Juventus financial performance – the bubble starts to deflate

WHEN a club of Juventus’ size has financial issues, then we should all be concerned about the future of top level professional football. The dominant force in Italy, regular Champions League participants, the most popular and visible club in their home country and a team of big-name players. How does a club like Juventus get into such a mess?

Covid-19 has played its part. Predictably, Juve’s revenues were down in the financial year ended June 30 2020, but the most worrying sign for fans of the club is that they have been releasing players to ease the burden on their balance sheet. Gonzalo Higuain and Blaise Matuidi had their contracts terminated and the club is desperate to let others go, such as Sami Khedira, who has refused to leave. Little wonder the club’s president, Andrea Agnelli, in his role at the European Club Association, told the media major European clubs would lose around € 3.6 billion in revenues due to the crisis.

Juventus revised their year-end figures after letting Higuain and Matuidi go for nothing. The departure of Higuain to Inter Miami had a negative impact on the financial result to the tune of € 19 million. Four years ago, Juve paid € 90 million for the Argentinian striker.

Juventus made a record loss for the year of € 89.7 million, their third consecutive annual deficit and 125% higher than their loss of € 39.9 in 2018-19. Their operating loss was € 67.1 million, more than three times higher than a year earlier. The club has effectively used shareholder capital to cover its losses.

Juve’s total revenues, including € 172 million from players’ registration rights, amounted to € 573.4 million, approximately € 48 million (8%) lower than 2018-19.

Understandably, given the pandemic, Juve’s matchday income declined by more than € 21 million to € 49.2 million. Broadcasting saw the biggest hit, though, falling from € 206.6 million to € 166.4 million. Commercial income was more or less unchanged at € 186 million.

The media has been talking about Juve’s problems for some time. Tuttosport, for example, said they were desperately keen to relieve pressure on the payroll while it was reported that Italian investment bank Banca IMI had forecast a loss as high as US$ 122 million.  The club has already reduced its wage bill, taking it from € 327.7 million to € 284. 3 million – and that is with Cristiano Ronaldo still on their books. Even after the reduction, the wage bill still represents 70% of income – a very high and unsustainable figure. Other media reports suggested the club was keen to sell Ronaldo to the Premier League for € 70 million to cash-in while his value was still high and not eroded by the crisis. Ronaldo, who waived four months’ wages earlier this year, earns € 570,000 per week at Juventus (€ 30 million per year).

In the circumstances, a major concern has to be the club’s level of indebtedness. Net financial debt, while 17% lower than 12 months earlier, is still high at € 385.2 million.

Juventus won their ninth consecutive scudetto in 2020 but they were pushed all the way. They went out of the UEFA Champions League in the round of 16, losing to Lyon. At the end of 2019-20, they disposed of manager Maurizio Sarri, installing Andrea Pirlo in his place. Juve have longed to win the Champions League and reached the final in 2015 and 2017, but they seem further away from success than at any point in the past decade. Their financial situation may not be existential, but it may affect their ability to be competitive in European competition.

Despite the current financial situation, Juventus have signed a number of players for 2020-21, including Arthur from Barcelona (a deal which sent Pjanic to Spain) and have taken Alvaro Morata on loan from Atlético Madrid. But their star player, Cristiano Ronaldo, is 35 and their coach has no track record as a manager.

More positively, Juventus are still trying to expand their global footprint and have struck a partnership with the Hong Kong-based Raffles Family Office in order to grow their presence in Asia. Juventus opened a marketing office in Asia 2019.

For some years, football experts have been warning of a bubble-like situation that could burst at any time. The covid-19 pandemic may have created that scenario, in which case, Juventus may be just one of many clubs to feel challenged by the crisis. It would certainly be no surprise if the club’s rivals in Italy reported similar problems in the months ahead.


Photo: PA

Pirlo for Sarri – proving even champions get axed

IT IS becoming the fashion these days – the removal of a coach because he no longer fits the bill, regardless of how successful he is. In the case of Maurizio Sarri, an inevitable event that was foretold weeks ago, it confirms Serie A has been a one-horse race for so long that even winning the title by a single point is considered relative failure.

Juve “only” won the Scudetto, they fell short in the other competitions. For the second successive season, Sarri finishes a one year project with a trophy and Juve let a championship-winning manager go.

It was so predictable. Champions League exit would signal the end of Sarri’s year in northern Italy, especially when Andrea Pirlo was unveiled as the club’s new under-23 coach. It is hard not to assume that Pirlo for Sarri was the game in play, Juve appointing one of their own, the club’s attempt at making their former playmaker into Pep of Turin. It’s a nice idea but can a club the size of Juve afford to be managed by a relative rookie?


What are Juventus hoping to achieve with Pirlo? In short, they want the Champions League – badly. It is a quarter of a century since they won it and they have been desperately hanging onto the shirt-tails of Real, Barca and Bayern for the past decade. Making that extra push is not about money – Juventus have enough of that, but the lack of competitiveness in Serie A does not prepare them well for combat against the continent’s best. Juve, off the pitch, have shown they are innovative, with their new logo and marketing acumen, but they need a vision and a style to go with their glossy corporate identity. Sarri was never going to be that man and surely they knew that, just as he wasn’t Chelsea’s man.

They have Cristiano Ronaldo, surely that’s all the style they need? True, they rely on CR7 a great deal, but Juve cannot pin their hopes on a player of his vintage –  not on his own. As well as accelerating stories on Sarri’s exit, the two-legged defeat to Lyon, albeit on away goals, fuelled speculative reports about Ronaldo’s future, with PSG one of the parties interested in the veteran striker. It is, however, entirely possible PSG have moved beyond taking on “names” to further their cause.

Juve may be the top club in Italy, but their aspirations of European glory are identical to half a dozen clubs with greater resources. Since reaching the 2017 final they have fallen at the quarter final stage twice and the last 16 in 2019-20.

The club has signed some accomplished players in the last few years, but with the exception of Matthijs De Ligt, they are a club that attracts big names but not in the crucial stage of their career. This has proved enough to dominate Italy but it may not be the case going into 2020-21.

Whereas they had things their own way since 2012, comfortably maintaining a position of superiority over traditional and new rivals, Juve in 2020 have genuine challengers to their throne, which doubtless added to the anxiety around Sarri. But what can Pirlo realistically do with the current squad that Sarri could not?


Being realistic, Juventus must have taken their foot off the pedal in the closing games of the Serie A campaign. They lost four of their 12 post-lockdown games, but three came after the title had been clinched. That allowed Inter to paint a slightly misleading picture on the final table? Juve’s form had been patchy before they won the Scudetto, which started to put pressure on the hapless Sarri. In the final analysis, Juve won 20 points from 12 games when Serie A resumed, while AC Milan racked up 30, Atalanta 29 and Inter 28.

Inter would have won the title with just one draw from their two clashes with Juventus. It is hard to judge if Juve’s poor closing would have occurred if the race was still wide open. Certainly, Juve were not the team of old but that should be no surprise given the average age of the squad. The ageing process is no surprise, they’ve been talking about it for a couple of years now.

Inter Milan lost fewer games than anyone else – four – and conceded just 36 goals. They spent heavily and will be fancied to run Juve even closer next season. But Conte did a very good impression of “Mr Angry” at times and was very critical of the club’s management- is he happy at the San Siro? He’s been here before but Inter will surely want to keep him – they could be on the brink of something special.

The team that won all the plaudits and continued to provide some romance for the Italian game is Atalanta from Bergamo, the city in the eye of the Covid-19 storm. Third for the second season running and in the last eight of the UEFA Champions League, along with a growing reputation for attacking football that yielded no less than 98 goals.  Players like Hans Hateboer, Robin Gosens, Josip Iličić and Papu Gómez all impressed for Atalanta, whose budget is little more than 10% of the Juve wage bill.

Lazio were in tremendous form up to lockdown, 21 games, 17 wins, but after the break, they fell apart, losing six of 12 despite having Serie A’s capocannoniere, Ciro Immobile in their ranks.

If Inter showed they are in positive territory, AC Milan had an excellent post-lockdown run, winning nine and drawing three of 12 games. This was in contrast to their first 12 games where they lost seven. Zlatan Imbrahimovic joined the club and scored 10 goals in 18 games and Milan scored impressive wins against Juve and Lazio. It was enough to claim sixth place in Serie A, but not enough to return to the Champions League.

Juventus may feel as though they are under threat in 2020-21, but a more competitive Serie A will be good for Italian football. Pirlo will have a tough baptism next season, but will Inter still have Conte, can Milan maintain their improvement and will Atalanta continue their unlikely story? Their success in the Champions League may fund another campaign of over-performance. Meanwhile, Sarri is in the market again – he may be thinking that a career in Italian banking was far easier than an impatient and brutal football world.