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Thus, the clubs had to overcame another capital shortfalls, which later created controversy on reevaluating their brand and mortgaging to the banks.
In the early 2000s, many Italian football clubs became bankrupt due to benefactors withdrawing financial support, including AC Fiorentina (2002), Monza (2004), S. In February 2003, a law was passed to allow clubs to defer amortization expenses Articolo 18-bis Legge 91/1981, allowing clubs to avoid recapitalization through negative equity.
Many clubs still practiced cross-trading, however, to raise the short-term profit required to meet financial criteria for the 2003–04 season.
The law was considered unconstitutional in 2005, causing clubs to recapitalize, if necessary, and remove their amortization fund on or before 30 June 2007.
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2004–10 Italian football scandal is a football scandal regarding false accounting at Italian football clubs in the 2000s. In addition, Parma went into administration and was re-founded as Parma Football Club S.p. Previously, some of these clubs used the football transfer market to raise profits through cross-trading players, whereby two or more players switched clubs, with or without money changing hands.
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