The Financial Situation (34 Viewers)

[pitbull]

Thanks for the input man.

 

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[Hust]

I studied financial menagment, so from financial report which you can find on Juventus page situation is not as bad as it seems. The loss of 95 mill is not something that we will have to pay. We had revenues 172 mil in 2010/11, operating cost in amount of 196 mil, amortisation 60 mil, so after calculating those variables we came to an amount of 95 millions. But here is the trick clubs use amortisation just like firms use it and it's to reduce taxes. For those who don't know what amortisation in football means here is an explanation. When a club buys a player for example 20 mil and gives him 5 year contract, they will use it as an amortisation in amount 4 mil a year, and after 5 years player has no value of whatsoever. So if you deduct 60 millions amortisation out of this 95 you have an amount of 30 mil. And given the fact that we have and will spent 120 millions on players in past two seasons which we will pay off annually in amount of around 30 millions starting this year, we shouldn't be alarmed. Don't forget 23 mil we earn less from tv rights, 20-25 mill CL. Also they calculated 79 millions from stadium investment. I don't have time now for more detailed analysis, but those are the basics.

Nice.

 

[Vlad]

For Juventus finances is crucial that Exor holding keeps book healthy. It's the benefit for us to be part of holding company worth 8.7 billion euros. Here is more info on Exor. They made profit for first 6 month of 2011. in amount of 477 million euros ( I hope some of that will be spent on our transfers for the next transfer campaign), Net Asset Value increased in the same period 338 millions, Exor controls 60% Juventus, 30,44% Fiat ( Dodge, Alfa Romeo, Ferrari, Lancia, Jeep...), Fiat industrial 30,45 ( New Holland agriculture..),Banca Lonardo 17,4%, Cushmane and Wakefield 69,7% (It's highly renound company for real estate services over 15000 employes) and others. Exor is controlled through Agnelli Company (they control 60%) consisted of Agnelli's relatives with John Elkan as chairman. You can find more info here http://www.exor.com/?p=categorie&s=investimenti&lang=en

 

[Hust]

Good stuff man

Dodge.

 

[Boksic]

Is it from the new stadium?

Nope, new stadium costs don't effect profits.

Main reasons are:

- Lack of Champions League revenue.(Obviously we cannot change this until another year)
- Centralisation of TV rights for Serie A. (I don't think that this will change either)
- Ticket sales down. (This will increase dramatically for the new year)
- Provisions to cover one off costs (This is a one off)

An interesting point is that we are going to sell more shares to increase cash (something Man Utd are doing).

 

[Vlad]

Nope, new stadium costs don't effect profits.

They calculated costs from stadium, it's on the bottom of page 2. Obviously not all, but part of liabilities for this period. They took long term credit for this project.
http://www.juventus.com/wps/wcm/myc...&CACHEID=6a31423b-fa0e-4c6a-bc9b-070275b9977d

 

[Boksic]

They calculated costs from stadium, it's on the bottom of page 2. Obviously not all, but part of liabilities for this period. They took long term credit for this project.
http://www.juventus.com/wps/wcm/myc...&CACHEID=6a31423b-fa0e-4c6a-bc9b-070275b9977d

That is just talking about net financial position (Cash in bank vs finance owed) its not to do with profits.

In other words its just looking at the cash position of the business, which is obviously down due to the cash involved in building the stadium.

The 90m loss is seperate (although it will impact the cash available)

 

[Vlad]

Look at page 9 Income statement and the way to calculate income (profit ), revenues-operating cost-amortisation. Part of stadium costs for this period are under operating costs, bottom page 3.

 

[sallyinzaghi]

if I recall correctly I read somewhere they're waiting for a 120mln approval in October?

 

[Turk_Bianconero]

Main reason behind financial turmoil is Marotta and his fishy deals.

 

[Vlad]

Main reasons are lack of CL money, centralised TV rights in Italy, and I would say bad transfer markets decisions from Secco. Amauri, Grosso, Poulsen, Melo, Sissoko, Grygera and others, not just in terms of purchases but also in terms of high salaries and lenght of contracts.

 

[Bianconero_Aus]

Main reasons are lack of CL money, centralised TV rights in Italy, and I would say bad transfer markets decisions from Secco. Amauri, Grosso, Poulsen, Melo, Sissoko, Grygera and others, not just in terms of purchases but also in terms of high salaries and lenght of contracts.

No wrong, Marotta is to blame for all our woes obviously.

 

[Albo]

We are going to get 80.97 milion € from TV rights , idk about other teams .
I hope anyone can tell us about other teams (Merda,Milan,Roma)

 

[Trequartista]

Well, Serie A now has a collective TV rights deal. This will decrease our revenue from TV rights but it will increase the revenues of smaller teams, which should be good for the parity of the league.

Top clubs will be weaker though.

 

[ZoSo]

I think it only weakens Serie A if Barcelona & RM keep getting the same TV money. Barca & RM get like €160m from TV money. We'll get half of that...

 

[Trequartista]

I think it only weakens Serie A if Barcelona & RM keep getting the same TV money. Barca & RM get like €160m from TV money. We'll get half of that...

It is good for the Serie A as a competition as more teams can compete and the weaker teams are better. It's in Europe that this may hurt us as our top teams have less money to spend.

 

[ZoSo]

If the top teams can't compete in Europe then we may end up losing another CL spot. Bottom feeder teams like Lecce, Bologna and Cagliari etc will never make Europe so there is little point in giving the money to them. It only serves to weaken the top teams and slightly strengthen the bottom teams.

 

[Trequartista]

We certainly won't lose another Cl spot as We would have to be behind France, Portugal and Russia.

 

[ZoSo]

Serie A may be behind France and Portugal at the end of this season depending on how well all the teams from these teams do. If Serie A has similar CL and EL outcomes at the end of this season as last, Serie A will definitely be behind Ligue 1.

This table says it all. Serie A is clinging onto 4th by the 2007-08 season and once that goes at the end of this season Serie A will be in trouble.

 

[Trequartista]

Serie A may be behind France and Portugal at the end of this season depending on how well all the teams from these teams do. If Serie A has similar CL and EL outcomes at the end of this season as last, Serie A will definitely be behind Ligue 1.

http://en.wikipedia.org/wiki/UEFA_coefficient#Final_ranking_in_2011

That table says it all.

Portugal are maxed out imo as they had two teams in the EL final last year.They won't get higher then what they have.