AS Roma are perennial loss makers

The authoritative Swiss Ramble looks south to review the latest accounts of ASRoma. The2020/21 accounts cover a COVID-impacted season when they finished 7th in Serie A and reached the semi-finals of the Europa League. First season under the ownership of The Friedkin Group, who purchased the club from fellow American James Pallotta.

The pre-tax loss reduced by €20m from €204m to €184m, but still club’s second highest ever. Revenue rose €48m (32%) from €149m to €197m, but profit on player sales fell €18m to just €256k and operating expenses increased by €11m (3%). Loss after tax was €185m.

The €56m (22%) revenue fall in the last 3 years from €253m to €197m is obviously partly due to the impact of the pandemic, but also highlights the importance of qualifying for the Champions League, which was worth €98m in 2018 (TV €84m plus match day €15m). It is imperative that ASRoma do well in Europe to boost broadcasting income, as TV rights in Serie A are relatively low.

European participation is extremely important for ASRoma, who have earned €209m from Europe in last 5 seasons, only surpassed in Italy by Juventus €454m and Napoli €243m. However, they have only qualified for the inaugural (less lucrative) UEFA Conference League this season.

The hefty €185m post-tax loss is not the highest in Italy in 2020/21, as it is surpassed by Inter €246m and Juventus €210m, though it is almost twice as much as Milan €96m. Atalanta have a December year-end, but their €52m profit is still pretty impressive. n fact, the big four Italian clubs have lost a staggering €1.3 bln in the last two seasons (€591m in 2019/20 and €737m in 2020/21). ASRoma “lead the way” with their €389m deficit, followed by Inter €348m, Juventus €300m and Milan €291m.

The club are no strangers to losing money, having suffered losses 12 years in a row, adding up to a horrific €674m. The last time they posted a profit was back in 2009 – and that was only €3m. That said, before COVID their only previous loss above €100m was €113m in 2003

Broadcasting income rose €51m (60%) from €86m to €137m, including revenue deferred from 2019/20 accounts, and commercial increased €18m (53%) from €35m to €53m. This compensated for COVID driven reductions in match day, down €21m to less than €100k.

Profit from player sales has been very important for #ASRoma, generating €372m from this activity in 5 years up to 2020, second only to Juventus. However, player trading has dried up in the last two years with just €18m made in this period. [Cubs across Europe have become increasingly reliant on player sales, but it is a very volatile source of income.]

The club have long sought a new stadium, but this has suffered many delays, which may well be one reason that Pallotta sold the club. Indeed, the Friedkins have abandoned the Tor di Valle project, so match day revenue will continue to suffer compared to elite clubs.

The wage bill rose €14m (9%) from €155m to €169m, partly because of €10m postponed from 2019/20 due to COVID-extended season. Wages only up €14m (9%) in last five years, while others’ growth has significantly outpaced them (Inter €137m, Juventus €101m & even Lazio €76m).

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The Political Economy of Football V2

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