Football Finance

Where’s the biggest challenge for Juve?

juveJUVENTUS will probably win their sixth consecutive Serie A title in 2016-17, which will be the first time that any Italian club has won half a dozen scudetti in succession. Whether this latest title is won more easily than in the past five years or not, and the signs are that Juve may not be quite as invincible as they have been, the real competition for the Turin giants may not be at home but abroad.

Juventus represent – at least at the moment – Italy’s only real chance of developing a modern European powerhouse, although one day, the Milan giants may emerge from their nuclear winters to return to some sort of glory. This season, AC Milan have started well and both the Rossoneri and Inter have beaten Juventus at the San Siro.

On their own ground, Juventus are as formidable as ever and they are currently on a 24-game winning streak at home.  And away from Serie A, which they are leading by four points, they are on the brink of another good run in the UEFA Champions League. They play their last group stage game against Dinamo Zagreb on December 7.

But is that enough to make Juve truly competitive on the European and global stages? In their latest report, Football Benchmark looks at Juventus’ current financial and sporting position and their renaissance since the Calciopoli scandal of 2006.

At the end of 2010-11, Juventus recorded operating revenues of EUR 154m and a net loss of EUR 96m. In 2015-16, operating revenues were EUR 341m and the club made a net profit of EUR 4m, for the second successive season.

Key to the club’s success has been the new stadium, which broke with the Italian tradition of municipal grounds owned by the local authority. This has given Juve a distinct advantage in domestic football both on and off the field of play. With an impressive 78% win rate at home, a visit to Turin is daunting for most Serie A clubs. On the financial side, matchday revenues have grown from EUR 11.5m in 2010-11 to EUR 44.1m in 2015-16. Average attendances have risen from 23,000 to 39,000 in that period. Commercial revenues have also climbed impressively, although 57% of all revenues are derived from broadcasting, an area where Juventus benefit from their involvement in the Champions League, their crowd potential and their performance over several seasons.

Juventus string of titles, commercial income and appearance in the UEFA Champions League final in 2015 meant they could invest significantly in their squad, especially after selling Paul Pogba to Manchester United for more than EUR 100m. In 2016-17 the club pulled off the landmark EUR 90m acquisition of Gonzalo Higuain from Napoli, and signed Miralem Pjanić from Roma and Marko Pjaca from Dinamo Zagreb for EUR 32m and EUR 23m respectively. Higuain and Pjanić, while strengthening the Juve squad, also weakened two of the club’s rivals – which appears to be a similar strategy to the one adopted by Bayern Munich in Germany.

Domestically, Juventus do not currently have a serious challenger for their title, and they remain the most popular club in Italy. Matchday revenues, however, may be restricted by their relatively small stadium – certainly compared to the San Siro (80,000) and Rome’s Stadio Olimpico (71,000), although the club enjoyed a 96% saturation rate at its home ground in 2015-16.

The club’s enterprise value, as listed in KPMG’s European Elite report in May 2016, is around a third of the total of clubs like Real Madrid, Manchester United and Barcelona, all of which have far bigger stadiums. The club will be boosted by the opening of the J-Village in 2017, a project that will include restaurants, a concept store, residential properties and social and commercial areas, although some analysts are tempering expectations around the potential of the site.

How Juventus shape up
Deloitte Money League 2016: 10th
Revenues: EUR 324m (2015-16 341m)
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KPMG European Elite: 9th
Enterprise value: EUR 983m
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Forbes: 9th
Team value: EUR 1.150bn
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Brand Finance top football brands: 11th
2016 Brand Value: EUR 264m
Brand Rating: AAA

Five-year record

  Pos P W D L F A Pts UCL Att Revenues
2015-16 1 38 29 4 5 75 20 91 R/16 38,662 341.5m
2014-15 1 38 26 9 3 72 24 87 Final 38,553 324.7m
2013-14 1 38 33 3 2 80 23 102 Group 36,564 279.3m
2012-13 1 38 27 6 5 71 24 87 QF 35,973 272.4m
2011-12 1 38 23 15 0 68 20 84 n/a 35,755 195.4m

Juventus’ next stage will be to further build on their Champions League presence and continue to broaden the Juve footprint. According to the club’s annual report, they have 12 academies worldwide, in Europe, Africa, the Middle East, Asia and South America – evidence that we live in a football age where it is simply not enough to stand astride your home territory.

To see Football Benchmark’s report, click here

Categories: Football Finance

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