In a historic move aimed at strengthening the financial sustainability of Italian football, Serie A players have agreed to a 25% salary reduction if their team is relegated to Serie B. The agreement was formalised this week through the Italian Players’ Association and applies league-wide.

Until now, relegation often caused severe financial instability for clubs, with many struggling to honour top-tier wage contracts despite plummeting revenues in the second division. The new clause is designed to protect both clubs and players from such collapses by ensuring more realistic wage obligations.

Ezio Simonelli, President of Serie A, called the agreement a “historic step” toward creating a “more resilient, equitable, and sustainable football system.”

Solidarity Payments Introduced to Ease Financial Gap

Alongside the wage reduction clause, Serie A is also introducing a compensation system to assist clubs that suffer relegation. Current top-flight clubs will collectively contribute to a fund that provides solidarity payments to those dropping into Serie B.

The parachute payments will range from €10 million to €25 million, depending on how long the relegated club had competed in Serie A prior to the drop. The longer a club has been in the top flight, the higher the financial support it receives.