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).

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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