The Financial Situation (84 Viewers)

[.zero]

our debt decreased cause in December or so Exor&co put 300m into juventus to lower it

Gracias

Ok so a portion of the cash injection from EXOR was used to pay down a small amount of operating debt. Was it their version of a stimulus check for the impending erosion of ticketing revenue which typically funded salaries of employees, staff, players, etc?

Typically parent investors rarely re-invest cash to pay down debt and rather as a loan for business development. Curious to see how the funds will be parsed for use throughout the remainder of the calendar (not fiscal) year.

 

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[Valerio.]

Gracias

Ok so a portion of the cash injection from EXOR was used to pay down a small amount of operating debt. Was it their version of a stimulus check for the impending erosion of ticketing revenue which typically funded salaries of employees, staff, players, etc?

Typically parent investors rarely re-invest cash to pay down debt and rather as a loan for business development. Curious to see how the funds will be parsed for use throughout the remainder of the calendar (not fiscal) year.

yes part of that money was to lower the operating debt and some was meant to bring in players.
Sadly Covid eroded the part that was meant to bring in players....

 

[U Picciriddu]

Gracias

Ok so a portion of the cash injection from EXOR was used to pay down a small amount of operating debt. Was it their version of a stimulus check for the impending erosion of ticketing revenue which typically funded salaries of employees, staff, players, etc?

Typically parent investors rarely re-invest cash to pay down debt and rather as a loan for business development. Curious to see how the funds will be parsed for use throughout the remainder of the calendar (not fiscal) year.

They invested ~250m in debt, but I thought that the rest would be used to invest in potential commercial income (offices in China, US, etc). And not for players. Honestly I think that the crisis barely changed anything of what they already wanted to do with that 300m.

I also disagree that ticket sales cover the salaries of players and staff at big European teams.

 

[Valerio.]

They invested ~250m in debt, but I thought that the rest would be used to invest in potential commercial income (offices in China, US, etc). And not for players. Honestly I think that the crisis barely changed anything of what they already wanted to do with that 300m.

I also disagree that ticket sales cover the salaries of players and staff at big European teams.

dude in 2019 ticketing brought us 70.1m
This year we got 36m for the first part of the seaon and the projection was higher than 70.1m if the season ran normally

 

[.zero]

They invested ~250m in debt, but I thought that the rest would be used to invest in potential commercial income (offices in China, US, etc). And not for players. Honestly I think that the crisis barely changed anything of what they already wanted to do with that 300m.

I also disagree that ticket sales cover the salaries of players and staff at big European teams.

250m to pay down debt?

The last thing most firms would look to do during the beginning of a global economic downturn is to pull out cash to pay down debt. Shareholders can't be happy with the EXOR board for doing that. It seems shortsighted but I don't know the mechanics of the European accounting system and sorcery involved to make things works.

Ticket sales, media rights (tv, steaming) and sponsorship all comprise the largest proportions of a pro team's revenue pie (gambling/gaming to be the largest in the next few years). What is the distinction for pro Euro teams?

 

[U Picciriddu]

dude in 2019 ticketing brought us 70.1m
This year we got 36m for the first part of the seaon and the projection was higher than 70.1m if the season ran normally

Yes but the gross wages were 250m. So it takes up a part, but far from everything and those 250m are just the players.

If we’d only use the ticket revenues for the salaries we’d be Siena by now.

 

[.zero]

Yes but the gross wages were 250m. So it takes up a part, but far from everything and those 250m are just the players.

If we’d only use the ticket revenues for the salaries we’d be Siena by now.

Of course it would be a blended model to accumulate funds to pay for SG&A. But where does the other influx of income come to pay for those expenses outside of media rights and tournament bonuses?

 

[U Picciriddu]

Of course it would be a blended model to accumulate funds to pay for SG&A. But where does the other influx of income come to pay for those expenses outside of media rights and tournament bonuses?

I think in football there are 3 main revenue streams: ticket sales, broadcast and commercial income. And the 4th will be good old plusvalenza of course

At Juventus (and as far as I can remember in those years where I tried to understand our finances), the main revenue sources has always been broadcast revenues

Only since Ronaldo came we had a massive increase in commercial income and I remember that Agnelli was proud to say last december that those income would finally be as much as the tv revenues. I thought that with the capital increase he wanted to build the foundations of being a commercial powerhouse, because CR7 won’t stay forever.

I think that we rely a lot on our commercial revenues and just (simply as it sounds) lower the costs. There were some problems with the last payment of Sky aswel. Overal we were pretty lucky with the increased deals from Adidas and Jeep.

 

[JUVEMOOD]

Who thinks if there was a limit on foreign players in the team then the effect of corona financially would be less than 2 bn which the boss talked about?

Sent from my SM-N976Q using Tapatalk

 

[.zero]

If you extrapolate that then the effects would range much wider and more prominently in the actual makeup of domestic leagues and the commercial operating models

 

[Fab Fragment]

I think in football there are 3 main revenue streams: ticket sales, broadcast and commercial income. And the 4th will be good old plusvalenza of course

At Juventus (and as far as I can remember in those years where I tried to understand our finances), the main revenue sources has always been broadcast revenues

Only since Ronaldo came we had a massive increase in commercial income and I remember that Agnelli was proud to say last december that those income would finally be as much as the tv revenues. I thought that with the capital increase he wanted to build the foundations of being a commercial powerhouse, because CR7 won’t stay forever.

I think that we rely a lot on our commercial revenues and just (simply as it sounds) lower the costs. There were some problems with the last payment of Sky aswel. Overal we were pretty lucky with the increased deals from Adidas and Jeep.

How much do our different sponsors pay us?

 

[Valerio.]

How much do our different sponsors pay us?

Adidas 51m/year fix + Royalties
Jeep 42m/year
Allianz 103m for naming stadium till 2030 (so around 10m/year)

Those are the known ones
We dunno how much smaller sponsors pay us

 

[Fab Fragment]

Excuse my ignorance, but does paying us $103 million help Allianz with that much of a name recognition?

 

[Valerio.]

Excuse my ignorance, but does paying us $103 million help Allianz with that much of a name recognition?

over a ten years deal? I guess they do if they make multi-stadiums sponsorships deals
Else why would they waste money?

- - - Updated - - -

L’impianto torinese diventerà così dall’1 luglio prossimo il settimo impianto brandizzato Allianz: oltre alla celebre Allianz Arena di Monaco di Baviera, casa del Bayern e del Monaco 1860, l’insegna del gruppo assicurativo tedesco è presente anche sugli stadi di Nizza (Allianz Riviera), Sydney (Allianz Stadium), sullo stadio londinese della squadra di rugby dei Saracens (Allianz Park), sullo stadio del Palmeiras (meglio conosciuto come Palestra Italia) a San Paolo del Brasile (oggi rinominato Allianz Parque) e sullo stadio del Rapid Vienna (Allianz Stadion).

they sponsor many teams for stadiums naming rights

 

[Siamak]

 

[rainhard]

over a ten years deal? I guess they do if they make multi-stadiums sponsorships deals
Else why would they waste money?

- - - Updated - - -

L’impianto torinese diventerà così dall’1 luglio prossimo il settimo impianto brandizzato Allianz: oltre alla celebre Allianz Arena di Monaco di Baviera, casa del Bayern e del Monaco 1860, l’insegna del gruppo assicurativo tedesco è presente anche sugli stadi di Nizza (Allianz Riviera), Sydney (Allianz Stadium), sullo stadio londinese della squadra di rugby dei Saracens (Allianz Park), sullo stadio del Palmeiras (meglio conosciuto come Palestra Italia) a San Paolo del Brasile (oggi rinominato Allianz Parque) e sullo stadio del Rapid Vienna (Allianz Stadion).

they sponsor many teams for stadiums naming rights

Those money better go to promotion for the company, instead go to the tax
that is the thinking of company like Allianz

 

[Karim30]

250m to pay down debt?

The last thing most firms would look to do during the beginning of a global economic downturn is to pull out cash to pay down debt. Shareholders can't be happy with the EXOR board for doing that. It seems shortsighted but I don't know the mechanics of the European accounting system and sorcery involved to make things works.

Ticket sales, media rights (tv, steaming) and sponsorship all comprise the largest proportions of a pro team's revenue pie (gambling/gaming to be the largest in the next few years). What is the distinction for pro Euro teams?

Wasn't it done before the pandemic? If I remember correctly it was a cheap way to finance our debt.

 

[Xperd]

 

[Elvin]

The club gets 300 mil to improve but now it only helps to keep us afloat. We really are cursed.

 

[kappa96]

if we would have payed full salaries in the covid period we would be - 161 mil. in the red
salaries amount to 90 million spared , according to football italia