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Juventus record highest financial loss in Serie A history

By James Cormack

NAPLES, ITALY - SEPTEMBER 11: Andrea Agnelli president of Juventus prior to the Serie A match between SSC Napoli and Juventus at Stadio Diego Armando Maradona on September 11, 2021 in Naples, Italy. (Photo by Daniele Badolato - Juventus FC/Getty Images)
NAPLES, ITALY - SEPTEMBER 11: Andrea Agnelli president of Juventus prior to the Serie A match between SSC Napoli and Juventus at Stadio Diego Armando Maradona on September 11, 2021 in Naples, Italy. (Photo by Daniele Badolato - Juventus FC/Getty Images) /
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Juventus released their consolidated financial statement for the 2020/21 fiscal year last Friday, and it doesn’t make for pretty reading.

Clubs across Italy have been hard hit financially by the coronavirus pandemic and the mighty Juventus are no exception. With fans unable to return to stadia across the country until the start of the 2021/22 season at a limited capacity, clubs have seen a major revenue stream in ticket sales collapse.

Thus, Juventus (via Forbes) reported a huge loss of €209.9m for 2020/21. The figure is more than double from the previous year and is the highest financial loss ever recorded by a Serie A club. Inter Milan’s €206m (2006/07) and AS Roma’s €204m (2019/20) losses have been topped by the Bianconeri.

The Old Lady have now recorded losses for four consecutive seasons.

Solution?

With fans slowly returning to the Allianz Stadium, Juventus’ matchday revenue is set to increase in 2021/22. The exit of Cristiano Ronaldo has also lifted a huge financial burden.

Nevertheless, to mitigate against their debt, the club’s hierarchy recently approved a capital increase of up to €400 million, on which shareholders will have to vote during a meeting scheduled for October 29.

“The capital increase… will help strengthen the company’s equity and balance funding resources to help achieve the strategic targets of the 2019-24 development plan which have been confirmed,” Juventus said in a statement (via Reuters).

The club wrote that it expects its debt to start recovering beginning in the 2022/23 financial year.

Tight finances

Manuel Locatelli eventually joined Juventus in the summer. (Photo by David Lidstrom/Getty Images)
Manuel Locatelli eventually joined Juventus in the summer. (Photo by David Lidstrom/Getty Images) /

The recent revelation explains the club’s rather pedantic work in the recent summer transfer window.

The club spent an age to negotiate a financially amicable deal for priority target Manuel Locatelli, with the club spending a total of £31m – including the permanent purchase of Weston McKennie. The likes of Locatelli and Moise Kean joined the club on initial loan deals, with the payments involved in the obligations to purchase spread over several years.

Juventus have also been hesitant to agree to Paulo Dybala’s demands in contract negotiations. The Argentine’s entourage are hopeful of La Joya becoming the joint-highest earner at the club, but Juve have so far been reluctant to accept their terms.

European Super League

Juventus also announced their continued support for the creation of a European Super League, which they view as a solution to the financial challenges currently faced by many of Europe’s elite.

The Bianconeri, alongside Spanish giants Real Madrid and Barcelona, remain part of the competition despite its collapse and Juve said they’re still confident in the “legitimacy” of the project.

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