In an interview done last May by the Wall Street Journal, James Pallotta just seemed to have some interesting ideas on how to develop the AS Roma brand in the world.
Nowadays, just a month after that interview, we have to think again about Pallotta’s knowledge of the world of business, entertainment, media and everything that revolves around it.
What was probably only his competent opinion or his ambition: “Next year AS Roma will be worth half a billion” is suddenly more understandable by most of us. Pallotta’s business plan seems to be really interesting because it is carefully created with just one ending purpose…to make the AS Roma become a profit machine.
Supporters can keep calm, this project needs time to be perfectly realized however, this is not the main point of this article.
Pallotta and his collaborators exactly know what they have to do and with who they have to speak to in order to reach their goals. The recent partnership with the famous CAA Sports is just the last piece of a mosaic that will be useful to create a masterpiece. The sale of the naming rights is a practice that has been utilized by a variety of teams to not only raise money, but to help with paying off the huge cost of building a stadium in the first place.
The Richest, as stated in the official website, is a known reputable brand and a strong business & leisure resource covering mainly timely events and interesting facts about high profile people. Nitin Bhandari, a writer of the Sport Money section, wrote a very comprehensive list called the “Top 10 biggest stadium naming rights” to highlight the power of closing this kind of deal in the world of sport. Let’s check it out together…
-Atlanta Hawks–Philips Arena–$185 Million/20 Years
-Dallas Mavericks/Stars–American Airlines Center–$195 Million/30 Years
–Brooklyn Nets–Barclays Stadium–$200 Million/20 Years
–Washington Redskins–FedEx Field–$205 Million/27 Years
–San Francisco 49ers–Levi’s Stadium–$220 Million/20 Years
–New England Patriots–Gillette Stadium–$240 Million/30 Years
–Houston Texans–Reliant Stadium–$310 Million/31 Years
–New York Giants/Jets–MetLife Stadium–$400 Million/25 Years
–New York Mets–Citi Field–$400 Million/20 Years
–Dallas Cowboys–AT&T Stadium–$400 Million/20 Years
This accurate list, made in crescent order of profits, highlights that the team who earns less money from the naming rights deal is the Atlanta Hawks and the one who earns the most is the Dallas Cowboys. The team of Atlanta gains a profit of around $ 9 million while the team of Dallas earns $ 20 million per year.
Coming back to the AS Roma team and James Pallotta’s desire to transform the team in to a money machine we can say that the agreement with the CAA Sports is a really wise move. Pallotta & Co. would like to receive from the naming rights around 10 / 15 million euro per year. A great amount if we sum it to the other money that should come from the sponsor on the jersey and that should be almost the same amount. In this way the team could have an easy self-sustainability due to the approximately 25 / 30 million euro that every year would bring fresh air to the AS Roma account.
In addition, these profits would be used to manage the team as well as to buy new players in order to create a competitive team able to regularly participate in the UEFA Champions League. We are all aware about the benefits of participating in the most prestigious European cup…around 30 million euro each time.