By Andrea Caropreso
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With the start of a new transfer window, discussions around the liquidity index and the related parameters required to comply with the Italian Football Federation (FIGC) regulations have resurfaced. This mechanism, which gained media attention especially in the post-Covid era, has long raised doubts among professionals. Unforgettable in this context were the words of then (and current) Lazio coach Maurizio Sarri, who bluntly admitted to journalists that he had no idea how it worked.
What is the liquidity index?
Since 2015, the FIGC has introduced what is known as the liquidity index, a tool that, through various criteria, determines whether a club is allowed to register new players. Currently, the minimum value for the index is 0.8, although in past seasons it was set lower (0.6 or 0.7).
To better understand what this means, let’s look at a practical example. If a club has current assets of €40 million and current liabilities of €50 million, it meets the requirement since the division (40/50) equals 0.8 — a deficit deemed acceptable under FIGC rules.
Lazio: how the liquidity index is blocking their market activity
Lazio is currently one of the clubs affected by this financial mechanism. The club, owned by Claudio Lotito, cannot operate freely on the market as it is far from reaching the liquidity index threshold. As a result, Lazio can only spend what it earns. So, if Tchaouna is sold to the Premier League for €13 million, Sporting Director Fabiani will only be able to reinvest that same amount on incoming players.
| Situation | Market Consequence |
|---|---|
| Index ≥ 0.8 | ✅ Free to operate |
| Index < 0.8 | ⛔ Transfer ban |
| Index < 0.8 but with exception | ⚠️ Restricted market allowed |
| Index restored | 🔓 Ban lifted |
In the past, the liquidity index has also restricted clubs like Juventus, Sampdoria, and Lazio itself. However, this constraint will be lifted starting January 1, 2026, when a new metric — the “expanded cost indicator” — will come into effect. This will measure the ratio between squad costs (amortizations, gross wages, agent fees) and the club’s revenues.
Toward alignment with UEFA standards
The gradual phase-out of the liquidity index aims to bring the Italian market more in line with UEFA’s financial directives. So, while for years the liquidity index was a decisive factor in determining whether clubs could engage in transfers, the future lies in adopting the model set by Europe’s governing body.
This new model will, in some ways, be even more stringent. Having available cash won’t be enough — clubs will need to prove their operations are sustainable in the long run. Numerically, it means club expenses must not exceed a certain percentage of revenue. For the 2025/26 season, this threshold is set at 70%.
In other words, it will no longer be sufficient to sell a top player by June 30 (a topic currently relevant for Roma, for instance); instead, clubs will need a solid financial structure as the foundation for a sustainable model that all European clubs will have to follow.
