The Juventus board of directors has approved the balance sheets for the first half of the 2020/2021 season, which are headlined by the €113.7M loss, more than double compared to last year’s result. The revenue has gone down from €322M to 258M, with a 20% dip. The deficit was covered by shareholders’ equity.
The club noted that the period has been heavily penalized by the COVID-19 pandemic and the restrictive measures it caused, affecting the sales of tickets and other licensed products, with a negative impact on the operating and net income.
The losses were generated by lower revenues from the transfer market (-€55M) and to effects directly linked to the pandemic (-€39M). They were partly offset by increased of TV money due to the different scheduled compared to other campaigns.
Operating costs, amortization and net provision were instead flat. The net financial debt amounts to €357.8M but decreased by €27.4 thanks to positive flow generated from operations and proceeds from previous transfer market deals (+€46M).
As for the future outlook, the financial year is expected to result in a loss. However, the directors have determined that there are no significant uncertainties with the reference to the use of the going concern assumption for Juventus, taking into consideration to the group’s capitalization (€125.5M) and the ability to meet its financial commitments through the liquidity obtained from loans or bank credit lines (512.4M total, 287M not utilized). It means that the business model is considered viable, however selling players to make money was openly mentioned as a possibility in the release.