The Financial Situation (69 Viewers)

[ReBeL]

Juventus H1 net profits higher on player sales, club sees FY breakeven


Sales in the first half fell 6.9 pct to 101.5 mln eur, affected by a sharp fall in TV soccer rights and sponsorship revenues, while operating income came in at 20.2 mln from a loss of 17.2 mln a year before.

Juventus said its full-year results will be affected by the club's relegation to Serie B from Serie A. Relegation prompted the club to launch a plan to cut costs, especially players' wages, leading to the sale of many top-flight players. The club said it expects to break even for the full-year 2006-2007.

Juventus said net debt at Dec 31 was 75.1 mln eur from 12.9 mln at Jun 30. Net assets to Dec 31 totaled 29.6 mln from 14.2 mln at Jun 30.

The club said net profits in the second quarter to Dec 31 were 3.6 mln eur from 1.4 mln the year before, while sales in the quarter were 40.1 mln from 65.3 mln the previous year.

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[ReBeL]

Seeing all those threads, I was confused where I can post this news, so I chose a general title that can merge all the other threads:

http://www.juventuz.com/forum/search.php?searchid=557362

If any mod is convinced with the idea, it would be nice to see all of them merged in one thread...

I hope I'll try to analyze today's report later

 

[metalhead]

This actually looks better than I expected. If we get back to seria A next season, we'll have more TV rights income. Its not a bad situation since the Angielli's didnt put anything into the club to help out with the relegation this year.

 

[Red]

Could have been a lot worse. Should give a reasonably solid basis to start from next year and to build up to where we were before the relegation.

 

[C4ISR]

Seems were on track. It says we will break even this yr which is good.

Any business students here who can break down the numbers even more?

 

[Wraith]

I'm not a business student, but I don't see how this looks good...

1. Fall in sales is understandable, due to TV rights and Tamoil. So that should get better next season.

2. The increase in debt is over 60 mil. Most clubs have a lot of debt, but...the fact that our debt got a lot bigger can't be a good sign. Now the board has to plan for the repayment of debt + interest on the increase in debt as well. That is, unless...

3. Selling players accounts for part of it. Could be that the clubs who bought our players are paying us in installments. Even so, that combined with the increase in assets won't recoup the 60 mil, I don't remember how much it does add up to.

Basically now we have a lot of debt and will need to repay it somehow, blah blah, this doesn't sound new...

 

[Miss Dangerous*]

Everything is changing when you play in Serie-B! we have to get used to it

 

[metalhead]

I'm not a business student, but I don't see how this looks good...

1. Fall in sales is understandable, due to TV rights and Tamoil. So that should get better next season.

2. The increase in debt is over 60 mil. Most clubs have a lot of debt, but...the fact that our debt got a lot bigger can't be a good sign. Now the board has to plan for the repayment of debt + interest on the increase in debt as well. That is, unless...

3. Selling players accounts for part of it. Could be that the clubs who bought our players are paying us in installments. Even so, that combined with the increase in assets won't recoup the 60 mil, I don't remember how much it does add up to.

Basically now we have a lot of debt and will need to repay it somehow, blah blah, this doesn't sound new...

Debt is not a problem. All large companies have debt. Even man U, the most profitable club in the world has debt.

1.It seemed they borrowed money to buy assets, which grew by around 15m. These should generate profit.

2. We had an operating loss of 17m this time last season, now we have 20m income. Huge difference around 40m. This means they can pay the debt comfortably.

3. We made more profit this half year compared to last year.

It looks good to me, unless someones messed up the accounts

EDIT: I just looked at the statments from Juventus.com and basically we balanced out our huge losses from TV rights and sponsorships by reducing player wages and selling our stars. The debt was probably used to buy the assets and pay for other expenses (maybe lawyers)

We need Seria A cuz if we dont, we'll probably have to sell more players. The club is just trying to break even expecting a return to profitability next season.

 

[Wraith]

Debt is not a problem. All large companies have debt. Even man U, the most profitable club in the world has debt.

1.It seemed they borrowed money to buy assets, which grew by around 15m. These should generate profit.

2. We had an operating loss of 17m this time last season, now we have 20m income. Huge difference around 40m. This means they can pay the debt comfortably.

3. We made more profit this half year compared to last year.

It looks good to me, unless someones messed up the accounts

0. Man Utd has a lot of debt because the Glazers dumped their loan to buy the club on the club itself. It's not because a football club by definition has a large debt. They are paying over 60m quid a year of interest alone, not counting the 700m quid of actual debt, I think that's what it is. If I'm not mistaken, they also make a lot more money than we do, and they don't have enough money to buy any good players without selling a good player. That is also due to the Glazers' noninvestment...but anyway, back to the point. Debt is bad if foisted on you suddenly and not well planned for in advance. Our debt payment was probably hastily financed.

1. What are these additonal assets, exactly? The tv channel maybe...but what else? I have no idea.

2. I think [not sure] that our 20m income came from selling our players. Operating loss doesn't count the owner's injections; that's why Chelsea's operating at a loss. Besides, is 20m income actual hard cash? Like I said, we might be getting paid in installments that don't accrue interest but trying to pay off a debt that does.

3. Profit = in - out, and that's it. Since sales went down, this shows we also cut costs a lot aka player wages. Maybe transfer fees also went into the "in" column.

Edit: I just checked the past financial statements. While I might be wrong, since they seem to be written to be deliberately obfuscating, I think at the end of 2004 our debt was only 3m. End of 2005 and 2006, the debt was around 10-15m. But this could be incorrect, the reports are so confusing. They even change format completely from year to year...

 

[CORVETTE]

Juve: In Calo Diritti Tv E Sponsor, Utili a 15, 4 milioni nel 2/o trimestre esercizio

ANSA)-TORINO, 13 FEB-Utili per 15,4 milioni per la Juve nel primo semestre dell'esercizio di bilancio 2006-07, nonostante i minori introiti da diritti tv e sponsor. E' quanto emerge dai dati esaminati dal cda del club bianconero, riunito a Torino sotto la presidente di Giovanni Cobolli Gigli. Nel secondo trimestre l' utile e' stato di 3,6 milioni: i ricavi sono ammontati a 40,1 milioni (-38,7% rispetto allo stesso periodo del bilancio precedente). I ricavi del semestre sono invece ammontati a 101,5 milioni (-6,9%).

 

[juvestar77]

we hope the financial situation being better

 

[Belgico]

It could be worse

 

[Guardian]

I bought an original juve T-shirt.
I hope a helped the Juve cause

good thread Rebel int: The financial situation is not that bad as I thought it was

 

[Turk_Bianconero]

I bought an original juve T-shirt.
I hope a helped the Juve cause

good thread Rebel int: The financial situation is not that bad as I thought it was

http://www.juvestore.com/

 

[Wraith]

What did everyone expect, negative profits, no liquid assets, no money, bankruptcy of the club? I guess the actual scenario is better than that...but I don't feel terribly optimistic. Obviously a return to Serie A will make things better, but we're not out of the woods yet financially or in a sporting sense.

 

[Elvin]

I bought an original juve T-shirt.

Yeah I bought one too, hope it helps a lil'

 

[CORVETTE]

Juventus: il costo dell'amicizia fra Tamoil e i bianconeri

Dare un valore all'amicizia negli affari è difficile. E può costare caro. Si prenda il caso della Juventus e della libica Tamoil. Con la condanna della Juve alla serie B, il 6 settembre scorso la società di Tripoli ha stracciato il contratto di sponsorizzazione del 25 marzo 2005,che prevedeva il pagamento di 20,4 milioni di euro a campionato per cinque anni (fino al 30 giugno 2010), poi di 26 milioni per i cinque anni successivi. Oilinvest aveva versato anche 18 milioni una tantum. Vani i tentativi della Juve di fare un nuovo accordo per quattro anni. Il 21 dicembre l'annuncio della separazione. Tuttavia «Juventus e Oilinvest hanno convenuto amichevolmente che fino al termine della stagione 2006-2007 la squadra continuerà ad indossare la maglia recante il marchio Tamoil».Che significa «amichevolmente »? Lo spiega la relazione trimestrale approvata il 13 febbraio dal cda Juventus: «L'impatto economico negativo sull'esercizio in corso in termini di minori ricavi sarà di circa 8 milioni».

Il Sole24ore

 

[CORVETTE]

Borsa Bene la Juve, male Lazio e Roma

19:44 del 28 febbraio

Roma e Lazio piuttosto deboli oggi a Piazza Affari. I titoli delle due squadre hanno chiuso in ribasso: -0,61% a 0,6060 euro per i giallorossi, -1% a 0,396 euro per i biancocelesti. Segno opposto per la Juventus: +1,03% a 1,8640 euro.

 

[Jem83]

"Bene la Juve, male Lazio e Roma"

Just the way I like it

 

[AngelaL]

Borsa Bene la Juve, male Lazio e Roma

19:44 del 28 febbraio

Roma e Lazio piuttosto deboli oggi a Piazza Affari. I titoli delle due squadre hanno chiuso in ribasso: -0,61% a 0,6060 euro per i giallorossi, -1% a 0,396 euro per i biancocelesti. Segno opposto per la Juventus: +1,03% a 1,8640 euro.

Shares in AS Roma & Lazio have gone down & Juventus shares have gone up.:thumbs: (I think).