AS ROMA: AMERICAN INVESTMENT YET TO YIELD PROFITABLE RETURNS

Seventh, sixth, still sixth, and currently eight. AS Roma under the ownership of the Friedkin family have never been among the protagonists of Serie A. The triumph in the Conference League and the Europa League final, while commendable, are insufficient to justify the substantial and thus far unproductive investment made by the Texan entrepreneurs since August 2020.

The Friedkin era began with high hopes centered around José Mourinho: a three-year contract for the top-tier coach (with coaching staff expenses amounting to €19 and €18 million in the 2021/22 and 2022/23 seasons, respectively) and a project aiming to place Roma in the Champions League spotlight. However, despite a wage bill lower only than Juventus and Inter, this vision has yet to materialize. While Mourinho did spark enthusiasm in the fan base, contributing to a surge in stadium revenues from €25 to €49 million and a rise in merchandise sales from €14 to €22 million last season, the true leap forward for Roma lies in accessing the lucrative Champions League. As of now, that objective is distant, trailing by 2 points although with one more match played – with three teams ahead of the Giallorossi in the race for the fourth spot.

Dan and Ryan Friedkin, sensing the need for a radical shift to salvage the season, decided to part ways with Mourinho, leading to the ongoing financial commitment to pay both Mourinho and his staff (approximately €9 million gross until June 30) alongside the addition of Daniele De Rossi's salary for five and a half months. Can the former Roma legend rejuvenate the team? Presently, one thing is certain: the Friedkins' Italian venture has yet to make a lasting impact. It's worth noting that when the Texan owners took over three and a half years ago, they inherited a club burdened with significant liabilities, concluding the financial year with a staggering loss of €200 million, wage expenses exceeding operating revenues, and a €275 million bond. Since then, the financial picture hasn't improved substantially. The financial outcomes under Texan ownership are as follows: -€185 million in 2020/21, -€219 million in 2021/22, and -€103 million in 2022/23, totaling a loss of €507 million.

Revenues, excluding player trading, remained below €200 million, except for last year, marked by strong performances in ticket sales and the commercial segment.

Wages fluctuated from €169 million in 2020/21 to €183 million in 2021/22 and €173 million in 2022/23.

Nevertheless, some positive signals are emerging: over €40 million in income from player transfers and more than €30 million in cuts between personnel costs and amortizations. Net financial debt, excluding shareholder loans aimed at a capital increase of €520 million to be completed by December, has decreased to €130 million, as the shareholder contributed to repaying part of the bond in the debt refinancing process, reducing exposure to third parties. What can't be faulted in the Friedkins' approach is their injection of equity, crucial for the Roma's operational continuity. Over these years, consistent financial contributions have been made. In the last season alone, the ownership provided €232.5 million, with an additional €20 million in the first quarter of 2023/24. Overall, we're talking about €621.8 million flowing into the company coffers over three years. Adding the €199 million for the club's acquisition from Pallotta's consortium and the €37 million for the 2022 operation (including the public offer and various acquisitions), which granted Romulus and Remus Investments full ownership, the total American investment amounts to €857.8 million. A sustainable commitment for Dan Friedkin, credited by Forbes with a personal fortune of 6 billion dollars, earned through the sale of Toyota cars and lucrative ventures in luxury tourism and entertainment. However, sooner or later, the Giallorossi owner will want to understand when a return on investment can be envisioned. Looking at the enterprise value, estimated by Football Benchmark, we are still in a stagnant phase.

After reaching its peak in 2020 at €602 million, in the latest edition of the report published in June 2023, Roma was valued at €555 million – the only club among the 32 monitored that failed to surpass its previous record. In the next publication, the Giallorossi might aim to revise this figure, but the Texas tycoon cannot settle for less. The plan is ambitious: transforming Roma into a global media company, interconnected with other businesses in the Friedkin galaxy. The acquisitions of Mourinho, Dybala, and Lukaku were intended to facilitate this transformation. Unfortunately, given the current revenue sources in football, access to the Champions League is a prerequisite. Another unavoidable step is the ownership of the stadium. With the Tor di Valle project now closed, Roma have reached a preliminary agreement with the municipality to build the facility in Pietralata. By the end of February, the club must submit the final project, aiming to inaugurate the stadium in 2027. Only through the convergence of these two factors – doubled stadium revenues and Champions League earnings – can Roma truly position itself in the €300 to €400 million revenue range, and make Friedkin's investment profitable.

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This article is a special contribution of Marco Iaria from La Gazzetta dello Sport to Football Benchmark.