Would like to point out that Marchisio and Vidal are both the same value.
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The Financial Situation (40 Viewers)
- Thread starter ReBeL
- Start date
Italian papers...
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Still a loss of 48.7m, even if that is about half what it was last year.
Debt is slightly up, at 127.7m.
http://www.tuttomercatoweb.com/juventus/?action=read&idnet=dHV0dG9qdXZlLmNvbS0xMDk4NzM
Debt is slightly up, at 127.7m.
http://www.tuttomercatoweb.com/juventus/?action=read&idnet=dHV0dG9qdXZlLmNvbS0xMDk4NzM
These are good results but there are couple of things that need to be resolved. So our assets increased from 334M to 428M majorly due to increasement in players value +47M ( acquisition of new players ), intangible assets +14M, and recievables ( sold players, land...) +15M . It's a good thing but you'll see how our liabilities and mostly capital also increased this year.
Capital increased 69M as a result of subscription of shares last October. Non current liabilities increased and it led to 22M raise of liabilities overall. Current liabilities remained almost at the same level but in my experience they are something which can become a problem. Comparing them with current assets 193M:59M it means that in one year we will pay 3 times more than what we will receive. It should be other way around 2:1 in favour of current assets or at least 1:1 or your financial stability can be endangered. Our current and non currrent liabilities are comprised mostly out of loans we took from banks for transfer campaign, stadium construction and for our liquidity that when certain liability needs to be settled we have enough cash available. You can see them under "loans and other financial payables" and "payables due to transfer campaign" and they amount to 217M. So comparing 298M of our total liabilities with 65M of capital it brings up a conclusion that we finance ourselves mostly from loans. If anybody wonders 65M advances from customers are the money we received upfront for TV rights, sponsors..
Our revenues are really looking good and the main reasons are raise in ticket sales +20M and of course more money from our sponsors +10M. This year we already earned 23M for season tickets so next year I expect revenues from tickets to be closer to 40M. That really would be incredible and compared with 11M which we recorded in 2010/11 campaign you all can see what difference a brand new stadium can bring. We can argue if it was slightly bigger +10k but... Anyway 41M bigger revenues this year is a great result.
Costs increased 10M mainly as a results of increased wages ( bonuses for title) and higher external services +7.5M such as transport, accommodation, security, utilities... The good thing is lower expenses from players registration rights. It means we sold some players such as Grosso, Motta, Amauri, and others below their book value but lost 10M less on these transactions then year before when we for example had sold Diego for a fee of 14M and compared with his 20M book value it qualified as a cost of 6M so in the end we had 16M costs from selling various players in 2010/11. This year we already recorded loss of 3.8M because we sold Krasic and Elia under their book value. Marotta needs to become even more efficient when selling players. It's pointless to record costs in this way when selling a player could in fact increase our revenues even more. If somebody doesn't know book value of player is the sum we paid for acquiring them minus amortization. And that is one of our major costs. We recorded 52M of amortization as a result of our transfer campaign in the previous couple of seasons. Every player that we bring will increase this number in future so here is the answer why we haven't brought 30M player and probably won't for the next couple of seasons. If we did bring some big name and gave him 5 year contract it would mean a further increase of amortization +6M per year.
The next year as I already mentioned we will record revenues around 270M and decrease our losses even further. I expect losses to be around 20M but season after that we will probably break even.
We will cover our losses from this season out of reserves unlike last year when we had to emit shares because our capital was at it's lowest point allowed.
Capital increased 69M as a result of subscription of shares last October. Non current liabilities increased and it led to 22M raise of liabilities overall. Current liabilities remained almost at the same level but in my experience they are something which can become a problem. Comparing them with current assets 193M:59M it means that in one year we will pay 3 times more than what we will receive. It should be other way around 2:1 in favour of current assets or at least 1:1 or your financial stability can be endangered. Our current and non currrent liabilities are comprised mostly out of loans we took from banks for transfer campaign, stadium construction and for our liquidity that when certain liability needs to be settled we have enough cash available. You can see them under "loans and other financial payables" and "payables due to transfer campaign" and they amount to 217M. So comparing 298M of our total liabilities with 65M of capital it brings up a conclusion that we finance ourselves mostly from loans. If anybody wonders 65M advances from customers are the money we received upfront for TV rights, sponsors..
Our revenues are really looking good and the main reasons are raise in ticket sales +20M and of course more money from our sponsors +10M. This year we already earned 23M for season tickets so next year I expect revenues from tickets to be closer to 40M. That really would be incredible and compared with 11M which we recorded in 2010/11 campaign you all can see what difference a brand new stadium can bring. We can argue if it was slightly bigger +10k but... Anyway 41M bigger revenues this year is a great result.
Costs increased 10M mainly as a results of increased wages ( bonuses for title) and higher external services +7.5M such as transport, accommodation, security, utilities... The good thing is lower expenses from players registration rights. It means we sold some players such as Grosso, Motta, Amauri, and others below their book value but lost 10M less on these transactions then year before when we for example had sold Diego for a fee of 14M and compared with his 20M book value it qualified as a cost of 6M so in the end we had 16M costs from selling various players in 2010/11. This year we already recorded loss of 3.8M because we sold Krasic and Elia under their book value. Marotta needs to become even more efficient when selling players. It's pointless to record costs in this way when selling a player could in fact increase our revenues even more. If somebody doesn't know book value of player is the sum we paid for acquiring them minus amortization. And that is one of our major costs. We recorded 52M of amortization as a result of our transfer campaign in the previous couple of seasons. Every player that we bring will increase this number in future so here is the answer why we haven't brought 30M player and probably won't for the next couple of seasons. If we did bring some big name and gave him 5 year contract it would mean a further increase of amortization +6M per year.
The next year as I already mentioned we will record revenues around 270M and decrease our losses even further. I expect losses to be around 20M but season after that we will probably break even.
We will cover our losses from this season out of reserves unlike last year when we had to emit shares because our capital was at it's lowest point allowed.
