Rome: here are the red accounts of the Giallorossi
The accounts do not return to Rome, and not only for the fluctuating trend in the league and in the Conference League: a recapitalization of 250 million euros is ready
The accounts do not return to Rome , and not only for the fluctuating trend in the league and in the Conference League.
Roma balance sheet: losses of 185 million euros
The draft financial statements and the consolidated financial statements at 30 June 2021 of the Capitoline team show losses of 185.3 million, while revenues only reach 190.4 million. Last June, net financial debt was 376 million. The indicators do not speak of healthy management. Consolidated shareholders' equity is negative, -272.2 million euros, "down by 30.8 million euros compared to 30 June 2020 due to the loss for the period, equal to 185.3 million euros, partially offset by the increase recorded during the year, equal to 154.6 million euros, in the “Shareholders' reserve for capital increase”, the note states. In the previous year, the loss was 204 million euros.
Whose Roma is it?
Since last August 17, 2020, Rome has been owned by The Friedkin Group which purchased it, through Romulus and Remus Investments LLC. "In particular – reads the balance sheet of the Capitoline team -, as of August 17, 2020, RRI controlled 100% of NEEP, a joint-stock company under Italian law, owner, with a stake of 83.284%, of the majority stake in the capital of AS Roma SpA, and was the direct owner of 3.293% of the shares with voting rights of the same AS Roma. RRI is a Delaware limited company directly controlled by Romulus and Remus Holdings LLC, a Delaware limited company owned by Mr. Thomas Dan Friedkin ”.
New capital increase of 250 million euros
The Board of Directors, chaired by Thomas Friedkin, was forced to extend the capital increase by 250 million . A resolution of last December 9 had provided for an increase of 210 million, but it is no longer enough. On November 26, the shareholders' meeting will have to approve a recapitalization of a total of 460 million and the deadline for completing it will be extended to 31 December 2022. To address the imbalance between costs (235.6 million) and revenues (190.4 million) The Friedkin group, who took over from James Pallotta on August 17, 2020, will have to put his wallet, another 75 million euros, in addition to the more than 250 million already paid by the American property in the Giallorossi club.
The reflections of Covid-19 on Rome's coffers
Last season, despite having been hit by the limitations imposed by Covid-19, it recorded improvements compared to the difficult previous season. Consolidated revenues increased from 141.2 to 190.4 million . The Giallorossi staff has grown, in quantitative and qualitative terms, so much so that personnel expenses have increased from 155 to 169.4 million, net financial charges from 32.2 to 36 million.
Participation from UEFA
From their participation in the 2020/21 UEFA Europa League, and the 2019/20 UEFA Europa League round of 16 played in August 2020, AS Roma earned around € 24.8 million ( € 16.8 million, as at 30 June 2020).
TV rights
TV rights also increased, from 80.3 to 124.2 million , which includes the recovery of 20.8 million for the suspended matches due to Covid in the previous season. "The revenues deriving from the television rights of the Serie A and the Italian Cup are equal to 103.5 million euros (64 million euros at 30 June 2020) and include the share of TV rights recognized to the teams participating in the UEFA Europa League – reports the press release -. It should be noted that € 20.8 million relates to the recognition on an accrual basis of that portion of income related to the 2019-20 championship matches played in July and August 2020, net of which, such income is approximately 1 lower, 8 million euros compared to the previous championship, essentially due to the different positioning in the final standings ".
The management of the players
The buying and selling of players' rights did not bring new cash flows into the coffers of Roma which, on the other hand, recorded a negative of 1.2 million . "The balance consists of capital gains from the sale of rights to sports services, expressed net of discounting, for 21.3 million euros (20.2 million euros, as at 30 June 2020), mainly achieved through the sale of rights to sports performances of the players Schick, Kolarov, Gonalons, Defrel, Cetin, Coric, Diaby and Cancellieri – reads the note -. Losses / write-downs from the sale of rights to sports services, amounting to 21.1 million euros (2.4 million euros, as at 30 June 2020), derive from contractual sales or terminations made after the closing of the financial statements and therefore is a recoverability assessment was carried out with the consequent write-down of the Rights. Finally, the balance is made up of revenues from temporary sales and other income for 14.8 million euros (12.4 million euros, as at 30 June 2020), more than offset by charges for the temporary acquisitions of rights, bonuses, enhancement, technical training and FIFA solidarity equal to 16.3 million euros (14 million euros, as at 30 June 2020) ".
The violation of Uefa Fair play
In the report the company reports that it has recorded "a deviation from the UEFA break-even requirements for the reporting period of 4 years". This means that it has violated the parameters of UEFA Financial Fair Play. However, "since the automatic application of a sanction as a consequence of a violation is not predetermined, and even more so what type of sanction, it is not foreseeable today which decision will be taken by the CFCB" of UEFA.
Doubts about the stadium
Friedkin, therefore, continues to invest in the Giallorossi club. The chapter on stadium ownership remains open, which should, in part, justify the mammoth investment of American property. In the meantime, the council now led by Roberto Gualtieri has changed in the Campidoglio. The project could take shape again. In addition to the Tor di Valle area, initially assessed by James Pallotta , the option of the former General Markets in via Ostiense has now come up on which Radovan Vitek , the Czech entrepreneur-real estate developer who has already taken over the companies, would like to build making references to Luca Parnasi including Eurnova, owner of the land in Tor di Valle.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/conti-in-rosso-per-la-roma-pronta-una-ricapitalizzazione-da-250-milioni-di-euro/ on Sun, 31 Oct 2021 06:43:58 +0000.