Juve post €71.4m loss, despite wage cuts, saying there is more red ink to come

September 17 – A week after European Club Association chair and Juventus boss Andrea Agnelli warned of a two year €4 billion Covid cash crisis for clubs, his own team have announced a third year of losses.

Juventus posted a deficit of €71.4 million for the year ending 30 June 2020. Revenues dropped for the 2019/2020 season to €573.4 million, from €621.4 million the previous year.

The impact of the coronavirus pandemic on match day and merchandise income was balmed for having the severest impact on the figures.

Juventus did manage to reduce costs from €458.5 million to €414.1 million, but it was not enough to prevent a rise of €31.5 million in losses to €71.4 million.

In their financial statement the club said: “In order to partially mitigate the economic and financial impact of the suspension of sporting activities, the Company reached a wage cut agreement with the First Team players and manager for a reduction of their 2019/2020 season wages that equates to the monthly salaries of March, April, May and June 2020. The economic and financial effects of the agreement reached are positive for approximately €90 million on the 2019/2020 financial year.”

Last season, Juventus confirmed their status as serial Italian champions, winning a ninth consecutive domestic crown, but the sporting success has not cushioned the club from the impact of the coronavirus shutdown in March, which brought the Serie A and the global game to a grinding standstill.

The Italian champions also expect a bleak financial 2020/21 season, forecasting another loss despite the club having struck new sponsorship deals with coffee brand Lavazza and Hong Kong-based financial services group Raffles Family Office, adding to a large portfolio that includes Budweiser, Coca-Cola, 10Bet, Ganten, Konami and Linglong Tire.

“In evaluating the business outlook, uncertainties that are typical of football activities persist, deriving in particular from the First Team’s performances in the competitions it is involved in, additional transfers of players’ registration rights which may take place during the year, the evolution of revenues deriving from commercial activities, and the trend in the cost of players’ wages and technical staff costs, also taking into account the variable component of the agreed wages,” said the club’s financial statement.

“At the current state of play, the company expects to post a loss in 2020/2021.”

Contact the writer of this story, Samindra Kunti, at moc.l1710843166labto1710843166ofdlr1710843166owedi1710843166sni@o1710843166fni1710843166