The pandemic will cost Juventus around 320 million euros. For this reason, the Board of Directors, examining the impacts deriving from the prolongation of the health emergency due to Covid-19 and revised the Development Plan for the years 2019/24, confirming the objectives to be pursued – maintaining sporting competitiveness, increasing the visibility of the brand Juventus and consolidation of the economic and financial balance – and in support of it defined the guidelines for capital strengthening through a capital increase for a maximum of 400 million.
The costs of the pandemic
The overall economic impact of the direct and indirect negative effects of the pandemic is currently estimated at 320 million for the period between March 2020 and June 2022. The Juventus club estimates a progressive elimination of the restrictive measures during the year 2021/22 and a substantial and progressive normalization of the general economic context starting from the second half of 2022. As the press release explains, the pandemic has affected “numerous revenue items (mainly from tenders and products), the prospects for their realization or increase and other income (mainly related to the management of the players) and has increased certain cost items, generating a significant negative impact both of an economic and equity nature on the result for the year and on shareholders’ equity, and of a financial nature on the cash flow ».
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The capital increase
The Board of Directors, assuming to operate from the 2022/23 season in the absence of impacts related to the pandemic, confirmed the main strategic objectives of the Development Plan. In order to take into account the medium-term effects, it will be necessary to revise and extend the Plan itself. Exor expressed its support for the operation and undertook to subscribe the share of the share capital increase pertaining to it, equal to 63.8%. The company intends to set up a guarantee consortium for the subscription and release of any new shares that may not be subscribed and, to this end, has already initiated contacts with leading banking institutions. The proposed capital increase will be examined and defined at the meeting of the Board of Directors to be held in September 2021 for the approval, inter alia, of the draft financial statements for the 2020/21 financial year in view of the shareholders’ meeting scheduled for October 2021.
The new Ad
Finally, the Board of Directors resolved to assign proxies for the management of the Football Area and the related powers to Maurizio Arrivabene, former director of the company, and as of 25 October 2018.