FW: Bologna FC

 

 

 

Jeffery:

 

I hope all is well…

 

We are in the process of acquiring the Bologna FC soccer club that will come with a new stadium site already identified for development. The team is valued below market and we anticipate returning her to prior glory with the right strategic partner.

 

Let me know when you have a moment to speak, we have completed a substantial part of the due diligence.

 

Bullet Points:

The Bologna Football Club is prominent from both a sporting and cultural prospective.  The team is approaching its centennial anniversary during which they have won six Italian championships.  It is the sixth most successful franchise in all of Italian soccer.  Bologna is one of the oldest and wealthiest cities in Italy and is strategically located for business and tourism. 

Bologna FC was relocated to the B Division four years ago because of the former owners’ failure to pay league transfer fees.  The team is on the verge of returning to the A Division.  We are in contract to acquire the team at 15 MM EURO, which is a small fraction of the value of the Serie A teams located in Italian cities.  The Serie A teams will begin revenue sharing in 2010 which will greatly increase Bologna’s revenues.  Our management approach will be to acquire players that will keep the team competitive in the A Division while increasing the asset value through branding and other tried and true business practices.

Additionally, there is an investment opportunity for the construction of a new stadium with hotels, and a commercial center on an already identified 364 acre parcel in close proximity to the city.

As I just stated, the Club is perfectly positioned to be promoted to Serie A at the conclusion of this year with only 4 games remaining.  We believe promotion would likely double the value for the Club day 1.  We have negotiated an exclusive sale with the current owner of the Club in a non-competitive and non-auctioned situation thanks to our close relationship with the seller over the past 6-months.  We believe this is a compelling opportunity for several reasons:

i)                    This Club has historically been a Serie A Club and the demographics (population, per capita GDP, local business environment) all support a Serie A Club.  The Club has only been in Serie B since the end of the ‘04/’05 season when it was relegated after gross mismanagement by the prior owner (prior to current).  This city ranks in the top 10 of Italian cities by population, size etc.

ii)                   We believe Italian football is about to experience a wave of M&A activity, similar to what the English Premier League (“EPL”) has experienced over the past 4-5 years.  This will be due to the popularity and high skill of the Italian game as well as the advent of collective media rights which are set to begin in the 2010/2011 season.  Also, the government has been discussing making public funds available to improve the stadium infrastructure which would enhance the fan experience, leading to higher attendance levels.  These are just some of the steps that we believe will be taken over the next several years that will greatly improve Italian football.  Our objective is to a be a “first-mover” ahead of this wave.

iii)                 We believe the transition from “mom and pop” ownership to more professional ownership will allow for the development of significant new revenue streams, particularly for commercial (sponsorship, advertising, retail and mail order) and ticketing revenue streams.  The work we have done with the Club so far supports this notion – there is no head of ticketing, no head of sponsorship etc. (very shallow management bench).

iv)                 Stadium – the Club plays its home matches in a 38,500 seat stadium, providing ample supply of seating from which to generate ticketing revenue.

v)                  Live football content is amongst the most compelling form of entertainment.  Football is a global game, with a global following and media rights for this content continue to grow by double to triple digits.  It draws the lucrative 18-34 male demographic.

 

If   you have any questions please feel free to call me at anytime on my mobile 917.392.6550

 

All the Best,

 

Francesco

 

 

 

Francesco Cascio

Principal

TAG Partners LLC

"Promoting Opportinistic Investments Worldwide"

New York City: 275 Madison Avenue, 35th FL, New York 10016

Tel: (212) 682-8720 Fax: (212) 619-1028

Roma: Via Ugo Ojetti 79, 00137 Roma - ITALY

Milano: Via Domenichino 35, 20149 Milano - ITALY

www.tagfund.net

 

 

Thought I would forward to you just in case.

 

 

Jeffery:

 

I hope all is well…

 

We are in the process of acquiring the Bologna FC soccer club that will come with a new stadium site already identified for development. The team is valued below market and we anticipate returning her to prior glory with the right strategic partner.

 

Let me know when you have a moment to speak, we have completed a substantial part of the due diligence.

 

Bullet Points:

The Bologna Football Club is prominent from both a sporting and cultural prospective.  The team is approaching its centennial anniversary during which they have won six Italian championships.  It is the sixth most successful franchise in all of Italian soccer.  Bologna is one of the oldest and wealthiest cities in Italy and is strategically located for business and tourism. 

Bologna FC was relocated to the B Division four years ago because of the former owners’ failure to pay league transfer fees.  The team is on the verge of returning to the A Division.  We are in contract to acquire the team at 15 MM EURO, which is a small fraction of the value of the Serie A teams located in Italian cities.  The Serie A teams will begin revenue sharing in 2010 which will greatly increase Bologna’s revenues.  Our management approach will be to acquire players that will keep the team competitive in the A Division while increasing the asset value through branding and other tried and true business practices.

Additionally, there is an investment opportunity for the construction of a new stadium with hotels, and a commercial center on an already identified 364 acre parcel in close proximity to the city.

As I just stated, the Club is perfectly positioned to be promoted to Serie A at the conclusion of this year with only 4 games remaining.  We believe promotion would likely double the value for the Club day 1.  We have negotiated an exclusive sale with the current owner of the Club in a non-competitive and non-auctioned situation thanks to our close relationship with the seller over the past 6-months.  We believe this is a compelling opportunity for several reasons:

i)                    This Club has historically been a Serie A Club and the demographics (population, per capita GDP, local business environment) all support a Serie A Club.  The Club has only been in Serie B since the end of the ‘04/’05 season when it was relegated after gross mismanagement by the prior owner (prior to current).  This city ranks in the top 10 of Italian cities by population, size etc.

ii)                   We believe Italian football is about to experience a wave of M&A activity, similar to what the English Premier League (“EPL”) has experienced over the past 4-5 years.  This will be due to the popularity and high skill of the Italian game as well as the advent of collective media rights which are set to begin in the 2010/2011 season.  Also, the government has been discussing making public funds available to improve the stadium infrastructure which would enhance the fan experience, leading to higher attendance levels.  These are just some of the steps that we believe will be taken over the next several years that will greatly improve Italian football.  Our objective is to a be a “first-mover” ahead of this wave.

iii)                 We believe the transition from “mom and pop” ownership to more professional ownership will allow for the development of significant new revenue streams, particularly for commercial (sponsorship, advertising, retail and mail order) and ticketing revenue streams.  The work we have done with the Club so far supports this notion – there is no head of ticketing, no head of sponsorship etc. (very shallow management bench).

iv)                 Stadium – the Club plays its home matches in a 38,500 seat stadium, providing ample supply of seating from which to generate ticketing revenue.

v)                  Live football content is amongst the most compelling form of entertainment.  Football is a global game, with a global following and media rights for this content continue to grow by double to triple digits.  It draws the lucrative 18-34 male demographic.

 

If   you have any questions please feel free to call me at anytime on my mobile 917.392.6550

 

All the Best,

 

Francesco

 

 

 

Francesco Cascio

Principal

TAG Partners LLC

"Promoting Opportinistic Investments Worldwide"

New York City: 275 Madison Avenue, 35th FL, New York 10016

Tel: (212) 682-8720 Fax: (212) 619-1028

Roma: Via Ugo Ojetti 79, 00137 Roma - ITALY

Milano: Via Domenichino 35, 20149 Milano - ITALY

www.tagfund.net