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Juventus brand value fell by 13 percent because of crisis in italian economy
"Brand Finance"
"Brand Finance"
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The Financial Situation (10 Viewers)
- Thread starter ReBeL
- Start date
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Explanation why juve can spend big for this season. http://www.myjuventus.net/2012/07/juve-can-buy-big-here-is-why.html
We have some room in terms of wages but we should offload more than a few players as well if we want to keep our wages under 140mil. Also our current liabilities are four times bigger than our current assets, which could be problem in the future. Recommended ratio is 2:1 in favour of current assets and we are far from that. We infact had problem last October with liquidity which brought to financial injection from Exor. If that didn't happen we would be in unpleasant situation. Our short term liabilities couldn't be paid from current assets. When that happens you're in big truoble.
The thing which worries me is the fact that our expenses last year were 50% bigger than our revenues. On the positive side half of that amount was amortization and we reduced difference between revenues and expenses this year, but I repeat we should sell some players to balance the books. CL revenue will also tribute to that couse along with more comercial revenue. Stadium was a big step forward for us and will also help us to break even in next 2 or 3 years. Another financial injection will probably be needed this fall but after that we should be OK.
Another fact, last year we earned 40mil less than year before from TV rights as a result of centralised sale. It's same with other big Italian clubs and we should strive to change that. Roughly from 130mill it decreased to 90mil.
The thing which worries me is the fact that our expenses last year were 50% bigger than our revenues. On the positive side half of that amount was amortization and we reduced difference between revenues and expenses this year, but I repeat we should sell some players to balance the books. CL revenue will also tribute to that couse along with more comercial revenue. Stadium was a big step forward for us and will also help us to break even in next 2 or 3 years. Another financial injection will probably be needed this fall but after that we should be OK.
Another fact, last year we earned 40mil less than year before from TV rights as a result of centralised sale. It's same with other big Italian clubs and we should strive to change that. Roughly from 130mill it decreased to 90mil.
When you look at profit it's recomanded to look last five years. There are numerous ways for company to increase it's profit in one year. You can use smaller amortization rate, decrease costs through less guaranties or some other accounting policy. Of course in period of 5 years it all evens out. There is also a fact that profit can be somewhat different from actual cash recieved.
