Juventus explained the reasons for a loss of €113.7m for the first six months of 2020-21, revealing they could sell players to make up for it.
Juventus' Board of Directors at Juventus approved the half-year financial report for December 31, 2020, registering a loss of €113.7m.
Juventus explained the reasons for a loss of €113.7m for the first six months of 2020-21, revealing they could sell players to make up for it.
Juventus' Board of Directors at Juventus approved the half-year financial report for December 31, 2020, registering a loss of €113.7m.
"In detail, the higher loss in the first half of the year is essentially attributable to lower revenues of € 64 million, related to lower revenues from players' registration rights (€ 55 million) and the effects directly attributable to the pandemic, on tickets sales and sales of products, licences and similar (total € 39 million)," the club's statement reads,
"These negative effects were partly offset by higher revenues from radio and television rights (€ 27 million, related to the higher number of championship matches played in the half-year in question). In terms of revenues, note the positive trend – given the difficult context – of revenues from sponsorships and advertising (slightly higher than the previous year), as well as the increase in revenues from e-commerce (up by 60%), which partially offset the inevitable decline in revenues from physical retail stores.
"Operating costs, amortisation/depreciation and net provisions were flat on the whole, showing moderate changes in certain items (registered personnel and non-registered personnel costs – which were fully paid on time – as well as expenses for players' registration rights and health protection were up; external services and other minor costs decreased).
"During the first half of the 2020/2021 financial year, the protraction of the Covid-19 pandemic generated a significant negative impact on revenues (mainly from ticket sales and product sales), which can be quantified in about € 50 million; conversely, the impact on costs was not significant, since some savings related to the lack of matches were partly offset by costs related to the pandemic (mainly health safeguards and protective devices)."
The Old Lady confirm they could “could dispose of players' registration rights”, namely, sell some of their players in the future, to make up for the losses.
"Despite the difficult general economic and financial context, the directors have determined that there are no significant uncertainties with reference to the use of the going concern assumption. In developing this conclusion, it has been taken into consideration both the Group's capitalisation (at December 31 2020 the Group shareholders' equity amounted to € 125.5 million) and the ability to meet its financial commitments through the liquidity obtained from medium-term loans and/or using available bank credit facilities. In addition, without prejudice to the continuation of business activities – despite a context influenced by reduced liquidity in the system as a result of the protracted crisis – Juventus could dispose of players' registration rights."