Juventus' first half year profit takes 75 per cent hit

28 February 2019

Juventus half year report financial economy
Photo: Getty Images The half year-report from Juventus, listed on the stock exchange in Milan, shows a significant drop in profits. Commercial growth is impressing though.

Commercial income increased by 45 percent to £92.8 million, meaning Juventus now is in line with Premier League’s big six.

Profits down due to lower revenue from player sales, increased costs for players and staff and higher amortisation on players’ rights.

Emil Gjerding Nielson nielson@offthepitch.com

Juventus decreased their profit before tax by 75 percent in the first half year of the 2018/2019 season, as lower revenue from player sales, increase in staff and player costs and higher player amortisation weighed down the club’s budgets, the club revealed.

Profit fell to £10 million from £40 million the year before, though the costs were offset by an increase in operating revenue to £50 million, the club said in a statement.

The club’s commercial income rose by 45 percent to £93 million from £64 million, driven by an increase in revenue from sponsorships and sales of products and licenses.

Closing in on Big 6 in Premier League

If the rise in commercial income keeps the pace for the rest of the season, it could be a sign Juventus are increasingly competing with the Premier League top six clubs on the commercial front.

Last season, the Italian club’s commercial income was fifth compared to the English top six clubs ahead of Arsenal, excluding Tottenham whose numbers for the season are not yet public.

Manchester United was first with a commercial income of £268 million ahead of Manchester City with £232 million, Chelsea on £165 million and Liverpool on £154 million. Juventus’ commercial income stood at £126 million, while Arsenal’s was at £107 million.

Player amortisation and write-downs of players’ registration rights rose to £67 million from £46 million with the purchase of Cristiano Ronaldo from Real Madrid for £86 million being a major posting.

In December last year, Juventus revealed the extension of a sponsorship with Adidas, which was set to expire in 2021, to 2027 with the deal being worth a minimum of £352 million. Adidas paid out an additional bonus of £13 million to Juventus in the first half of the current season.

Increase in player amortisation and wages

Player amortisation and write-downs of players’ registration rights rose to £67 million from £46 million with the purchase of Cristiano Ronaldo from Real Madrid for £86 million being a major posting.

In February, Juventus announced they had raised £151 million of their five-year debt, according to Financial Times, to seek further funding after the purchase of Ronaldo last year.

Costs of player and staff wages also went up from £91 million to £123 million.
The club are listed on the Milan Stock Exchange and their share price is up 18 per cent this year, according to data from MarketWatch. The market cap of Juventus is £1,33 billion.