Football Business : Juventus loses double due to Covid-19 impact

The world of football is badly impacted due to Covid-19 pandemic. The same has once again got reflected as one of the world’s most followed football club Juventus announced its annual results.

Juventus has seen its losses rise by $37.3m to $80.45Mn for the year ending June 30, 2020.

The world’s most marketable footballer Cristiano Ronaldo plays for the club but still Juventus reported third consecutive year of losses. According to the club, Covid-19 has further impacted their chances of getting profitable next financial year.

SerieA : Juventus won the Serie A title for ninth consecutive year but loses continue

The Covid-19-affected 2019-20 season, which saw Juventus win the Serie A title for the ninth consecutive campaign, resulted in revenues falling from €621.4m to €573.4m. While costs also fell, from €458.5m to €414.1m, this couldn’t prevent other sizeable losses.

Concerning Covid-19, the Serie A season was suspended on March 10, with domestic competitions only resuming on June 12. Internationally, in February Juventus played the home leg of the Round of 16 of the Uefa Champions League against Olympique Lyonnais. The Champions League was then suspended and restarted on August 7, with Juventus ultimately being eliminated by its French opponent.

Juventus said that while Covid-19 restrictions meant not only that the museum and club shops could not be opened to the public for a few weeks, with a subsequent impact on merchandising revenues, closed doors matches resulted in a downturn in matchday revenues and the pro-rata refunds of standard season tickets for the 2019-20 season, as well as of tickets already sold, along with a fall in broadcast rights income.

In order to partially mitigate the economic and financial impact of the suspension of sporting activities, the club reached a wage cut agreement with first team players and then-manager Maurizio Sarri for a reduction of their 2019-20 wages that equated to the monthly salaries of March, April, May and June 2020. Juventus said the economic and financial effects of the agreement were positive for approximately €90m in the 2019-20 financial year

However, Juventus was able to secure two major sponsorship deals in the financial year. Due to the performances achieved by the first team and the increased Juventus brand awareness at a worldwide level, in October 2019 the Italian division of Fiat Chrysler Automobiles and financial services group Allianz this year.