(Finance) – The Board of Directors of Juventus Football Club approved the proposal capital increase paid social security up to a maximum of 200 million euros, including the surcharge and stock split in the ratio of 1 share for every 10 Juventus shares held, resolving to this end to convene the Shareholders’ Meeting, in extraordinary session, for 23 November 2023 and approved the separate financial situation as of 30 September 2023 which shows a loss of more than one third of the share capital.
The economic and financial performance of the first quarter of the year – explains the company – is penalized by the normal seasonality of
business, since the recognition in the income statement of important revenue items (mainly revenues from audiovisual and stadium rights) is correlated to the – limited – number of home matches played in the reference period, while almost all of the cost items ( including players’ wages and amortization relating to their performance rights) is charged to the income statement on a straight-line basis. The first quarter of the current financial year is also penalized – both economically and financially – by the lost revenues deriving from participation in UEFA sports competitions and by certain non-recurring costs relating to registered staff.
As a result of the factors set out above – the company continues – one emerges from the separate balance sheet as at 30 September 2023 loss for the quarter amounting to 75.1 million euros, “significantly higher than the pro-quota of that expected for the entire financial year”. This loss “determines a reduction in Juventus’ net assets such as to integrate the case of capital reduction for losses below the legal minimum”.
The Capital Increase is part of the broader context of the measures aimed at supporting the achievement of the strategic objectives of the long-term plan for the financial years 2023/24 – 2026/27 (in particular: maintenance of sporting competitiveness at Italian and international level, increase visibility of the Juventus brand, achievement and consolidation of economic/financial balance, as well as a significant and structural reduction in net financial debt), contribute to a better balance of financing sources and the necessary recapitalization of the Company, as well as deal with the economic effects negative on the financial years 2022/23 and 2023/24 of the proceedings in the Italian and international sports field.
The majority shareholder EXOR which holds 63.8% of Juventus’ share capital has already expressed its opinion support for the operation and has undertaken to subscribe to its relevant portion of the Capital Increase.
Furthermore, the Board of Directors, having taken note of the EXOR shareholder’s willingness to make a payment into the account
future capital increase, decided to proceed with the request for an initial payment towards the future capital increase
capital by the shareholder himself for a total of 80 million, in order to strengthen the capital and financial structure of the company
Company pending the execution of the Capital Increase.