Thread by @SwissRamble

#ASRoma 2017/18 accounts cover a season that the board described as “great”. They finished third in the league and thrilled their fans by beating Barcelona to reach the Champions League semi-finals before being eliminated by Liverpool. Some thoughts in the following thread.

#ASRoma loss before tax halved from €36m to €18m, largely due to their Champions League exploits, which contributed €98m to revenue (TV €84m & match day €15m), offset by a €41m fall in profit on player sales to €54m. After tax the net loss decreased from €42m to €26m.

Excluding player sales #ASRoma revenue rose €74m (40%) from €183m to a record €257m, mainly due to TV up €52m (46%) to €167m. Match day increased €13m (49%) to €39m & commercial was €11m (32%) higher at €45m. Incl player sales, revenue up €42m from €278m to €320m.

#ASRoma wage bill climbed €14m (10%) from €145m to €159m and player amortisation also increased by €3m (5%) to €56m. Other expenses were cut by €3m (4%) to €86m and depreciation fell €2.5m (47%) to €3m, but net interest payable rose €3m (16%) to a hefty €25m.

Despite the improvement, #ASRoma €18m loss before tax is the second highest (worst) in Italy. It is worth noting that seven of the 12 Serie A clubs that have reported to date in 2017/18 are profitable, led by Fiorentina €55m, Torino €54m, Atalanta €40m and Lazio €40m.

Situation is much the same after tax with #ASRoma’s €26m deficit only behind Milan’s shocking €126m. Largest losses have been reported by Italy’s traditional “big four”, as the giallorossi are followed by Juventus €19m & Inter €18m. However, Napoli had €67m profit in 16/17.

#ASRoma loss would have been higher without €54m profit on player sales (Nainggolan to Inter €32m, Emerson to Chelsea €18m & Skorupski to Bologna €9m). Losses on Iturbe €3m & Doumbia €2m. Much less than Napoli €104m (Higuain to Juve 16/17), Juve €94m & Fiorentina €87m.

The last time that #ASRoma reported a profit was in 2009. Since then, they have suffered losses 9 years in a row, adding up to a hefty €270m, averaging €30m a season. The reduced loss in 2017/18 was largely due to their Champions League run, which is unlikely to be repeated.

Profit on player sales is increasingly important for #ASRoma, averaging €52m in last 5 seasons vs only €16m in previous 4 seasons. Excluding this, the 2017/18 loss would have been €72m. This season will benefit from Alisson to Liverpool €62.5m & Strootman to Marseille €25m.

#ASRoma EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), considered as a proxy for cash operating profit, as it excludes once-off items like player sales and exceptional items, improved from negative €51m to €12m in 2018, the best result since 2009.

#ASRoma EBITDA of €12m is now actually one of the highest in Serie A, though still only around half of Juventus €28m and Atalanta €22m. It’s also miles below the best performers in 2016/17, namely Napoli €74m and Inter €57m.

#ASRoma revenue growth highlights the importance of qualifying for Europe, particularly the Champions League. The €257m record revenue in 2017/18 was greatly influenced by €98.4m from Europe’s leading tournament: TV €83.8m + match day €14.6m.

Following the sharp growth in 2017/18, #ASRoma €257m revenue is now the third highest in Italy, but still less than two-thirds of Juventus’ €411m and also behind Inter €280m. Roma’s revenue mix: broadcasting 65%, commercial 18%, match day 15% and player loans 2%.

Since 2011 #ASRoma have grown revenue by €107m (75%), using the Deloitte Money League definition. Although this growth is worse than Juventus, who have powered ahead by €257m (167%) in the same period, it is better than all other Italian clubs (Napoli still to report in 17/18).

Based on 2016/17 revenue #ASRoma were 24th in the Deloitte Money League, sandwiched between Zenit Saint Petersburg and Borussia Mönchengladbach. They should be comfortably back in the Top 20 this season, thanks to the Champions League, but they had been as high as 9th in 2007/08.

#ASRoma had €83m domestic TV money. Serie A distributed: 40% equal share; 30% performance (5% last season, 15% last 5 years, 10% historical); 30% profile (25% supporters, 5% population). Also included Roma library €4m and TV €3m. New deal from 18/19 with equal share up to 50%.

#ASRoma earned an amazing €82m TV money for reaching Champions League semi-final in 2017/18, €54m more than the €28m from Europe the previous season and only beaten by winners Real Madrid €87m. In Italy slightly higher than Juventus €78m, but more than twice Napoli’s €38m.

#ASRoma earned €7.5m more Champions League revenue compared to Juventus for going one round further, but the bianconeri received €4m more from the TV pool, as 1st half is distributed based on finishing position in previous season’s domestic championship (1st 50% vs 2nd 35%).

#ASRoma have earned €225m from Europe in the last 5 seasons, only surpassed in Italy by Juventus’ €404m, but comfortably ahead of Napoli €170m, Lazio €54m and Milan €50m. This is particularly impressive, as they have only qualified for Europe in last 4 seasons.

Champions League revenue will rise by 54% in 2018/19. However, there is a new UEFA coefficient payment (based on performances over 10 years), where #ASRoma are only ranked 22nd of clubs competing this season (worth €12m). Benefits clubs like 6th ranked Juventus, guaranteed €30m

#ASRoma match day income rose €13m (49%) from €26m to €39m, split domestic €24m (up €2m) & Europe €15m (up €11m, thanks to CL). This was 2nd highest in Italy, only below Juventus €56m. Note that club accounts include UEFA prize money here, but I have reclassified to TV.

In 17/18 #ASRoma average attendance rose from 32,638, to 37,450, the 5th highest in Italy behind Inter, Milan, Napoli and Juventus. The club has been looking to build a new stadium, which could double revenue. Tentatively planned for 2020/21 season.

#ASRoma commercial income increased €11m (32%) from €34m to €45m, partly due to €6m signing fee from new shirt sponsor Qatar Airways (€11m a season up to 20/21). Still only around a third of Juventus €146m & Inter €137m. Also below Milan €69m, but overtook Napoli €39m.

#ASRoma had been without a paying shirt sponsor since 2013, but Qatar Airways €11m is their highest ever deal. Nike kit deal €6m. Still long way behind Juventus €40m: Jeep €17m + Adidas €23m. But also have back-of-shirt sponsor Hyundai €8.5m & training kit Betway €5m.

#ASRoma player loans income down €2m (26%) from €8m to €6m. Mainly relates to Mario Rui (Napoli), Doumbia (Sporting Lisbon) and Sadiq (Torino). Leading the way in Italy are Sampdoria €16m, Udinese €14m, Genoa €10m and Palermo €9m.

#ASRoma wage bill increased by €14m (10%) from €145m to €159m, mainly due to higher (Champions League) bonuses. Despite this growth, the wages to turnover ratio decreased from 79% to a very respectable 62%, much improved against the 87% in 2012.

#ASRoma wages have grown by €52m (49%) since 2011, but have been significantly outpaced by Juventus (up €119m). Napoli may also be higher when 2018 results published. On the other hand, both Milan & Inter have seen their wage bills dramatically cut (€42m & €39m respectively).

#ASRoma now have the 2nd highest wage bill in Italy of €159m, just ahead of Inter €151m and Milan €150m, but a full €100m below Juventus €259m. There is then a sizeable gap to the next clubs: Napoli €102m, Lazio €80m and Fiorentina €63m.

Following the decrease to 62%, #ASRoma wages to turnover ratio is mid-table in Italy, around the same as Juventus 63% and Lazio 62%. Half the Serie A clubs are within the 60-70% range.

#ASRoma player amortisation, the annual cost of writing-off transfer fees, rose €3m (5%) from €53m to €56m, which means that this expense has doubled in 4 years (from €28m in 2014).

As a result, #ASRoma player amortisation of €56m is the 4th highest in Italy, but only around half of big-spending Juventus €107m, and also below Napoli €76m and Inter €74m.

#ASRoma have significantly increased gross transfer spend, averaging €96m in last 4 years, compared to €54m in preceding 6 years. However, their average sales have increased even more from €40m to €119m, which means that net spend has fallen from €14m to net sales of €23m.

In fact, over the last 4 seasons, #ASRoma have the lowest net spend in Serie A (or, more accurately, net sales of €90m). In stark comparison, the three biggest spenders over this period are: Milan €279m, Juventus €259m and Inter €152m.

It’s another story in gross spend with #ASRoma €385m being the 4th highest in Italy, though only around half of Juventus €757m. Also behind Inter €439m and Milan €432m. 2018/19 purchases include Nzonzi €27m, Pastore €25m, Kluivert €17m and Defrel €15m.

#ASRoma net financial debt increased from €193m to €219m, as gross debt rose from €261m to €266m, with cash down from €69m to €48m. Debt largely €218m for loan agreement with Goldman Sachs and Unicredit, €26m from holding company and €20m overdraft.

#ASRoma gross debt of €266m is the third highest in Italy, behind Inter €429m (another Goldman Sachs financing) and Juventus €329m (mainly for new stadium).

#ASRoma net interest payable was up €3.4m (16%) to €24.7m, the 2nd highest in Italy, only surpassed by Inter €33m. Credit line increased from €175m to €230m, but interest rate unchanged (Euribor 3 months, min 0.75%) + 6.25%. This annual payment is a big competitive burden.

In addition, #ASRoma owe €176m in transfer fees, an increase of €47m over prior season’s €129m. This is the highest in Italy, just ahead of Juventus €175m. Other clubs owe Roma €88m, so the net balance is now also €88m, which is a sizeable rise from €18m in 2016/17.

#ASRoma have been very reliant on increases in capital from their owners, including €70m in 2016/17. These have added up to €200m over the last seven years. In addition, shareholders approved a further €120m increase in the October 2017 AGM.

For the time being #ASRoma are no longer under a FFP review after being released from their settlement agreement in June. They had been fined €6m by UEFA after failing to meet the maximum €30m deficit for 17/18 monitoring period (covering 2015-17) after allowable deductions.

It was amazing that #ASRoma got to the Champions League semi-finals, but they will need to continue to qualify for this competition and finally move to a new stadium to build the sustainable model so desired by owner James Pallotta (and required to meet FFP challenge).