Juventus, Italy's most successful football club, are reportedly seeking a fresh €200m investment from banking partners following the release of more losses in its latest financial report. The club's shares on the Milan Stock Exchange have seen a significant drop, and the new investment is being viewed as a lifeline to offset the club's financial losses.
The Agnelli family, the majority owners of Juventus, have been grappling with financial turmoil for quite some time now. The family has lost more than €600m in the last five years, with the team last posting a net profit in the 2016-17 season. The extra capital from the new investment is needed to help issue more shares for the club and offset the increasing net debt.
Accusations and impact on performance
Earlier this year, Juventus were accused of market manipulation by allegedly inflating player prices, among other accusations. The club was initially handed a 15-point deduction, which was later rescinded pending a retrial. However, the financial worries off the pitch have evidently impacted the club's performance on the pitch.
Juve have seen a drastic fall from grace. After winning nine consecutive Serie A league titles between 2011 and 2020, the club has not won the Scudetto since and finished outside the qualification positions for the UEFA Champions League for the first time in over a decade.
Adding to the club's woes, Juventus were banned from European competition for this season. The club was found to have broken UEFA financial fair play rules, further exacerbating the financial issues surrounding the club.
The Agnelli family's plan
In an attempt to turn their fortunes around, the Agnelli family is looking to bankers who previously cashed out their stakes in the club to re-invest. However, these bankers may not be able to make as much of a return on profit as they previously did.
Forbes has stated that the only way Juventus will be able to make money is if ‘the Agnelli family sells’, which would bring the end to an ownership that dates back to 1923.
The financial struggles of Juventus serve as a stark reminder of the financial realities that even the most successful football clubs can face. The club's future now hinges on securing fresh investment and potentially making significant changes to its ownership structure. As the Agnelli family seeks to navigate these turbulent waters, the world of football watches on with bated breath.
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