#Juventus 2018/19 accounts cover a season when they won the league (for the eighth year in a row), but were eliminated in the Champions League at the quarter-final stage by Ajax. Head coach Max Allegri left at the end of the season. Some thoughts in the following thread.
#Juventus pre-tax loss widened from €10m to €27m (€40m after tax), despite revenue growing €83m (20%) from €411m to €494m & profit from player sales rising €33m (35%) to €127m, due to significant cost growth of €130m. Revenue (club definition) up €117m to record €621m. 
All #Juventus revenue streams increased. Commercial income rose €41m (28%) to €187m (largely the Ronaldo factor); match day was up €14m (25%) to €71m; broadcasting was €6m (3%) higher at €207m; and player loans shot up €22m to €30m.
On the other hand, #Juventus saw large cost growth: wages increased €69m (27%) from €259m to €328m, player amortisation grew €42m (39%) from €107m to €149m, while other expenses were up €6m to €130m. Also cost the club €15m to pay-off Allegri and his staff.
#Juventus €27m loss before tax is the third worst in Italy, only surpassed by Inter €40m and Milan’s awful €143m. Just over half the clubs in Serie A lose money. The most profitable are Atalanta €35m, Sampdoria €19m & Sassuolo €13m.
The situation is much the same after tax with the largest losses reported by Italy’s traditional “big four”: Milan £146m, Inter €48m, #Juventus €40m and Roma €24m. Highest profits were made by Atalanta €24m, Sampdoria €12m & Sassuolo €8m. Napoli had a €6m loss in 2017/18.
#Juventus profit on player sales rose from €94m to €127m, the 2nd highest in Italy, only behind Roma €129m. Included Spinazzola to Roma €26m, Caldara to Milan €22m, Audero to Sampdoria €19m, Mandragora to Udinese €14m, Sturaro to Genoa €14m & Orsolini to Bologna €11m.
So after four years of profits, #Juventus have now reported losses for two years in a row. However, the club is no stranger to losses, having racked up €151m in the three years between 2011 and 2013. They currently forecast that 2019/20 will end up in another loss.
#Juventus EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), considered as a proxy for cash operating profit, as it excludes once-off items like player sales and exceptional items, increased from €28m to €36m, but is a long way below the 2015 peak of €66m.
Excluding player sales, #Juventus revenue rose €83m (20%) from €411m to €494m in 2018/19. This means that revenue has grown by €123m (36%) in three years, mainly on the commercial side €84m, though also growth in match day €27m, player loans €20m and broadcasting €12m.
#Juventus revenue of €494m is by some distance the highest in Italy, around €120m more than the closest challenger, Inter €377m, followed by Roma €236m, Milan €228m, Napoli €185m (2017/18) and Lazio €124m. All other clubs in Serie A have revenue less than €100m.
#Juventus have significantly increased the gap against all other Italian clubs. Since 2012 they have grown revenue by over a quarter of a billion (using the Deloitte Money League definition), while the next highest increase is Inter €173m. Milan’s revenue has actually reduced.
#Juventus broadcasting revenue rose €6m (3%) to €207m, as €17m increase in UEFA money to €95m offset €7m decrease in domestic TV rights to €110m. This is by far the highest TV income in Italy, well ahead of Roma €145m and Inter €139m.
Decrease in #Juventus domestic TV revenue is due to a changed distribution mechanism: 50% equal share; 30% performance (15% last season, 10% last 5 years, 5% historical); and 20% supporters. 2018/19 deal is higher, but less favourable to Juve with equal share up from 40%.
It is imperative that #Juventus do well in the Champions League to boost their broadcasting income, as the TV rights in Serie A are relatively low. Indeed, in 2019/20 there are big increases in England, Spain and France, while Italy is unchanged.
Based on my estimate, #Juventus earned €91m from the Champions League after going out in the quarter-finals, much higher than the prior season’s €80m, due to the new 2018/19 deal and distribution method. Other Italian clubs: Roma €55m, Napoli €47m and Inter €46m.
Champions League revenue increased by 54% in 2018/19. There is also a new UEFA coefficient payment (based on performances over 10 years), where #Juventus has the 6th highest ranking of clubs competing this season, guaranteeing them €30m (Inter €18m, Napoli €13m & Roma €12m).
The Champions League is extremely important for #Juventus, who have earned an impressive €447m from it in last 5 seasons. Not only is this much higher than other Italian clubs (Roma €282m, Napoli €185m, Inter €67m), but the most in Europe (next highest Real Madrid €383m).
#Juventus match day income rose €14m (25%) from €56m to €71m, despite staging 3 fewer home games in the Coppa Italia, as ticket prices were increased by 30% following Ronaldo’s acquisition. By far the highest in Italy, ahead of Inter €45m, Milan €34m and Roma €34m.
However, #Juventus average attendance of 39,193 is only the third highest in Italy, behind Inter 56,639 and Milan 54,660, though the 41,500 capacity at the Juventus Stadium is obviously much lower. Despite the growth, income is still only around half of Real Madrid & Barcelona.
#Juventus commercial income rose €41m (28%) to €187m, comprising sponsorship & advertising €109m, merchandising €34m & other €44m (including museum & stadium tours). The highest in Italy, just ahead of Inter €183m, then a big gap to Milan €76m, Roma €55m & Napoli €45m.
Much of the growth is linked to the arrival of Ronaldo. Club president Andrea Agnelli said, “He brings us worldwide profile”. Resulted in main sponsorship deals more than doubling from 2019/20: Adidas from €23m to €51m (and paid €15m bonus in 18/19), Jeep from €17m to €42m.
The increases in #Juventus sponsorship deals are necessary if they want to financially compete with the leading clubs in Spain, England, Germany and France, as their commercial income is much higher, e.g. five clubs were well above €300m in the 2017/18 Money League.
#Juventus player loans income shot up from €8m to €30m, largely from Higuain €18m (Milan €10m, Chelsea €8m) and Favalli €5m (Genoa). Again, this was much more than other Italian clubs with the next highest being Atalanta €13m, Genoa €9m and Fiorentina €7m.
#Juventus wage bill shot up €69m (27%) from €259m to €328m, mainly due to Ronaldo’s arrival plus the renewal of some player contracts. Thanks to the revenue growth, they managed to restrict the increase in the wages to turnover ratio from 63% to 66%.
As a result, #Juventus wages have grown by €106m (48%) in the last three years, which is much more than other Italian clubs. The next highest growth was at Inter €68m, but the others were only around €20-30m.
This means that #Juventus wage bill of €328m is significantly higher than the rest of Serie A. The closest challengers are €135-145m lower in a tight band: Inter €193m, Milan €185m and Roma €184m.
Following the slight increase to 66%, #Juventus wages to turnover ratio is mid-table in Italy. Of the bigger clubs, this is lower (better) than Milan 81% and Roma 78%, around the same as Napoli 64%, but higher (worse) than Inter 51%.
However, it is worth noting that #Juventus 66% wages to turnover ratio is one of the highest (worst) among the European elite clubs. At the other end of the spectrum, Bayern Munich and Real Madrid are only 51% and 48% respectively.
The other #Juventus staff cost, player amortisation, the annual cost of writing-off transfer fees, increased by €42m (27%) from €107m to €149m, reflecting investment in the squad (the charge for Ronaldo alone is €29m). This expense has almost tripled from €51m in 2014.
As a result, #Juventus player amortisation of €149m is by far the highest in Italy, a long way ahead of Inter €85m, Roma €83m and Milan €80m. To place this into context, player amortisation at the big spending Manchester clubs (United and City) is around the same level.
Although #Juventus net spend has not risen that much in recent years, this masks a significant increase in gross spend (averaging €191m over the last 5 years), offset by a similar movement in sales (averaging €142m over the last 5 years).
Over the last three seasons, #Juventus have the third highest net spend in Serie A of €153m, though this is a fair way behind Milan €327m with Inter in second place with €173m. Roma have net sales of €74m.
However, it’s a different story in gross spend with #Juventus €609m in the last 3 years being the highest in Italy, much more than Milan €482m, Inter €382m, Roma €328m and Napoli €264m. 2019/20 purchases include De Ligt €86m and Danilo €37m.
#Juventus gross financial debt increased from €329m to €473m, including a €175m bond issue in 2019, as well as amounts owed to factoring companies €180m, bank loans €87m and Istituto per il Credito Sportivo €31m. This debt has almost quadrupled since €124m in 2011.
#Juventus gross debt of €473m is the highest in Italy, just ahead of Inter €436m (Goldman Sachs financing). Much of Juventus debt was down to funding required for their new stadium development, but is increasingly to finance investment in the squad.
#Juventus net interest payable was up €3.0m (35%) from €8.6m to €11.6m, the third highest in Italy, but a fair way below Inter €29m and Roma €28m.
In addition, #Juventus owe €221m transfer fees, the highest in Italy, ahead of Roma €164m, Milan €140m and Inter €135m. However, on a net basis this reduces to €22m after considering €199m owed to Juve by other clubs.
Using the broadest possible definition of debt, #Juventus total liabilities of €911m are one of the highest amounts owed in Europe, only behind Barcelona €1.2 bln, Manchester United €1.2 bln and Tottenham Hotspur €1.1 bln.
#Juventus had a net €10m cash inflow in 2018/19, but only thanks to the £173m bond offering. They generated €16m from operations, but spent a net €145m on players, €14m loan repayments, €7m interest payments, €7m capital expenditure and €5m tax.
In last decade #Juventus have had €883m available cash: €284m from operations, €173m bonds, €138m loans (net), €119m share capital & €169m from decrease in cash balance. Most spent on players (net) €539m with €222m capex (mainly stadium) plus €72m tax & €50m interest.
#Juventus shareholders have approved a €300m capital increase. Agnelli noted that this “would not have been necessary, but it is a strategic choice to finance further growth.” The recapitalisation will thus be directed towards revenue growth, rather than covering the debts.
The #Juventus strategy is to invest funds in top players to drive success on the pitch to increase revenue, as exemplified by the purchase of Cristiano Ronaldo. This will require good progress in the Champions League (or they need profitable player sales) to cover growing debts.
