From the Financial Times:
Cirio, an Italian food group, was yesterday in frantic talks with creditors to avoid default on a bond, a move that could signal deep trouble not only for the company but for many of Italy's top football teams.
Cirio is controlled by Sergio Cragnotti, a controversial businessman who, through the food group, also controls SS Lazio, one of Italy's best football clubs. Cirio owns 35 per cent of Lazio, while Mr Cragnotti owns another 15 per cent directly.
Earlier this year Lazio, which is quoted on the stock market, avoided bankruptcy after it sold two of its top players, and two creditor banks subscribed to much of its capital increase.
Although Cirio's troubles will not affect Lazio in the short term, people familiar with the situation said the club could face severe financial strain next year.
That would have a domino effect on other top Italian teams, virtually all of which are heavily indebted, face large operating losses, and depend on trading players among themselves to boost accounts with one-time gains.
"If Lazio goes under, everyone would go," said one observer. "And since the clubs are all owned by the most powerful people in Italy, the banks have helped. But it's unlikely they'll be able to help much more."
Cirio, an Italian food group, was yesterday in frantic talks with creditors to avoid default on a bond, a move that could signal deep trouble not only for the company but for many of Italy's top football teams.
Cirio is controlled by Sergio Cragnotti, a controversial businessman who, through the food group, also controls SS Lazio, one of Italy's best football clubs. Cirio owns 35 per cent of Lazio, while Mr Cragnotti owns another 15 per cent directly.
Earlier this year Lazio, which is quoted on the stock market, avoided bankruptcy after it sold two of its top players, and two creditor banks subscribed to much of its capital increase.
Although Cirio's troubles will not affect Lazio in the short term, people familiar with the situation said the club could face severe financial strain next year.
That would have a domino effect on other top Italian teams, virtually all of which are heavily indebted, face large operating losses, and depend on trading players among themselves to boost accounts with one-time gains.
"If Lazio goes under, everyone would go," said one observer. "And since the clubs are all owned by the most powerful people in Italy, the banks have helped. But it's unlikely they'll be able to help much more."