This article analyses Juventus finances in respect of the 2020/21 season.
Season review
Juventus entered the 2020/21 season with the hopes of a tenth Serie A in a row in what has been a dominant era for the Old Lady. Inter Milan spoiled the party as Juventus finished in 4th, narrowly securing a UEFA Champions League (UCL) spot. The club did still achieve silverware, winning both the Italian Super Cup and Coppa Italia. An exit at the UCL round of 16 stage was however underwhelming for the club.
Juventus finances were badly impacted by COVID-19 and a subdued transfer market as the club recorded its largest loss and one of the largest ever in Serie A of over €200m.
Juventus Finances – Revenue
Despite financial concerns, Juventus saw its revenue rise 9% to €474m. This was due to deferred revenue in respect of the 2019/20 season being recognised in 2020/21. Juventus has however estimated that €70m of revenue has been lost in 2021 due to COVID-19.
Matchday
Matchday revenue plummeted from €49m to €8m (84%) as the he majority of games were played behind closed doors. The return of fans in greater numbers (still restrictions) means that matchday revenue should recover slightly in 2022.
Broadcast
Broadcast revenue rose from €166m to €235m (41%). This was predominately the result of €63m of revenue from the 2019/20 Serie A season being recorded in the 2021 financial year. This is due to the end of the 2019/20 season falling into July and August, with Juventus’ 2020 financial year ending in June. UCL revenue was €88m of this total broadcast revenue.
Serie A has agreed a new broadcast cycle from 2021/22 on reduced terms which will adversely impact the broadcast revenue of Juventus.
Commercial
Commercial revenue increased from €186m to €195m (5%) as the club benefitted from its increased Jeep deal. Looking ahead, Juventus has agreed its first ever sleeve sponsor with Bitget which should contribute to a rise in commercial revenue in 2022.
Juventus Finances – Revenue summary
While Juventus’ revenue may look like it increased, the increase is driven by the €63m of deferred broadcast revenue. If adjusted, Juventus’ revenue fell significantly with 2020 revenue of c.€464m versus 2021 revenue of c.€375m. The Old Lady will be hoping that as fans return in greater numbers, revenue will return towards the €500m mark.
Juventus Finances – Operating costs
Operating costs increased from €416m to €443m (7%), growing at a similar level as revenue in the year.
Wages
Juventus saw its wage bill grow from €284m to €323m (12%) as the club invested further in its playing squad. The wages to revenue ratio rose from 71% to 74% but remains around the 70% recommended limit advised by UEFA. With Cristiano Ronaldo departing ahead of the 2021/22 season, this should lead to significant wage bill savings.
Other costs
Other operating costs fell from €131m to €119m (9%), predominately from costs savings due to games being behind closed doors.
Juventus Finances – Operating costs summary
The current revenue profile of Juventus is absorbed by its cost base leaving little room for profitability. With Juventus at the start of a rebuild stage after a trophy-laden era, the club may look to reduce its cost base while remaining competitive, as seen by the sale of Ronaldo.
Juventus Finances – Transfers
The Turin giants had a minor net transfer spend in what was a subdued and cautious transfer market. In came Arthur (€72m), Rovella (€23m), Morata (Loan – €20m), Mandragora (€11m), Chiesa (Loan – €10m), McKennie (Loan – €5m) and Gori (€3m) for a combined €143m.
Departing Juventus were Pjanic (€60m), Can (€25m), Portanova (€10m), Muratore (€7m), Romero (Loan – €2.3m), Rugani (Two loans – €1.1m and €0.8m), Stoppa (€1m), Costa (€0.3m) and Gori (Loan – €0.1m) for a combined €108m.
This resulted in a net transfer spend of €35m.
Amortisation
Juventus saw its player amortisation charges rise from €194m to €197m (2%). Spending has been significantly lower in 2021/22 and therefore a decline is likely.
Profit on player sales
Profit on player sales was significantly lower in 2021, with Juventus generating €6m of profit on player sales. This compares to €141m in 2020. This was the main reason for the significant increase in losses (see profitability section).
The main reason for this is the Pjanic and Can transfer sales being accounted for in the 2020 financial year. Player sales have so far been subdued which may mean a similar level of profit is recorded in 2022.
Juventus is a net transfer creditor, owing more in transfer fees than it owed by other clubs. The club owe €265m in transfer fees while being owed €142m, a net €123m creditor position. Of this amount a net €45m is due in the 2021/22 season. This appears to have contributed to limited 2021/22 transfer spending.
The main creditor balances are to FC Barcelona (€66m), Genoa (€31m) and Ajax (€30m). The main debtor balances are owed by Genoa (€26m), Borussia Dortmund (€20m) and Manchester City (€15m).
Juventus Finances – Transfers summary
A subdued transfer market has heavily impacted the financial health of Juventus, with profit on player sales €135m lower than in 2020. This was the major driver behind a more negative financial picture at the club, notwithstanding the impact of the pandemic.
Juventus Finances – Profitability
Juventus recorded a loss of over €200m in 2021 as the club felt the fall impact of reduced player trading and minimal matchday revenue.
Operating profit / loss before player trading
Before player trading, Juventus recorded an operating loss of €6m, an improvement from the €15m loss in 2020. This was driven by the €63m of deferred 2020 broadcast revenue recognised in 2021. With revenue in 2022 likely to fall, losses are likely to rise unless significant cost cutting measures are actioned.
Operating profit / loss after player trading
After player trading, losses rose from €67m to €197m (194%) highlighting player trading as the main driver of its significant losses. With player trading also limited in 2021/22 to date, it is unlikely this improves significantly in 2022.
Profit / loss before tax
Net finance costs of €11m resulted in Juventus recording a loss before tax of €208m (2020: €82m).
Juventus Finances – Profitability summary
The Italian giants are suffering from significant losses as it navigates through the pandemic. The club will be hoping for improved sporting performance, particularly in the UCL to help reduce losses. Alternatively, Juventus may explore sales in the winter transfer window to improves its financial picture or risk significant losses again.
Juventus Finances – Assets / Liabilities
The stark losses of Juventus meant that the net asset position of the club reduced heavily as they look for ways to fund its growing losses.
Cash flow
Juventus’ cash reserves rose from €6m to €11m. Cash flows from operations of €42m were used to absorb outflows from player transfers (€7m), capital expenditure (€6m) and financing (€17m).
Debt
Following the outbreak of COVID-19 in 2020, Juventus saw a €298m capital injection which was meant to fund its losses resulting from the pandemic. Minimal new debt financing has been taken on such that debt levels remain stable at €400m.
However, the club is due to raise another €400m of capital to steady the financial ship as it deals with its financial challenges.
Net debt
Net debt now stands at €389m.
Juventus Finances – Final Remarks
Juventus has been very vocal on the financial challenges the club is facing. The club has estimated that it has lost over €300m in revenue across the 2020 to 2022 seasons. This covers the losses incurred in both 2020 and 2021, highlighting the financial damage done. This has unfortunately come at a time where its dominant era in Italy appears at an end, Juventus will however regroup and look to return stronger both financially and sportingly in the near future.
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