Proof of Theorem.
We know already: The number of permutations of {1,2,...,n} is n!
Let f be a permutation.
(a) Consider the permutations f0, f1, f2, ..., fn!
(b) There exist 0 ≤ i < j ≤ n! with fi = fj.
(c) Is fi = fj with 0 < i < j, then also fi-1 = fj-1.
(d) Therefore f0 = fj-i (and 0 ≤ i < j).
Also: Since j ≤ n!, we have j-i ≤ n!