet been decided and the necessary approvals are not yet in place. Similarly Sampdoria, Palermo and Cagliari all have their sights set on a new stadium. While these sorts of initiatives are praiseworthy it has to be seen how many of them actually come to fruition.

Revenues have to be increased from sources other than TV rights. Technical sponsorships with Adidas, Nike etc have to be negotiated by the clubs and that will definitely act as a source of revenue for the clubs. Sales of these merchandize are threatened by fake products and hence a better enforcement rule should be applied to curb this. Serie A can promote their brand by organizing pre-season tours for its clubs. The big clubs do this but a more concentrated effort will see the lower ranked teams also benefit from these tours. Similarly former players of Serie A can become ambassadors in league-organized events for their respective clubs abroad which will help spread the popularity among untapped audiences.

The new television deal will no doubt come as a relief for the Italian clubs. The proposed 943 million euros a season deal with Sky Italia and Mediaset (an increase of over 100 million euros compared to the last three years) from 2015 to 2021 allows the clubs to prepare better in the transfer market or holding on to their prized assets. Once the highlights and international broadcast packages are sold then more than one billion euros are expected to be distributed among the clubs. Since the television deals serve the league collectively, hence this is one deal which suits the entire division and not just one or two clubs. But it is essential to increase the revenues from stadium receipts as well.

Serie A might consider introducing a quota to have two Italian U-21 players get a specific amount of playing minutes over the course of the season. Something even better could be the introduction of B teams like the system in Spain. The main problem regarding shipping off young talents to a lower division clubs are they develop under the tutelage of totally different systems and the sorry state of Serie B clubs often leads to injuries to players and the essence of the loan move is lost.

The % of players that make it from the clubai??i??s youth sector to the 1st team in every country.Italy in last position. (Source ai??i?? La Gazzetta dello Sport)

The % of players that make it from the clubai??i??s youth sector to the 1st team in every country.Italy in last position. (Source ai??i?? La Gazzetta dello Sport)

B teams should act as the final step for a young player where they play in a system which will help him fit in the senior teamai??i??s module. It is a bit unrealistic to expect a defender playing in a 4man backline in a Serie B team to seamlessly fit in a 3-5-2 formation in the parent club. In B teams, a player can be developed keeping in mind the specific roles required in the main team and it will help the integration better compared to a loan spell in a club like Pro Vercelli or Latina. Reducing the number of top flight clubs to 18 might also help increase the quality of football and decrease the number of matches per season which will allow the players to get some rest and perform better.

Italy are currently ranked 14th in the recently published Fifa World Rankings while Serie A is just marginally ahead of the Ligue 1 in the 5th place of the Uefa League Co-efficient ranking. Although the signs of decline were there 10 years ago, still no one would have expected such a dramatic collapse in this short time. It is high time for the authorities to take notice and act responsibly or else Calcio might crumble apart very soon.

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