Italian Football Club Palermo Reportedly Under Investigation, Could Face Bankruptcy

The Palermo, Italy, prosecutor's office reportedly "opened a preliminary investigation" which could lead to relegated Serie A club Palermo being declared bankrupt, according to FOOTBALL ITALIA. The team ended the Serie A season "in chaos," with President Maurizio Zamparini stepping down and Sporting Dir Nicola Salerno resigning. Paul Baccaglini took over as president, but the sale of the club to a group of overseas investors has not "been completed yet." According to Calcio e Finanza, "the prosecutor has opened a file to investigate a possible insolvency, following complaints by creditors." These creditors "are believed to be largely agents and consultants," and Palermo reportedly owes the state €120M ($135.3M). Meanwhile, talks are ongoing in London to complete the sale, "and Calcio e Finanza believes that due diligence will be completed by the end of the week, allowing the sale to be official" (FOOTBALL ITALIA, 6/6).