Roma’s 2023/24 accounts covered a season when they finished sixth in Serie A for the third year in a row, which meant that they once again failed to qualify for the money-spinning Champions League.
This was Roma’s fourth season under the ownership of The
Friedkin Group, who purchased the club from fellow American James Pallotta in
August 2020. In this period, there has
been a fair degree of change at Roma, including five head coaches.
Despite all the upheaval, Roma have been the model of
consistency in the league, finishing in 6th place in four of the last six
seasons (the other two were 5th and 7th). That’s not too bad at all, but it
does actually represent a decline in performance, as Roma had finished between
2nd and 3rd in the preceding five seasons.
Importantly, this means that Roma have missed out on qualifying for the
lucrative Champions League in recent years, which has placed a strain on their
finances.
Roma’s pre-tax loss reduced by €23m from €99m to €76m, which
is the second year in a row that the bottom line has improved, but this still
shows a sizeable deficit. The much lower losses were needed to comply with the
FFP settlement agreement signed with UEFA.
Revenue rose €30m (13%) from €224m to €254m, a new club
record, though this was partially offset by costs also increasing by €15m (4%)
from €348m to €363m. There was a significant reduction in net interest payable,
which decreased by €17m (60%) from €28m to €11m. Profit from player sales almost halved from
€47m to €24m, but other income from player management was up €15m from €6m to
€21m.
Roma’s revenue increase was driven by commercial, which shot
up €31m (49%) from €62m to €93m, while match day rose €6m (13%) from €49m to
€55m. However, broadcasting fell €5m (5%) from €109m to €104m and player loans
more than halved from €3.4m to €1.6m.
Quite a few Italian clubs made a lot more money from player
trading, with four of them generating more than twice as much as Roma, namely
Atalanta €71m, Napoli €71m, Inter €65m and Sassuolo €51m.
Big losses
Roma are no strangers to losing money, as they have suffered
losses 15 years in a row, adding up to more than a billion Euros (specifically
€1,068m). The last time that they posted a pre-tax profit was way back in 2009
– and that was only €3m.
To place last season’s €76m loss into perspective, while it
was much better than the past four years, it was still way higher than the
losses before the pandemic struck. In the last five years, Roma lost a massive
€782m, compared to only €113m in the preceding 5-year period.
Since the arrival of the Friedkins, the club has lost nearly
€600m, averaging €145m a year. The good news is that the losses have now fallen
two years in a row from the record €219m in 2021/22, while the club expects the
positive trend to continue in 2024/25.
The big four Italian clubs have established a reputation for
suffering huge losses, which means that they lost a staggering €2.6 bln in the
last five years. Roma had the second largest loss over that period with €789m
(after tax), only surpassed by Juventus €879m.
However, the losses have basically halved in the last couple
of years. The biggest improvement was delivered by Milan, who actually posted
profits in each of the last two years. However, the second best reduction in
losses came at Roma, as this dropped by €123m from €204m to €81m.
Europe
European participation is extremely important for Roma, but
the drop-off in their revenue in the last five seasons, when they have not managed
to qualify for the Champions League, is striking.
They only averaged €23m in this period, even though they won
the Conference League in 2021/22, while also reaching a Europa League final and
two semi-finals. This was less than a third of the €71m income they averaged in
the Champions League in 2017/18 and 2018/19.
As a result, the €116m TV money they earned from Europe in
the last five years was much less than their Italian rivals, e.g. Inter and
Juventus received €340m and €310m respectively, while Napoli’s €242m was more
than twice as high.
It will be a similar story this season, as Roma are once
again playing in the Europa League, even though Italy had five representatives
in the expanded Champions League, thanks to having one of the two best UEFA
coefficients.
Given the enormous amount of money that the Friedkins have
put into Roma, the failure to qualify for the Champions League has to be
considered a poor return on their investment.
Roma’s average attendance of 62,970 was the third highest in
Serie A, around 10,000 below the two Milanese clubs: Inter 72,838 and Milan
72,008. In turn, Roma were a fair way ahead of Napoli 46,967, Lazio 44,142 and
Juventus 39,416. Even more
impressively, Roma’s crowds featured among the top clubs in Europe with their
average attendance being ninth highest in 2022/23.
Stadium
Roma have been after a new stadium for a long time, as their
match day revenue has been on the low side compared to elite clubs, but all
their plans have experienced numerous delays.
The latest project is in the Pietralta area with a planned
capacity of 55,000 and the possibility of extending this to 62,000 at a later
date. The cost has increased from €600m to €1 bln, mainly due to work requested
by the local authorities.
Roma’s wage bill increased by €29m (17%) from €173m to
€202m. This was a new club high,
comfortably above the previous €184m peak in 2018/19. Player wages rose €25m
from €126m to €151m, while coaches’ wages were up €4m from €18m to €22m. The rise was a little surprising, given the
pressure to reduce costs to help meet the financial targets in UEFA’s
settlement agreement.
Following last season’s growth, Roma’s €202m wages have
climbed to the third highest in Serie A, having overtaken Milan €189m. However,
they were a fair way below Juventus €264m and also lower than Inter €227m. Given Roma’s habit of finishing sixth in the
league, they have underperformed their budget.
Roma’s wages should reduce this season after the departure
of a number of high earners over the summer. Leonardo Spinazzola, Rui Patricio
and Rick Karsdorp all left on free transfers after their contracts expired,
while many loan deals came to an end, including Romelu Lukaku, Renato Sanches,
Dean Huijsen, Diego Llorente and Rasmus Kristensen. In addition, Tammy Abraham
went to Milan on loan.
Even after last season’s fall, Roma’s gross debt has
increased by €221m since 2019. However, the composition of the debt has greatly
changed, so in the last four years external debt has decreased from €280m to
€179m, while owner debt has increased from €10m to €298m. This has reduced the
club’s exposure to third parties.
Roma have been very reliant on capital injections from their
owners, including another €90m from the Friedkins in 2023/24. That took capital
funding to nearly €850m since 2012.
The Swiss Ramble estimates that the Friedkins have put €713m
into Roma, adding together capital and loans. If we the add the €199m they paid
when purchasing the club (including €111m to repay a loan from Pallotta and
€63m to acquire their 86.6% stake) plus €26m to smaller shareholders, their
total investment to date is approaching a billion Euros.
The Friedkins have clearly improved Roma’s finances, growing
revenue to record levels and reducing the loss by two-thirds in the last two
years. However, the fact remains that they still posted a significant loss in
2023/24 and face a considerable challenge in complying with UEFA’s FFP
regulations.
Although they have done well in Europe by most standards,
reaching two finals and even winning silverware, the failure to qualify for the
lucrative Champions League has hit them hard, as has the poor performance in player
trading.
As a result, they continue to rely on significant financial
support from the owners, which is likely to be required for the foreseeable
future. There is no doubt that the
Americans have put their money where their mouth is, but many fans are unhappy
at the moment, due to the uninspiring start to the season and the decision to
sack De Rossi.
It may be unappreciated by many supporters, but the
Friedkins have to perform a difficult balancing act by spending enough to
compete for a place in the Champions League, while staying within the
restrictions imposed by UEFA’s FFP targets. That’s not easy.
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