The reform of Italian football: initial remarks on the latest draft bill

Football represents the pinnacle of the Italian sporting pyramid - one in four athletes take up football, making it the most practiced sport in Italy. 

It is also a strategic industrial sector, capable of generating over one billion euros annually in tax and social security contributions. In light of the national team's third consecutive failure to qualify for the FIFA World Cup, the need to fundamentally reform the Italian football system is more pressing than ever. In this regard, a draft bill titled 'Provisions concerning the Italian football system' (the 'Draft Bill') which aims to address structural weaknesses, was submitted to the Senate last May.

Italy's failure to qualify for the 2026 World Cup is no coincidence. Rather, it is the result of a system that has progressively ceased to invest in its own future. The lack of investment is compounded by an overall debt of approximately €5.5 billion, a decline in international competitiveness, and a significant loss of young talent.

The stated objective of the Draft Bill is to create a self-sufficient ecosystem, capable of restoring the youth's 'right to dream' and transforming current costs into competitive assets of future national teams. The Draft Bill consists of 21 provisions and is seeks to achieve three interconnected strategic objectives: generating new revenues, cost containment, and developing youth academies. 

Its main proposals are analysed below.

Cap on sports agents’ fees

Among the most significant measures is the introduction of a cap on sports agents’ commissions.

Specifically, the Draft Bill provides that fees may not exceed:

• 5% of the total gross remuneration, if paid by the player;
• 7% of the total gross remuneration, if paid by the club;
• 5% of the gross value of the transaction in the case of a permanent transfer, if borne by the acquiring club; and
• 3% of the transfer fee in the case of a temporary transfer.

In the event of contract renewal or extension with the same club, these percentages would be further reduced by 30%.

Any clauses exceeding these limits would be null and void to the extent of the excess. If clubs are found to be paying higher fees, they could be subject to sporting or disciplinary sanctions and to administrative fines between €10,000 and €100,000 for each violation.

Centralised guarantees for domestic transfer transactions

The Draft Bill also proposes a series of measures aimed at regulating the domestic transfer market. These include the establishment of a centralised guarantee fund within the Institute for Sports Credit, designed to support transactions between Italian clubs.

On default by the acquiring club and on request of the selling club, the fund will intervene in the transaction by directly paying amounts due, subject to verifying the actual default. Once the payment has been made, the fund is subrogated to the rights of the creditor and can accordingly exercise all recovery actions provided for by the law.

Therefore, in the event of default, the selling club is protected by the guarantee fund, without prejudice to the application of the sporting sanctions under relevant federal regulations.

VAT reverse charge for domestic transfers

The Draft Bill also provides for the introduction of the VAT reverse charge mechanism for transfers for consideration of players’ economic rights carried out between Italian clubs.

Under this provision, VAT obligations would be shifted to the transferee, with the regime applying not only to the fixed consideration but, more generally, to any economic component connected to the transfer.

The procedural framework

From a procedural standpoint, the parliamentary process for the Draft Bill is still at an early stage: at present, the text has not yet been assigned to any committee. As is well known, only following committee review - which may take place under different procedures and with varying degrees of amendment - and subsequent approval in identical terms by both chambers of the Parliament, can the measure become definitively effective. At this stage, therefore, it is not possible to make reliable predictions as to the timing of the Draft Bill’s approval.