Parma FC SpA would high likely bankrupted again after a decade, or at least an auction of the residual asset and formation of new company. But why? In recent years Parma was keen on cashless player swap with other clubs with financial trouble (such as bankrupted Ascoli, Padova and Siena), which the pricing of the players were suspicious. Moreover with a squad of over 100 players, did Parma really playing lottery in order to make profit from underrated players? However, despite Cesena discovered Parolo, the club barely covered their investment from Chievo when Cesena sold Parolo to Parma in 2013. Or would Parma able to discover another Giovinco? Giovinco was a special case that Juventus want to block the player transfer to archrival Internazionale, which may be a trick between Inter and Parma to aid the finance of Parma, or Juve willing to feed Parma for a excessive 11 million EURO.
However, with EURO 85,786,101 asset value of the player contract, Parma only able to compare with Cesena, which had 16 points as of 16 February 2015, which only have a squad worth EURO 21,766,600 in accounting on 30 June 2014, or Sassuolo which had a value of 31,793,341 EURO on 31 December 2013. Sampdoria, had 39.076 million EURO on 31 December 2013.
How high 86 million is? Juventus squad "worth" 120 million EURO only (30/06/2014), which Milan "worth" 118 million on 31 December 2013. Or look at non-giant: Lazio, 35,936,631 EURO, Roma 89.156 million EURO.
Despite we knew Parma ranked 7th last season, however even entered Europa League, the TV revenue would not able to sustain from an amortization of over 20 million a season, which generated from players that not existed from the first team squad, such as Andrea Rossi (720,000 per season until 2017), or Thomas Fabbri (500,000 per season until 2015). Mauro Cioffi (520,000 per season until 2017), Andrea Rossini (640,000 per season until 2017) Francesco Finocchio (400,000 per season until 2018). Unlike Porto that individual players would able to act as warrantee in order to secure loan from the banks, (as well as forbidden by FIFA), no one actually buy flops. If deducting the value of the squad to reflect the actual value, say, the squad actually worth 50 million in accounting, then the actual net equity would be negative 15 million, not the paper value of 9,560,255 EURO on 30 June 2014.
That's why the club was sold for a peppercorn of 1 dollar, as the club was actually in deep insolvency few years ago. Without a sugar daddy to run the club, but in terms of raising debt, the club better folded again to rebirth.
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