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HomeSport M&AAre Italian Football Clubs Undervalued?

Are Italian Football Clubs Undervalued?

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Italian football clubs rarely make the headlines regarding valuations unless it is a championship club such as AC Milan  being purchased by Redbird Capital Partners for $1.3 Billion Dollars

Italian clubs have recently become a popular target for overseas investors, attracted by cheaper valuations compared with those of England’s Premier League and rivals in major European leagues.

Of the 20 Serie A Italian clubs, eight now have non-Italian owners. Six of those were acquired by American individuals or financial groups in the past three years alone.

One of the leading M&A Advisors to Italian Football clubs is www.mergerscorp.com  Stefano Endrizzi, the founder of this advisory group stated “We have agents throughout Italy that are focused on Football, and work directly with the owners of the teams to align their interests with those of our investors” Endrizzi referred to a recent transaction in which his company was the Advisor https://www.lacasadic.com/news-serie-c/fidelis-andria-main-sponsor-7crocketts/

“It’s a perfect model, really, for private equity, because private equity goes in, and they look at undervalued assets that in some cases are mismanaged,” says Matt Rizzetta, whose North Sixth Group acquired a stake in Ascoli,. “Italian football clubs historically fit that model perfectly. There are six or seven streams of revenue that the clubs potentially can generate and I would bet, on a good day in a good club, you’re lucky if two or three of those revenue channels are being leveraged properly. So when you look at it from an investment standpoint, you can go in and turn one of those clubs into an incredibly profitable, successful platform.”

The lower tier clubs have a unique challenge in determining how much to value their Team at as most transactions are not listed or promoted by the media. New York-based private equity managers Robert Lewis and John Aiello acquired a majority stake in Cesena FC, an Italian soccer club

Lewis, and Aiello, talked  about the reasons behind their investment decision.

“Italian Soccer, An ‘Undervalued Asset’

In this era of a stock market in decline, sophisticated investors are seeking a good value and the ability for a substantial  return on their investment. A bit of enjoyment with zealous  fans cheering your team on is an added benefit to this alternative investment.

MergersCorp™ M&A International is a leading Lower-Middle Market M&A advisory brand, offering professional M&A services to clients across the world. Today MergersCorp™ M&A International has 110+ Advisors in 20+ Countries.

For more information visit MergersCorp.com and Businesses for Sale.

Edward Sklar
Edward Sklar
Edward Sklar
Mergers & Acquisitions,Business Broker/Valuation/Due Diligence/Real Estate/Sales/Business Development/CEO/President/Managing Partner/Chief Operating Officer

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