Italian football clubs have recorded their worst financial performance in fifteen years, with a combined net loss of €1.4 billion ($1.5 billion) for the season ending in June 2022. This disappointing result comes despite the influx of international investment in recent years, which saw American firms like RedBird, 777 Partners, and Oaktree acquiring stakes in teams such as AC Milan and AS Roma.
While these investments have undoubtedly improved the performance of Italian clubs in European competitions, they have failed to translate into healthier financial standings. The main contributing factors to the massive losses are the drastic decline in ticket sales and broadcast revenues, largely due to the impact of the Covid-19 pandemic. The previous season alone saw losses of €1.3 billion.
As a result of these financial difficulties, debt has risen by over 4% in the following year, with the overall indebtedness of Italian clubs surpassing €5.6 billion for the 2021-2022 season, according to a report by PricewaterhouseCoopers (PwC). Furthermore, revenue from broadcast rights for Italy's Serie A, Serie B, and Serie C leagues shrunk from €1.38 billion in 2018-2019 to €1.25 billion in 2021-2022. Sponsorship, another significant source of income, has also decreased by 3% over the past four years.
The reliance on the domestic market poses a challenge for Italian clubs, with over 80% of their sponsorship contracts being tied to Italian sponsors. In comparison, the English Premier League, the wealthiest league in Europe, has only 53% of contracts originating in-country. Additionally, despite being the third most popular in terms of social media engagement, Italian league teams trail behind their counterparts in England and Spain. France and Germany are catching up, with follower numbers approaching those of Italian teams.
In contrast to the struggles in Italy, the UK's football landscape is dominated by private equity-backed clubs and foreign investment. However, even in the wealthy Premier League, some clubs are facing challenges. Chelsea FC, owned by Clearlake Capital and American investor Todd Boehly, is reportedly looking to raise capital after a disappointing season.
Despite the setbacks, investor interest in Italian football still exists. In May, a group of investors, including Andrea Radrizzani, the former controlling shareholder of English club Leeds United, made a €40 million bid for Genoa-based club Unione Calcio Sampdoria SpA. Additionally, there are reports that Goldman Sachs Group Inc. is considering providing financing to Serie A to help develop its media business, as the league has struggled to secure backers in recent years.