Serie A club AS Roma was acquired by Texas-based billionaire Daniel Friedkin in a deal worth €591M ($700M), following weeks of negotiation over a purchase price that "takes into account the impact of the coronavirus pandemic on the sport." The team’s existing ownership group includes club President James Pallotta. Over recent weeks, the deal was revised down from the €750M ($888M) agreed between the parties late last year. Since then, the pandemic has resulted in a "steep fall in revenues for clubs." Pallotta had rejected a revised offer of €575M ($680M) from Friedkin in May. Under the terms of the "all-cash deal," Friedkin Group, the family investment vehicle which owns the Gulf States Toyota Distributors franchise, will acquire an 86.6% stake in the club. The remainder of AS Roma is owned by public market investors, and their shares "will be subject to a mandatory offer from the Friedkin Group" (FINANCIAL TIMES, 8/6).
Friedkin's takeover of AS Roma shows that Serie A "can still attract foreign investors who believe in the potential of both the league and its clubs." There is "still little word of what to expect from the new owners." KMPG Global Head of Sports Andrea Sartori said of Friedkin, "He has certainly been attracted by the brand of Roma and the city of Rome, one of the most visited in the world, with which he can create synergies with his existing businesses" (REUTERS, 8/6).
The €591M transaction includes €300M ($356M) that will be "used to cover the debt contracted by the club" and approximately €90M ($107M) that will be used to "recapitalize the company's accounts." The Friedkin group is currently looking for a new kit sponsor for next season after the club announced the "premature termination" of its 10-year partnership with Nike a few weeks ago. The search for new sponsors will be "essential to reduce debts and avoid the transfer of important players" (CORRIERE DELLO SPORT, 8/6).
AS Roma's owners "have been trying to sell for a while, holding talks with various potential buyers, amid growing frustration with local authorities over a stalled project to build a new stadium." Assets owned by the Friedkin Group "range from one of the world's largest independent Toyota distributors to a number of luxury resorts" (ESPN.com, 8/6).
