The difference in the first division, B and C league are all in playing with the joining of private stock companies to “Mad Rush” to buy a number of dwindling assets.
In March, the Italian football clubs, Italian football (AC MILAN), made a bold play: buying the legendary stadium Mazza and its surrounding area, a real estate deal that is scheduled to conclude in July.
After San Siro’s famous participation since 1947, competitors are cooperating to create an elegant and sustainable new stadium that can redefine the football scene in Milan (football, to conceal the Americans). The proposal includes a major project for urban renewal aimed at attracting international fans while providing new benefits to the local population. San Siro, after hosting football for more than 75 years, seems to have a transformation he deserves.
Such a talk about updating old and esteemed sports facilities in Italy is not new. But what makes the ball roll this time the main support from the US -based private stock investors. The last Inter acquisition by Oaktree Capital, with an investment of 47 million euros (about 51 million dollars); And Milan’s Milan 1.2 billion euros of Redbird Capital in 2022, putting the way for a large future like the legendary clubs themselves.
The PE players seem to change the football game one purchase each time – and enjoy the tax benefits that come with it.
According to a report issued by PWC- one of the largest accounting companies that advise these matters-“sports institutions turn to institutional investors to provide capital to finance growth projects, such as renewing stadiums, transformations to direct business models of the consumer, and international expansion.”
These investors, for their part, see football fields in Italy as prosperous companies with long -term capabilities. They ask how technology can turn it into smart revenue enhanced places. By taking advantage of the assets of experience and current assets, investors see opportunities to improve care deals and nominate rights and create synergy that adds value.
“These are things that many clubs do not do at the present time,” says Eric Andleman, a lawyer at Hugan Luvils, a specialist in sports development, entertainment and project development. “All investors who come here look at these different opportunities and ways to revolutionize the club.”
In Italy, the PE football clubs now have enough money not only to build new stadiums but to allocate operating costs, player wages, and stadium promotions as work expenses. Infrastructure investments such as regeneration of stadiums may qualify incentives such as “super choice”, which allow companies to demand accelerated registration on assets, reduce tax income, and provide immediate savings.
This encourages investment in capital improvements, as PWC argues. There are also tax credits related to sports care, which may benefit companies participating in developing football fields through advertising partnerships.
To hellas and return
Oaktree and Redbird are not the only players looking for new stadiums. In January, the Texas -based Presidio Investors swooped to get HELLAS Verona FC with a rating of 130 million euros.
There is a possibility that the football club will earn more if it maintains its feet in the first division and is not fell to the first division – a big blow to any team. Why? Because it will lead to a significant decrease in revenue, especially from television deals, care, and entered the day of the match. The main players of first -class clubs leave, weakening the team’s chances of return. The participation and care of fans also suffers, and the club faces difficulty in securing the promotion of the first -class league, and the threat of growth and stability.
For HELLAS, this scenario has become a reality on several occasions. In the last selection, the club is ranked 14th among the upper flight teams in Italy. For frustrated fans, hope is that Presidio can weaken more than just hope for the club’s future. There is the ability to generate cash flow and deepen the seat with a new talent.
“For special fairness, the story is completely different, because it usually adopts a more organized approach. They are trying to emphasize long -term growth,” says Paula Barometero, a partner in the practice of financing companies in Hogan Lovils.
Financial sponsors such as Presidio, which is advised by Barometro and Andalman in the Hellas deal, focuses on increasing revenues through licensing, marketing and investing the fans base.
“Now, at least in Italy, we have a very interesting mixture of investors who also think it brings different management patterns and creates a dynamic environment.” Ten years ago, this was not heard.
“Only to give you a sense of the trend in Italy; in 2011, all clubs in the first -class were owned by individuals or Italian companies,” you note. “So, the trend is now completely different.”
In 2020, US billionaire Dan Friedkin assumed the reins of Associazione Sportiva Roma from the former owner James Balota. The Friedkin Group has feed the financial revival with a mixture of smart commercial deals and the end of the Steel League.
The new PE owners hope at Hellas Verona to imitate this magic. Like ROMA, helllas currently does not have its own stadium.
Rome participates in Astadio Olympico with Società sportiva lazio. Although Rome has long has plans to build its custom facility, the project faced many delay and complications, including political issues and problems of dividing regions and financial obstacles.
For a few short months, Hilas Verona had a better luck. Its current home, Marcantonio Bentegodi, was opened in 1963 and was last renovated before the 1990 World Cup. The fact that the mayor of Verona, Damiano Tomasi, is a former Ferona football player who helped move things. Now it seems that American investors are ready again to activate a historical place in Italy.
“Madness”
The trend is not exclusive to Italy. The Premier League future has recently become American as well.
“We are ten years old now,” says Mark Trutier, a partner at the law firm, Brian Caif Leiton Besner, noting that half of the league teams teams are now subject to US ownership of the United States in the United States. “The growth and value of clubs has been huge over the past few years.”
Among the most prominent constellations are Arsenal, Chelsea, Liverpool, Manchester United and Everton, it is “one of the enormous origins.” After buying Friedkin in December, the club plans a “beautiful new stadium” in Bramley-More Dock.
While the UK clubs lead the signs of inflated prices, Italy offers the makers of deals with a more affordable entry point. With a very large number of buyers and the scarcity of assets, this is a problem.
SIM, 10 teams in the First Division have entities in North America as well. In addition to Inter Milan, AC Milan, Roma, HELLAS Verona, the owners of North America also owns Parma, Venezia, ACF Fiorentina and Pologna (owned by Canadian and Club de Foot Montré Presentent Joey Saputo).
“There is a crazy impulse,” says Trotia. “There are only many football teams that you can buy. There are low league clubs as well, but there is a lot that you can invest, and people are concerned about losing these deals.”
Rumors are abundant in terms of other clubs in the first division and even the lower sections. Clubs in the Italian First Division, the second league in Italy, mature investment because of their ability to promote the IDP, the upgrade will lead to a significant increase in TV rights, care deals and the revenues of the match.
Although Serie C clubs may not provide immediate financial rewards for Derie A or Derie B, they provide a low -cost entry point for investors looking to build a long -term value.
“There are many teams that are possible to sell if they get the right offer,” says Salvo Arena, a prominent member of M&A. Low league teams “slightly cheaper, but you have a big aspect.”
Currently, this trend towards ownership is predicted in Italian football. With Pressidio investors ’acquisition of Hellas Verona as the latest example, more companies are expected to follow.
“There is very great interest and now they are the ones who buy,” says Arena. “There is no hesitation on that. I receive a lot of calls from Derie A, B and C. He asks all owners,” You know someone who wants to buy my team? “
