WithU: money on loan to sponsor Yamaha, Monza football and Bergamo Basket?

WithU and RNF

Eventually, in the resource war, the razali-Yamaha package made it first and won it- taking the WithU badge.
The energy company, which until last year had distributed its support on more fairings and more riders, well advised, has chosen to go all in as main sponsor on a team that is not of the highest level but still with high visibility.
To pay the price VR46, in contention and considered by many to have an advantage for the sponsorship, but which with its unstable situation in terms of structure, on the one hand it was not attractive for WithU and on the other, lacking a main sponsor, is still struggling with the completion of its programs.

For the more curious and analytical, however, perhaps it is useful to understand WithU’s financial background and how to access the resources it uses to sponsor its activities which are many and not only concern MotoGP but also Football (Monza), Basket Bergamo (of which Ballarin, President of Europe Energy, holds the relative majority with 45% and which sponsors with 450 thousand euros per two-year period) and, still currently VR46 and some riders as personal sponsor. Europe Energy, therefore WithU, had also attempted to rescue women’s volleyball team in Bergamo, offering the same amount offered in basketball and looking for a partnership, never successful, with other entrepreneurs.

The company, founded in 2007, is headed by the holding Europe Energy Holding srl, controlled by the president Matteo Ballarin. It is located in San Martino Buon Albergo (Verona) and closed its financial statements at September 2020 with a turnover of 624 million euros, an ebitda of 18.7 million and a net debt of 46.3 million with operations mainly in Italy and in Eastern Europe.

In short, it is a company that moves capital but substantially, at a loss as  reports the  Leanus report published by Bebeez.

Ultimately, WithU, in short, applied for funding to advertise and buy sports teams.
Net of technicalities, parolisms and financial explanations, the gist is this.
Regardless of whether the writer or reader is a finance expert or not, a document (attached) is easy to read.

Press release Azimut_CS_Europe_Energy 

In summary it says that

“Milan, July 26, 2021. Europe Energy, an international group active in the electricity and gas market specializing in trading, consulting and direct sales to end users, has obtained a direct loan of 5 million euros through the Azimut Direct platform , the
fintech of the Azimut group specialized in extraordinary finance for SMEs. The loan, signed by an institutional investor, has a duration of five years and is backed by the Italian Guarantee with coverage of 90% issued by Sace. ”

We are not the ones saying that the financing is used to make markeging and sponsorships but it is written in the same press release:

“The loan will be aimed at supporting marketing and communication investments, as well as the development of important product distribution technologies. The operation complements the 4.5 million loan from last September 2020, also concluded through Azimut Direct
(at the time Epic SIM).
Antonio Chicca, Managing Director of Azimut Direct: “Our goal is to bring new finance to SMEs by providing them with attention, quick responses and better access to the capital market. Building long-term relationships and supporting the growth of high-potential companies such as Europe Energy over time is a double result for us ”.

So the millions are 9.5 in two years, to buy, to put it simply, advertising.

Maybe it is a consolidated practice but it is important, for those who want to know who their interlocutor is, if they have never heard of it before, to know that an Italian company, an energy reseller, is asking for a loan to advertise.
Of the last 5 million, 2 million (it is said) will be employed to be the main sponsor of a company, Razali’s RNF, based in London.
The rest, evidently for marketing activities on other national media and for activities related to sponsorships. But in reality it could always be a flow linked to similar or less visible MotoGP activities.
In short, money that, theoretically, at least as far as racing is concerned, goes out of Italy.

In case there is any curiosity about Azumut Diretc, here is some information.
Azimut Direct (recent merger between Epic Sim and Azimut), is a company that has lent money to WithU, but also to Companies that produce Industrial Plants (CRS Impianti), companies that sell used cell phones (YouniteStars spa), and to Udinese Calcio (20 million euros, of which 15 million through a bond and another 5 million through a loan, both supported by the Sace Italian Guarantee, with a five-year duration and subscribed by institutional investors).
Azimut Direct also acts as an intermediary for direct lending loans (€ 2.5 million for Coopbox Group spa, a leader in Italy and Europe in the food packaging sector).

It is interesting that almost all the financed companies are on the second loan in a short time, both with Azimut or with Epic Sim, the name of the company before the merger with Azimut or with similar operations.

If anyone were to ask the meaning of the article, it’s easy:
Understanding whose money it is, where the money comes from, where the money goes.



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