Juventus, budget approved with 200 million loss amid criticism from small shareholders

The monstrous loss is attributed by the club to the club's non-participation in the Champions League (TV rights and Uefa ticket revenues were reduced to zero against an average of 90-95 million in the previous three years). In addition, there are 'non-recurring charges' of 35.9 million, deriving from the 9.8 million paid in the dispute with Cristiano Ronaldo, from provisions for the dismissal of former coach Massimiliano Allegri, and from the devaluation of players' rights. Shareholder Salvatore Cozzolino pointed out that the balance sheet shows that 'even if there had been the Champions League there would have been a loss of 70 million'. The balance sheet also entirely devalued the receivable from the European Super League, the Spanish company set up under Andrea Agnelli's previous management for the European Super League project.

The net financial debts declared in the balance sheet on 30 June were 242.8 million. Lower than the 339.9 million at June 2023 because there was a 200 million recapitalisation last season. But if you take into account the money collected with the increase, it is as if the debts had increased by almost 103 million. Operating revenues, excluding income from player rights management (34.2 million, including net capital gains of 22.5 million), decreased from 437 to 360.4 million.

The company emphasises that the reduction in the cost of players' wages and salaries continued for the fourth consecutive year, with a decrease of 36 million between amortisation and depreciation (down from 159.1 to 139.1 million) and players' salaries (down from 255.4 to 239 million). Consolidated shareholders' equity decreased to 40.2 million, from 42.1 million in June 2023 before the recapitalisation.

The company points out that the stadium, land, and buildings are budgeted at 167 million, but estimates a total market value of more than 350 million. Asked by a shareholder, Cfo Stefano Cerrato replied that the company has 'an appraisal from a few years ago that estimates the value of the stadium to be over 100 million more than the current balance sheet value. We are updating it'.

The club expects this year's net loss to be sharply reduced; it should be less than 25 million. The budget assumes, as in previous years, that the team will pass the first phase of the Champions League and qualify for the round of 16, a result that is not a foregone conclusion and must be achieved on the pitch. "As usual, the economic, asset and financial development of the current financial year _ says the budget _ will be influenced not only by the sports results but also by the second phase of the 2024-2025 Transfer Campaign."

Small shareholders, especially Salvatore Cozzolino and Marco Bava, criticised the board of directors' decision to award bonuses for the past financial year, despite a balance sheet loss of EUR -199.2m. In the financial year, CEO Scanavino received EUR 1.2 million gross, of which 400,000 was a bonus and 800,000 a fixed salary. During the year, Scanavino was also managing director of Gedi, Exor's publishing company (he recently became chairman). The highest salary, however, is Cristiano Giuntoli's, 'managing director football', 2.9 million, consisting of 2.5 million salary and 400 thousand bonus. President Ferrero received EUR 404,900, he has no bonus.

What were the merits of paying the bonus? 'The board of directors, after much thought, decided to pay the bonus. It had been a couple of years since bonuses had been paid to managers,' Ferrero told the shareholders, referring to the remuneration report for the explanation. This report says that the eligibility condition for the bonus was not met, because the operating loss (-€175.4m) was above the threshold (-€10m). However, 'the financial year was characterised by extraordinary events', in particular the non-participation in the Champions League. And the board of directors acknowledged that 'relevant projects have been completed by the management,' such as the 200 million recapitalisation and cost rationalisation. So the board of directors decided on a waiver and paid 'a one-off bonus'. The bonus was also paid to three executives with strategic responsibilities, for a total amount of EUR 591,300, in addition to their salary of EUR 3,306,900. Giuntoli is included among these three executives, so for the other two (the report does not name them) the total bonus is EUR 191,300, in addition to their remuneration of EUR 806,900. The shareholders' meeting approved the remuneration report and the new long-term incentive plan for executives based on free shares (performance shares) with over 99% of the votes.