Juventus have suffered a Serie A record of €254 million ($246.1m) in losses for the 2021/22 season, find out the reason behind the heavy losses, and what are the club’s new objectives along with their financial crisis problems and statements
Max Allegri’s team have currently won just two of their nine matches in the 2022/23. However, the club’s financial statement published earlier this week has overshadowed even that alarming run of form.
Juventus Financial Crisis, Problems And Losses Statements Situation Explained
In September, Juventus published their consolidated financial statement for 2021/22, registering losses of €254 million which according to forces is the largest ever loss recorded by a Serie A team.
— Mina Rzouki (@Minarzouki) November 28, 2022
Even before the likely revision in their accounts, #Juventus had posted losses of more than half a billion Euros over the last 3 years. pic.twitter.com/cizeA32Nfa
— Swiss Ramble (@SwissRamble) November 28, 2022
‼️ Juventus have incurred record-breaking losses (£220m), their entire board including Andrea Agnelli have resigned. This is the best time for #mufc to free Dusan Vlahovic from Turin for cheap. 👀
— centredevils. (@centredevils) November 29, 2022
A recent financial report made available on the official Juventus website states that Juventus have incurred losses of €254 million ($246.1m) in the 2021/22 season.
This is the largest ever deficit recorded by any Serie A team ever since the league’s inception. The club’s previous record was €209.9 million ($246.2 million) while Inter’s league loss of €245.6m ($283m) was the league record to beat.
Five Consecutive Years Of Losses
Juventus have suffered five consecutive years of losses, mostly owing to the Covid-19 pandemic and the lockdown restrictions that followed.
The report states:
For a correct interpretation of the figures, it should first be noted that the 2021/2022 financial year was once again significantly penalised – as were all companies in the sector and many other industries – by the persisting of the health emergency linked to the Covid-19 pandemic and the consequent restrictive measures imposed by the Authorities
The report discussed how the pandemic largely affected the club’s finances both directly and indirectly.
Reasons For The Heavy Losses
The report cited the following main reasons that lead to the Bianconeri side incurring heavy losses:
- Stadium restrictions, which impacted match-day revenues during the 2021/22 campaign
- Serie A’s strict attendance limits during the peak Omnicron outbreak which affected gate receipts and merchandise sales
- The Club’s knock out from the round of 16 of the UEFA Champions League by Villarreal, reduced the number of fixtures giving a negative impact on television rights and media revenue
All of these factors as well as some other reasons have brought a combined recorded loss of around €534 million ($517.45m) over the past three years for Juventus.
Strong Financial Backing
Despite the alarming losses, Juventus have been fortunate to have had a strong financial backing from the board of directors. According to La Gazzetta dello Sport, the board have made a €300 million ($290.7m) recapitalisation during the end of 2019.
This was followed by another cash injection in December last year to restore club assets, bringing the total amount of positive cash flow to around €400 million ($387.6m). As of June 2022, the club assets stand at €169 million ($163.76m).
Moreover, the club’s careful management has helped them reduce debts from €464 million ($449.62m) back in 2019 to just around €153 million ($148.26m) net as of June 2022.
New Objectives
The report further states a new three-year plan approved by the Juventus board, with the following objectives:
- Maintaining sports competitiveness
- Medium/long-term economic and financial balance
- Excellence in operations, with an increase in Juventus brand visibility in international markets
- Reinforced integration of the ESG topics in the business model
- Taking an active role in the reform and in the sustainable and inclusive evolution process of the sport industry
2022/2023 A Hopeful Season
Juventus finally stated that the club’s financial status will hopefully improve in the 2022/2023 season despite the presence of various unfavourable factors. The club expects a better financial year than the 2021/2022 season despite the effects of the Covid-19 pandemic still lingering.
The club also mentioned how its UEFA Champions League performances and 2022/2023 January transfer activities will strongly influence its financial standings.
As such, the club admission about on-field performances having a direct influence on finances puts Max Allegri’s position in contention. The club manager’s future at the club is currently under a lot of discussion. And it looks like Juventus’ performances in the remaining UEFA Champions League matches will have a profound effect.
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