Skip to main content

Sampdoria takeover finalised

Whisper it quietly, but it looks like the ownership saga at Sampdoria might just be coming to an end, as the shareholders have approved an agreement for the takeover of the club by Leeds United owner Andrea Radrizzani and his partner Matteo Manfredi through Gestio Capital and Aser Holding. It is also expected that QSI, the owners of Paris Saint-Germain, will take a minority stake.

The club had previously been involved in negotiations with Alessandro Barnaba and American investment firm Merlyn Partners, the owners of Lille, but their interest ultimately did not come to anything.

However, it looks like the agreement came too late to make the payment of three month’s wages (around €13.5m) before the 30th May deadline, which was needed to avoid a four points penalty next season.

After a terrible season, Sampdoria were already relegated to Serie B, but the fans had been concerned that their club might be declared bankrupt, which would have resulted in further demotion to the bottom of the Italian football pyramid.

The club has been in turmoil ever since previous owner Massimo Ferrero was arrested in December 2021 for issues relating to his business affairs elsewhere, i.e. not involving Sampdoria, which meant that he stepped down as president, necessitating the appointment of a new board under the chairmanship of Lanna, a former player.

Film producer Ferrero had purchased Sampdoria from the Garrone family in June 2014 for around €15m including the club’s debt. He has angered fans by his refusal to sell to new owners that would be more likely to provide the investment needed to relaunch the Blucerchiati.

Sampdoria have now suffered losses three years in a row, adding up to €60m, though this would have been €135m without the benefit of the suspended player amortisation and depreciation. Of course, this accounting adjustment will deflate future profits, proving once again that there is no such thing as a free lunch.

The club had actually been profitable in the preceding three years, though last season was the worst financial result since 2012/13 - even after the benefit of the fancy financial footwork.

Profit from player sales has dried up in the last two years with just €15m made in this period, which has had an obvious impact on Sampdoria’s bottom line. This is significantly lower than the preceding four years, when they generated an impressive €176m, averaging €44m a season.  This factor alone goes a long way to explaining why Sampdoria found themselves in financial strife, as they seemingly lost the ability to make money from player sales, exacerbated by the onset of COVID.

It’s when we look at Sampdoria’s debt that we begin to get a better understanding of their problems. Their gross financial debt increased by €29m from €67m to €96m last season, which means that this has nearly quadrupled in just three years from only €26m in 2019.  This comprises €72m owed to banks and €24m owed to other financial institutions, with the latter debt being secured on TV money €17m and transfer proceeds €7m.

Sampdoria’s debt is entirely owed to external lenders, whereas other clubs have benefited from owner loans, most notably Sassuolo.  Furthermore, Sampdoria’s debt is very high compared to their revenue. If we include profit from player sales, then Sampdoria’s debt was 1.4x as much as revenue, which was the third highest in Italy, only surpassed by Roma and Genoa.

Radrizzani did not mention what the implications are for Leeds United, where he currently owns 56%, but the feeling is that his acquisition of Sampdoria will hasten his departure, leaving the way clear for a full takeover by 49ers Enterprises, who hold the remaining 44% of the club.

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s

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

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl