All the own goals in the accounts of Juventus
What will happen to Juventus' balance sheet after the defeat in the Champions League.
In 2018 Cristiano Ronaldo arrives at Juventus with one goal: to win the Champions League . Two and a half years after the hiring of the holder of five golden balls (and a year and a half after the expiry of his contract) the most prestigious title has not yet been seen passing through the parts of Turin. And also this year the bianconeri saw the opportunity to take home the “cup with big ears” fading. A sporting failure, of course, but also an economic one.
How much does Ronaldo cost
Cristiano Ronaldo cost 115.5 million . But that's not all, the Portuguese weighs on Juventus accounts for about 86.2 million every year (about 28.8 million in depreciation and 57.3 in gross salary, which rises to 64 considering the cost of the company). The signing of Mr. Champions (he has won 5 in his career, 4 with Real Madrid and one with Manchester United) has led to an increase in the cost of the squad (registered salaries + depreciation) which went from 300 million in 2017 / 18 to 388.9 million euros in 2019/20.
How much has Ronaldo paid for
Cristiano Ronaldo had an undoubted impact from a commercial point of view . In the 2017/2018 season, Juventus sponsored revenues amounted to 86.9 million. In 2019/20, despite Covid-19, the Juventus club recorded revenues of 129.6 million with a very significant increase of + 49%, which could rise again in 2020/21 considering that in the first half of the year commercial revenues were equal to 69.5 million (+ 6% compared to 31 December 2019). Growth due to renewals with Adidas (agreement passed from 23 to 51 million per season) and with Jeep (from 17 to 45 million per year), a brand that is now part of Stellantis (whose majority shareholder is Exor , the family holding company Agnelli-Elkann).
How much does the elimination from the Champions League cost?
Juventus will pay dearly for the lack of success in the match against Porto . First of all, the immediate collapse of the stock on the stock market (-8%), to which will be added the lost revenues in the richest competition in Europe. Suffice it to say that only the quarters were worth 10.5 million euros . It is not possible to estimate, but it is reasonable to imagine, any negative side effects on sponsors and marketing. A decline that was not needed for Juventus' balance sheet, already experienced by a year of negative fallout from the Covid-19 crisis.
Loss of revenues from the Champions League
As La Stampa recalls, the last half-yearly report as at 31 December 2020 saw losses double with 113 million in liabilities, while revenues fell by 20% to 258 million and shareholders' equity thinned from 239 to 125 million. The Champions, if carried to the end, can yield up to 130 million in Uefa prizes. From this edition, the bianconeri will collect just over 83 million, a little less than last year when they were 86.4.
Juventus: accounts in the red
According to Juventus' annual financial report, the club recorded revenues of € 573.4 million in the 2019/2020 financial year , down by 7.7% compared to the figure of € 621.5 million in the previous year.
Specifically, revenues from tenders amounted to 49.2 million euros, compared with 70.7 million euros in the previous year, decreasing by 21.5 million. This decrease is mainly due to the effects of the Covid-19 pandemic which forced some races to be held without the presence of the public. The decrease is mainly due to lower ticketing revenues for UEFA Champions League home matches (-8.6 million euros), lower ticketing revenues for championship home matches (-7.8 million euros), lower revenues from season tickets (-5.8 million euros) and lower revenues from additional tender services (-1.6 million euros). These losses were partially offset by higher revenues from friendly match wages (+1.8 million) and higher revenues from ticketing for Coppa Italia matches (+0.5 million). Revenues from the sale of products and licenses also decreased, from 44 million last year to 31.7 million this year. Income from the “Membership”, “Stadium Tour & Museum” and “Camp” commercial initiatives also decreased by approximately 10 million euros (from 34.1 million in 2018/2019 to 24.5 in 2019/2020).
Increase in value of Juventus
To these negative data, it should be added that since 2015 there has been an increase in the value of the company , so much so that the increase in the listing and the market capitalization was equal to approximately 40%. However, Juventus had to seek outside the necessary liquidity. In February 2019 it had to launch a 175 million bond to restructure the debt, then in December 2019 it had to foresee a capital increase of 300 million , in which Exor participated for 191 million, to cover the losses of recent years (-19 million in 2017/18 pre-Ronaldo, then -40 in 2018/19, -90 in 2019/20 and -113.7 at 31 December 2020, with the impact of Covid on the last two figures). Net financial debt went from 309.8 million at 30 June 2019 to 463.5 million a year later, falling to 357 million at 31 December 2020.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutti-gli-autogol-nei-conti-della-juventus/ on Thu, 11 Mar 2021 14:49:05 +0000.