Juventus, one of Italy’s most prominent football clubs, recently announced that their net loss had widened to €95.1 million in the first half of their 2023-24 fiscal year. This significant increase in losses can be attributed to the club’s ban from lucrative European competition this season due to financial irregularities.
In addition to the widening net loss, Juventus also reported a substantial decline in revenue. Revenue fell by almost 26% to €173.3 million between July and December of the previous year. This decline in revenue has put further strain on the club’s financial situation.
To address their cash-strapped finances, Juventus has announced a €200 million capital increase. This increase is expected to be launched by the end of April and is a crucial step in stabilizing the club’s financial position. Exor, the investment arm for the Agnelli family, has already covered the proportion of the cash call matching its 64% stake and will act as a guarantor for the remaining portion.
Juventus’ financial struggles stem from an accounting scandal that surfaced in late 2022. This scandal was related to player trading and salary payments, leading to the club’s ban from participating in European competitions this season. As a result, Juventus has faced significant financial repercussions and continues to forecast further losses in the current fiscal year.
The club’s financial woes have been ongoing, with Juventus reporting a consolidated loss of €124 million to June 30, 2023. This has brought their cumulated losses to over €700 million in just six years. It is a stark contrast to the net profit the club posted back in 2016-2017.
Juventus’ financial struggles highlight the challenges that even top football clubs can face. The club’s ban from European competition, coupled with the fallout from the accounting scandal, has had a significant impact on their bottom line. As Juventus moves forward with their capital increase and aims to stabilize their finances, only time will tell if they can overcome these obstacles and return to financial stability.