Juventus released their financial statements for the year ending 2020, running at a loss of €71.4m, but saved €90m with player wage reductions during the lockdown.
This was expected to be a difficult year for the Bianconeri and not just due to the effects of the COVID-19 pandemic.
The club is running at a loss of €71.4m, “marking a negative change of €31.5m compared to the loss of €39.9m registered in the previous year.
Juventus released their financial statements for the year ending 2020, running at a loss of €71.4m, but saved €90m with player wage reductions during the lockdown.
This was expected to be a difficult year for the Bianconeri and not just due to the effects of the COVID-19 pandemic.
The club is running at a loss of €71.4m, “marking a negative change of €31.5m compared to the loss of €39.9m registered in the previous year.
“The loss in the year stems from lower operating revenues for €62.8m, higher expenses from players’ registration rights for €15.6m, higher amortisation, depreciation and write-downs on players’ registration rights for €25.8m, higher other amortisation and depreciation for €5.7m, mainly due to the first application of the accounting principle IFRS 16, and greater net financial charges of €2.4m.
“These changes were partially offset by lower players’ wages and technical staff costs €42.1m and non-registered personnel for €1.4m, higher income from players’ registration rights for €14.8m, lower costs for external services for €10.1m, lower taxes for €5m, lower purchases for products held for sale for €5.4m, lower net provisions for €1.7m and other net positive changes for €0.3m.”
Because of the share capital increase of €298m in January 2020, the debt situation is not as bad as it could’ve been.
“Net financial debt as at 30 June 2020 totalled €385.2m,” an improvement of €78.3m from June 2019.
The statement also clarifies that Juventus saved approximately €90m by agreeing with the players and coach to reduce their salary during the lockdown in March, April, May and June 2020.
Cancelling Blaise Matuidi’s contract a year early by mutual consent also “generates a positive net economic effect on the 2020/21 financial year of €11.2m.”