AS Roma takeover

AS Roma sold for €591m, with club president linked to Newcastle United

Italian football giant AS Roma has been acquired by Texas-based billionaire Daniel Friedkin, following weeks of negotiations over a purchase price which reflects the impact of the coronavirus pandemic on sport.

At the beginning of August Roma announced that formal contracts had been signed with the Friedkin Group for a transaction valued at €591 million (US$704 million), which sees the American company take an 86.6 per cent majority stake.

The deal, originally estimated to be worth around €750 million (US$893 million), was reduced to aid with the financial difficulties the coronavirus has caused. The virus has made it difficult to assess the club’s value after losing out on revenue streams such as, broadcasting, sponsorship and gate receipts.

It’s believed Pallotta rejected a bid in May of €575 million (US$685 million), working with Goldman Sachs bankers to help try and find a new investor. However, the club announced the agreement of €591 million, with the transaction expected to be completed by the end of this month.

Pallotta said in a statement, “Over the past month, Dan and Ryan Friedkin have demonstrated their total commitment to finalising this deal and taking the club forward in a positive way. I am sure they will be great future owners for AS Roma.”

Roma confirmed the resignation of previous chairman Jim Pallotta along with his board of directors, but chief executive Guido Fienga will remain in his role under the new owners.

“Our commitment to Roma is total. We will be very present in Rome, a city that holds a special place in our hearts, as we embark on this exciting journey. We recognise we are entrusted with a team that is a vital part of the soul of Rome, and this is a responsibility that we find humbling and will always take very seriously,” Friedkin said. “As business owners, we look to identify and back strong management teams and leadership. Guido Fienga has proven to be a great CEO of Roma, and together we have developed an ambitious and disciplined business plan. “We will give him the support, guidance and means to deliver on this plan and, to help maintain focus over these crucial weeks ahead, it will be primarily his voice that will speak for AS Roma.

“Our shared vision for the club and the team is to favour a sustained, longterm investment approach rather than questionable durability.”

In recent years, top players and coaches have opted for the Bundesliga, Premier League and La Liga, causing Serie A to fall behind. An increase in bureaucracy has surrounded Italy making it difficult for the league to compete with other European giants.

But, Friedkin’s takeover signifies that the league can still attract international investors. Crucial for the future of the league. Having said that, it is fair to say Friedkin has got a challenge ahead of him.

In 2014, Pallotta revealed plans for a 52,500-seater stadium, intended to be finished for the 2016/17 season. The plans faced many obstacles with building yet to begin. However, with high profile signings such as Ronaldo joining the league and Serie A’s potential private equity investment, there’s hope that Serie A can compete once again with Europe’s elite.

The deal between Pallotta and Friedkin also raises suspicion, as Pallotta has been linked with the takeover of Newcastle United. The sale of the Serie A club may facilitate the takeover following the proposal from Saudi Arabia’s Public Investment Fund (PIF), falling through last week.

Pallotta has been Roma’s president since 2012, after spearheading a takeover bid by a group of US investors, but had been open to selling the club for some time.

The billionaire, who is also the coowner and executive board member of NBA giants the Boston Celtics, has been repeatedly linked with a bid for Newcastle in the Italian press but has yet to comment on those reports.