Roma subject of an investigation by the Italian financial authorities relating to period before Friedkins acquired club
AS Roma, the Italian side owned by prospective Everton owners, The Friedkin Group, could be landed with a significant fine relating to historical tax issues. An investigation was concluded last week.
According to Italian newspaper La Repubblica, Roma, along with other Serie A sides including Lazio, were the subject of an investigation by the Italian financial authorities, Guardia di Finanza, with the focus on the investigation being ‘unfaithful declaration’ in their accounting practices.
The issue relates to the financial period between 2016 and 2021, which largely covers when TFG weren’t owners of the Serie A side, having acquired them from James Pallotta in August 2020. An indictment request was sent to the club and former figures involved in its running during the period in question, including Pallotta, Mauro Baldissoni, Guido Fienga, Giorgio Francia, Umberto Maria Gandini and Francesco Malknecht.
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Investigators claim that during the period scrutinised the Rome club adjusted its balance sheet to generate higher non-deductible costs. That, it is alleged, was done through player exchanges between clubs that were disguised as sales and of excessive devaluation of player fees. The swap of Luca Pellegrini and Leonardo Spinazzola between Juventus and Roma in the summer of 2019, was among those scrutinised by the authorities. Alleged excessive devaluation of players including Edin Dzeko and former Stoke City and Blackburn Rovers player Steven Nzonzi were also placed under the microscope.
The potential fine could range from €17m to a maximum of €34m, representing administrative sanctions that the club might be liable for if it’s proven by that they failed to pay €19m in corporate income tax.
The case has now been passed to the Italian Revenue Agency for urgent verification due to the statute of limitations running out on the first financial year in question at the end of 2024.
The club have so far contested these allegations and refused to settle, something which would have reduced any financial penalty.
It should be noted that the investigation centres on large periods of time when TFG were not in control of Roma, with the investigation to have no bearing on the group’s ability to successful navigate their way through regulatory approval in the UK to complete the acquisition of Everton, with the anticipation that the process could be completed before the end of December.