Skip to main content

Record valuation for AS Roma

A sale of AS Roma is imminent, reports the Financial Times from New York. According to the Pink 'Un, the club is set to be acquired for €750m including debt which would be a record for a Serie A team. Growing television revenues provide an incentive to buy clubs.

The buyers are a consortium led by US billionaire Daniel Friedkin. His family own the Gulf States Toyota Distributors car dealership and other business interests. He is expected to go ahead with a plan to build a new stadium for AS Roma.

A group of US investors bought a controlling stake in the club in 2011, making them the first foreign owners of an Italian club. The existing American investors have become disillusioned about the failure of the local authorities in Rome to upgrade or regrade the Stadio Olimpico shared with local rivals Lazio. They have a poor reputation for failed governance

This points to a wider failure, the dysfunctional nature of the Italian political system. One might ask how some economic achievements have been possible in Italy. Some of these have been achieved in spite of the absence of effective governance.

Any one who has visited Italy over a long period of time cannot fail to be disappointed by the decay of public infrastructure and spaces, including graffiti. Refuse collection and disposal is an area in which failure often occurs.

It also has to be admitted that 'over tourism' has become a serious problem in locations like Roma, Firenze and, above all, Venice. Tourists do not, of course, generally come for the football, but it sets a context. Inward investment might therefore be welcomed but is always going to be controversial, especially with fans.

Comments

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do