Home Football Serie A Relegated Players to Face Automatic 25% Wage Cut under New Collective Deal

Serie A Relegated Players to Face Automatic 25% Wage Cut under New Collective Deal

by Osmond OMOLU
serie

Italian top-flight footballers have formally agreed to a 25 percent salary reduction if their clubs are relegated to Serie B — as part of a landmark five-year collective bargaining agreement between Lega Serie A and the Italian Footballers’ Association (AIC)

When It Applies – Contracts & Timing

  • The new pay-cut rule will only apply to contracts signed from September 2, 2025, shortly after the close of the summer transfer window.
  • Existing contracts are unaffected, meaning only newly written agreements will contain the relegation clause.

Automatic Pay Adjustment Mechanism

Under the agreement:

  • Relegation from Serie A to Serie B triggers a mandatory 25% salary reduction, applied automatically.
  • Salaries return to their full original level upon promotion back to Serie A, restoring players’ previous pay rates

This mechanism standardizes compensation reductions that were previously left to individual negotiations.

Intent and Rationale

The aim is to alleviate financial strain on relegated clubs, which often face sudden revenue drops. The AIC and Lega Serie A believe this shared sacrifice helps maintain overall system stability.

Ezio Simonelli, President of Lega Serie A, called it an “historic agreement” that contributes to building “a football system that is increasingly solid, equal and sustainable”.

Minimum Salary Guarantee

A new minimum salary structure, based on player age, has also been introduced. Importantly, this minimum cannot be cut, even in the event of relegation—providing a safety net for younger professionals.

Comparing to Previous Practices

  • Historically, Serie A clubs relied on parachute payments—financial support ranging from €10 million to €25 million (depending on relegation duration and club tier)—to soften the blow of dropping to Serie B.
  • That approach frequently created gaps between clubs that could negotiate individual relegation clauses and those that could not.
  • The new unified clause ensures predictability and fairness across the board.

Summary Table

AspectDetails
Applies toContracts signed from 2 September 2025 onwards
Relegation penalty25% automatic salary reduction upon drop to Serie B
Promotion clauseFull salary restored if returned to Serie A
Existing contractsUnaffected – pay terms held as originally agreed
Age-based minimum wageGuaranteed, even if team is relegated
PurposeTo ease financial pressure on relegated clubs and distribute risk equally

Potential Impact & Implications

  • For Clubs: Improved budget management — clubs can better anticipate player costs if relegated, making financial planning more robust.
  • For Players: Greater clarity in contract expectations. But particularly for fringe players or those on short-term deals, the clause creates higher risk—especially in clubs in relegation battles.
  • For Agents and Negotiations: Likely to shift contract strategy—players may negotiate alternative protections, like relegation release clauses or guaranteed bonuses to offset potential loss.
  • For League Stability: Reduced financial shock may help clubs bounce back faster and prevent long-term debt spirals commonly associated with relegation.

Final Thoughts

The agreement marks a significant shift in Serie A’s labor landscape. It sets a clear, league-wide standard for how salary adjustments due to relegation should operate—providing structure and predictability for both players and clubs.

By codifying the 25% pay cut in a collective agreement (rather than relying on ad‑hoc clauses), the Italian Footballers’ Association (AIC) and Lega Serie A have implemented a forward-thinking approach to wage flexibility in response to relegation risk.

While the move is aimed at long-term financial sustainability, its true effect will become clearer as contract cycles renew and player movements unfold in the coming seasons.

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