Juventus Reports €200 Million Loss, But Excludes New Capital Increase

Juventus Financial Summary for 2023-2024

The Juventus football club has reported an alarming financial deficit of €200 million for the annual budget of 2023-2024.
This significant loss is primarily attributed to the team’s absence from the prestigious Champions League, following a ban resulting from penalties related to capital gains.

Since June 30, 2023, the financial shortfall has widened by €75.5 million, exacerbated by declines in sponsorship revenues and product sales tied to the Champions League exclusion.
Additional losses stemmed from the termination of goalkeeper Wojciech Szczesny’s contract, incurring a severance payment of €4 million, alongside the sale of Federico Chiesa to Liverpool, which further impacted the club’s finances negatively by €3 million.

Company Financial Situation

Despite these sobering figures, the Board of Directors has ruled out another capital increase following the one completed in April.
The approved budget outlines a loss of €199.2 million, up from €123.7 million in June 2023.
Shareholders will convene on November 7 to formally approve this budget.

Despite the daunting deficits, the Board remains optimistic about returning to break-even status in the 2024-25 financial year, crediting cost rationalization strategies and a potential return to the Champions League.

During the past year, Juventus recorded a revenue figure of €394.56 million, a stark drop from €507.65 million the previous year.
This 22.3% decline is largely due to lost income from European competitions, which contributed a staggering 60% to this downturn.

Cost Management and Financial Health

Operational restructuring efforts have managed to reduce net depreciation and provisions by €37 million, partially offsetting revenue reductions.
Moreover, the club’s net financial debt decreased from €339.3 million in 2022-2023 to €242.8 million, a shift assisted by a positive cash flow resulting from a €198 million capital increase and €77 million from the outright sale of receivables from overseas football clubs.

As of June 30, Juventus maintains unused bank credit lines totaling €479.8 million, with €179.9 million currently unutilized.
In April, the club executed a €200 million capital increase, offering new shares at €1.582 each, following a share consolidation ratio of 1:10.

Market Responses and Analyst Recommendations

Following the financial report, Juventus shares experienced a surge of 3.72% in Piazza Affari, nearing a market capitalization of approximately €1 billion.
However, Kepler Cheuvreux downgraded its recommendation to ‘reduce,’ citing a target price of €2.25, below the current value of €2.55.

Investor enthusiasm is also growing in anticipation of closing a new jersey sponsorship deal to replace Jeep, which is expected to generate between €20 and €25 million per season.