For Juventus ‘Juve towards a significant loss also in 2021-2022’
The accounts of 2020/21
Juventus’ 2020/21 financial year should close with at least 190 million losses. This is what can be seen from the half-year report of the parent company Exor (which instead recorded consolidated profits of over 800 million), which for the Juventus club reports a loss of 77 million in the period from 1 January to 30 June 2021. The first half, for Exor, but the second for Juventus, which in the first six months of the previous year recorded a loss of 113.7 million euros. In total, therefore, the Juventus club’s accounts should close in the red for 190.7 million euros, although this is not a definitive figure on the actual Juventus losses. Those will be established by the Board of Directors of the Piedmontese company (on the agenda between 13 and 16 September) and it is yet to be understood whether and to what extent the data disclosed by Exor takes into account the transfer market operations carried out in the summer. First of all, the definitive sale of Cristiano Ronaldo to the Manchester United, which generated a “potential” loss of 14 million (bonuses of up to 8 million are expected in the sale price).
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Losses as at 30 June 2021 above 200 million
In February 2021, the Juventus board of directors approved the half-year report for the period July-December 2020 with losses of € 113.7 million, more than double the amount recorded a year earlier, in the first half of the 2019 financial year / 20, when the world was not yet grappling with the Covid-19 pandemic. Precisely the measures adopted to contain the contagion led to a contraction in the revenues of the Juventus club, which in the first six months of the current financial year recorded revenues of 258.3 million euros (64 million compared to the same period taken in examination in the previous year). Operating costs, on the other hand, were almost unchanged, increasing from € 260.9 to € 263.4 million. If the Juventus Board were to confirm the figures disclosed by Exor in its half-year report, therefore with a loss including over 190 million euros in the 2020/21 financial year, this would be the worst result ever for the Juventus club. The biggest loss so far was recorded in 2011, with a € 95 million red card. However, due to outgoing market operations, the figure could even worsen. To the aforementioned capital loss linked to the operation Cristiano Ronaldo, who moved to Manchester United in exchange for an adjustment of 15 million euros (payable in five years with bonuses of up to 8 million euros), Romero’s transfer to Atalanta must also be added, which in turn sold his tag at Tottenham. The redemption of the Argentine defender by the Bergamo players generated a negative economic effect of € 4.8 million in the 2020/21 financial year.
Fourth exercise in a row in red
For the fourth year in a row, therefore, Juventus closed with a loss. There pandemic of Covid-19, with the measures implemented to contain the spread of the infection, have played a decisive role in the worsening of the accounts. The protracted health emergency generated a significant negative impact on revenues, mainly from tenders and products, which can be estimated at approximately 50 million euros in the first half of the previous year alone. The estimates examined by the Juventus board of directors quantified the negative effects of the pandemic in the period between March 2020 and June 2020 at 320 million. The balance sheet as at 30 June 2021 closed with a loss of approximately 100 million.
Capital increase
At the end of August, the Board of Directors approved the proposed capital increase up to a maximum of 400 million euros, already announced at the end of June by the Juventus club and supported for its share (equal to 63.8%) by Exor. The majority shareholder of Juventus in the half year also indicated expectations for the next season: “Currently, for the 2021/2022 financial year, which is still severely affected by the direct and indirect effects of the pandemic, a significant loss is expected”. However, the company is confident in the return to normal pre-pandemic for an improvement in the situation: “In the hypothesis of a substantial return to normal in the general economic context by the second half of 2022, and thanks to the actions taken in the last year to rationalize the costs and recover the revenues that are effective in the medium term, the operating result and the cash flow of Juventus are expected to improve starting from the financial year 2022/2023 ».