Many Italian teams have worse losses than AS Roma

The authoritative Swiss Ramble reflects on ASRoma's 2018/19 accounts which cover a season that the owner James Pallotta harshly described as 'a complete disaster'. They fell from 3rd to 6th in Serie A and exited the Champions League at the last 16 (compared to the semi-finals in 2017/18).

The loss before tax improved from €18m to €15m, despite revenue falling €17m (7%) from €253m to €236m & €63m cost growth. Offset by profit on player sales rising €75m to €129m. Revenue fell €17m (7%) to €236m, mainly due to less progress in Champions League: TV down €22m (13%) to €145m, match day down €5m (14%) to €34m. However, commercial was up €10m (21%) to €55m.

Despite the decrease in 2018/19, ASRoma's €236m revenue remains the third highest in Italy, but it is now less than half of Juventus’ €495m and a substantial €140m behind Inter €373m. Roma’s revenue mix: broadcasting 61%, commercial 23%, match day 14% and player loans 1%.m. Including player trading, revenue up €61m (19%) from €320m to €381m.

In the last 3 years, ASRoma have only grown revenue by €15m (7%), while Inter (up €194m) and Juventus (up €123m) have powered ahead. In the same period, they have also been outpaced by Atalanta, Napoli and Lazio. Only Milan have a lower rate of growth.

Revenue figures highlight the importance of qualifying for Europe, particularly the Champions League. The 2018/19 revenue of €236m was greatly influenced by €66m from Europe’s leading tournament (TV €58m + match day €8m), though not as much as prior year’s €98m.

AS Roma have earned an impressive €282m from Europe in the last 5 seasons, only surpassed in Italy by Juventus’ €447m, but comfortably ahead of Napoli €185m, Inter €67m and Lazio €59m. Will receive lower money in 2019/20, due to only qualifying for Europa League.

The €15m loss before tax is not great, but is by no means the worst in Italy, as seen by Milan’s huge €143m loss, followed by Inter €40m and Juve €27m. Just over half the clubs in Serie A lose money. The most profitable are Atalanta €35m, Sampdoria €19m & Sassuolo €13m.

The last time that ASRoma reported a profit before tax was back in 2009 – and that was just €3m. Since then, they have suffered losses 10 years in a row, adding up to a hefty €286m. In fairness, the losses have fallen for the last two seasons.

Profit on player sales is increasingly important for ASRoma, averaging €93m a year over last three years. Excluding this activity, 2018/19 loss would have been €144m. This season the only notable sales to date are El Shaaraway and Gerson, though January window still to come.

After many delays the mayor of Rome has approved the new stadium. Pallotta: 'If we want to consistently compete with the largest teams in Europe, we need the stadium.'

Pallotta noted, 'FFP is a reality for us and it has dictated many of our actions.' It is therefore problematic that ASRoma failed to qualify for the 2019/20 Champions League, as the Europa League is far less lucrative. Long-term the new stadium is a must for a sustainable model.

Wolves get raw deal from FFP

I used to see a lifelong Wolves fan for lunch once a month. He was approaching ninety, but still went to games. Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules. Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000. The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts. Money brought in from football has gone up too. Match day income is

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved: https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen. There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere: https://thecharltondossier.com/charlie-methven-on-the-record/

The Political Economy of Football V2

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