Football Business Desk
majority acquisition · Italy · Serie A

AS Roma

The Friedkin Group acquisition · 6 Aug 2020

Buyer
The Friedkin Group
Seller
James Pallotta (via NEEP Roma Holding S.p.A. / AS Roma SPV LLC)
Stake acquired
86.6%
Control
Yes
Reported consideration
€63.4m
Implied equity value
€73.2m
League
Serie A
Country
Italy
Confidence
HIGH
Transaction overview

The Friedkin Group acquired a 86.6% majority stake in AS Roma from James Pallotta (via NEEP Roma Holding S.p.A. / AS Roma SPV LLC), announced 6 Aug 2020, closing 17 Aug 2020.

Reported consideration was €63.4m. That implies a 100% equity value of €73.2m (calculated by us). Announced enterprise value was €591m. €528m of debt was assumed or restructured.

Nearest pre-acquisition revenue was €141m (FY 2019/20), an equity value / revenue multiple of 0.52x.

Announced
6 Aug 2020
Closed
17 Aug 2020
Stake after transaction
86.6%
Status
completed
Valuation

Reported consideration

What the buyer reportedly paid for the stake

CONFIRMED

Implied 100% equity value

Calculated: consideration ÷ stake acquired

CALCULATED

Reported club valuation

UNAVAILABLE

Enterprise value

Only shown when debt/cash near the transaction date is established

CONFIRMED

Debt assumed / restructured

CALCULATED

Primary capital injection

UNAVAILABLE

Total announced investment commitment

Commitments are not purchase price and not valuation

UNAVAILABLE
Equity value / revenue:
CALCULATED
Club at acquisition

Nearest pre-acquisition financial year: 2019/20

Revenue

FILED

Wages

UNAVAILABLE

EBITDA

UNAVAILABLE

Net debt

FILED

Net income

FILED
Analyst noteWhat is known, what is uncertain, and how figures were derived

The widely reported €591m 'sale price' is an enterprise/transaction value, not what Friedkin paid for equity control. CONSOB forced Friedkin to disclose the actual equity consideration for the 86.6% stake: €63.414m (€0.1165/share) — the same per-share price used in the subsequent Art.106 mandatory tender offer for the remaining 13.4%. The gap between €591m and €63.4m (~€527.6m) is overwhelmingly debt, shareholder loans tied to a capital increase, and stadium-financing obligations assumed/committed by the buyer, not cash paid to Pallotta.

Sources (4)
  1. 2020-08-11 · it — “CONSOB pushed for clarification; Friedkin confirmed the consideration for the 86.6% stake is €63,414,047 (€0.1165/share), while the reported €591m operation value is composed almost entirely of debt, intercompany loans and recapitalization commitments (€8.486m other shareholdings, €111.079m shareholder loans, €16.019m stadium financing, plus further indebtedness).”

  2. 2020-08-06 · it — “Friedkin acquired 86.6% of AS Roma (3.3% direct + 83.3% via Neep Roma Holding S.p.A., plus ASR Soccer LP and ASR Retail TDV) at €0.1165/share; agreement signed overnight August 5–6, 2020, with completion targeted by end of August 2020, ending Pallotta's eight-year tenure.”

  3. 2020-08-17 — “Friedkin Group, via Romulus and Remus Investments LLC, acquired 100% of AS Roma SPV LLC (holding ~86.6% of AS Roma) on August 17, 2020, and confirmed it would launch a mandatory tender offer for the remaining 13.4% of shares.”

  4. 2020-11-01 · it — “FY2019/20 filed accounts: consolidated revenue €141.25m (down 39.3% YoY), net loss €204.028m, negative equity €242.448m, negative net financial position €299.76m, gross financial debt €317.5m, personnel costs at 109.8% of revenue.”