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Capital increase already exhausted

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A new report from Calcio e Finanza suggests that Juve’s capital increase of €300 million from September 2019 may have already been exhausted.

According to the football and finance website, the board of directors will be called to called to approve the 2019/2020 financial statements on 11 September (the corporate calendar has been updated, ed.), Other interesting news on the company’s accounts emerged from the half-year report of Exor Juventus, in addition to the figure on the expected net loss of around €69 million .

In particular, the half-yearly report of the Agnelli / Elkann family holding shows how Juventus’ cash, which at 31 December 2019 was equal to €137 million, thanks to the liquidity raised with the €300 million capital increase, fell as at 30 June 2020 to only €6 million.

In the second half of the 2019/2020 financial year, characterized by the Covid-19 emergency, which negatively impacted the club’s revenues, Juventus therefore saw its cash fall by €131 million.

At the same time, gross financial debt, which at 31 December 2019 was €464 million, fell to €396 million at 30 June 2020, with a decline of €68 million. Part of the cash may have been used to reduce debt, while part may have been absorbed by current operations.

Dati in milioni di euro – Fonte: Exor

On this point, the Exor half-yearly report does not offer further details about Juve’s cash absorption in the period, although in the paragraph dedicated to the progress of Juventus, the Exor administrators give some indications, referring to the impact of the pandemic on the club’s accounts:

“It should be noted that the restrictive measures adopted by the various authorities, in addition to preventing public access to the museum and shops for several weeks (the latter remained closed until May 17, 2020) with a consequent decline in merchandising revenues, also has made it impossible for the public to attend the matches with a consequent reduction in match revenues and the pro quota reimbursement of 2019/2020 season tickets as well as tickets for matches already sold.

Furthermore, Juventus is exposed to risks deriving from requests for reduction of 2019/2020 fees for broadcasting rights and sponsorships and difficulties in concluding new commercial contracts, with negative effects on the financial position and results of the Juventus.

It is believed that the amounts allocated during the year for risks and the risk provisions set aside are adequate and correctly reflect the possible negative impact of such requests.

In these circumstances, to partially mitigate the economic and financial impact of the suspension of sporting activity, Juventus entered into an agreement with the players and the coach of the First Team which provided for a reduction in remuneration seasonal 2019/2020 of an amount equal to the monthly pay for March, April, May and June 2020. The economic and financial effect of this agreement amounts to a positive €90 million for the 2019/2020 financial year. Juventus, the players and the technical staff involved will try in good faith to negotiate an integration of the future remuneration based on how the sports competitions of the 2019/2020 season will be resumed and completed. ” – Exor half-year report.

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