Juventus Faces €81 Million Loss, Point Deduction, and Legal Challenges

 Juventus Faces €81 Million Loss, Point Deduction, and Legal Challenges

Juventus Faces €81 Million Loss(Image-Getty)

In the second half of its fiscal year ending in June, Italy's prominent soccer club, Juventus (JUVE.MI), reported a significant loss of 81 million euros ($87 million), as confirmed by its parent company, Exor (EXOR.AS), on Wednesday. This loss suggests a full-year deficit of approximately 110 million euros for the Serie A powerhouse.

As Italy's most successful soccer team, Juventus had already disclosed a net loss of 29.5 million euros for the six months ending on December 31, 2022, in a statement made in March.

Exor, the holding firm for the Agnelli family, which has been at the helm of the club for a century, maintains ownership of approximately 64% of the shares and commands 78% of the voting rights within Juventus.

The 2022-23 season proved to be a challenging one for the Turin-based club. Juventus was penalized with a 10-point deduction in Serie A due to financial irregularities and also faced a ban from European competitions for the current season imposed by UEFA.

The club is expected to officially unveil its full financial year results ending on June 30 later this month. In the previous fiscal year (2021-22), Juventus reported a record loss of nearly 240 million euros.

Juventus has incurred losses exceeding 600 million euros over the past five years, with its last net profit recorded back in the 2016-2017 season.

Given the additional loss in the last financial year and an impending debt of 180 million euros due in June next year, analysts and bankers suggest that Juventus may require fresh capital. However, they also note that the club's ongoing legal challenges could complicate any efforts to raise new funds.

Over the past four years, the club has already received approximately 700 million euros in capital from its shareholders, with the majority coming from Exor.

Despite the legal issues facing Juventus, Exor's CEO, John Elkann, asserted last year that the club did not require additional capital.

Juventus, its former Chairman Andrea Agnelli, and 11 others may face trial as Italian judges initiated a criminal case against them last year on allegations of false accounting. The club has consistently denied any wrongdoing and maintains that its accounting practices align with industry standards.