The majority shareholder intervenes in the light of the sports performance of the first team and the exemption from Thiago Motta
John Elkann runs to the rescue of Juventus and immediately injects 15 million in the black and white coffers, making himself available, in case, to fully cover a capital increase reserved for institutional investors up to a maximum of about 110 million. The official move yesterday is the unequivocal confirmation that the Juventus club has a strong shareholder behind him and always ready to give his support. But it is also the response to a disappointing season that has disheartened the fans and discharged the corporate plans, with the early eliminations from the Champions League and the Italian Cup, the exemption of Thiago Motta and a fourth place to be conquered. Not surprisingly, Elkann’s words, reported by sources close to him, take one and the other aspect: “We reiterate our commitment to strengthen Juventus on the field and outside, as we have done in the last 102 years. There are no 9 games at the end of the championship: all, managers, technical staff and players, must feel the responsibility of being of Juve and giving their best”.
We don’t sell
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In the letter to the shareholders of Exor, the n.1 had not mentioned Juve: it had not happened since 2021. A silence that had not gone unnoticed, especially because a year ago Elkann had woven the praise of Giuntoli. Not the indication of a disengagement, therefore, but the gesture of a patron disappointed by results not in line with the great investments on the market and, at the same time, aware that the financial statements will be done at the end of the season. One thing is certain. This property strengthening operation is a warning to sailors: Exor has no intention of selling Juventus. Elkann is the first to know that the team owned by the Agnelli family since 1923 is not an asset like the others. It is true that Juve is valid only 1.8% of the gross total of the holding holders who is now a giant of 42 billion euros. But it is equally true that the football club represents an exception. Accustomed to profits and yields from other portfolio companies, Elkann had to face copious losses in the case of Juventus. From 2019 to 2024, three recapitalizations were completed for a total of 900 million, of which 573 by Exor (the rest of the minority members). The three-year plan 2024-27 did not foresee further equity contributions but things did not go in the right direction. From the failure to qualify for the Champions League round of 16 (11 million less) to the change of technical guide (14-15 of extra-costi to be set aside if Motta will not find accommodation by the summer), the sports misadventures forced the board to update the estimates for the current season and for the next. As we wrote a few days ago, the path that should have led to contain the loss to 30 June within 32 million, so as not to erode more than a third of the share capital, equal to 15 million (the rest of the 42 million equity at 30 June 2024 was complicated, it consists of reserves). To avoid the recapitalization, sales would have been necessary for at least 30 million in the June window, unless Exor had wanted to reopen the wallet. Just what happened. To date, the variables involved are so many that the property, in a prudential perspective, has decided to intervene without delay. This is also a way not to scratch the negotiating power of the managers in the transfer market. Moreover, there is still a conquer access to the Champions League next year: the continuous presence in noble Europe is considered indispensable to pursue the goal of reaching the profit in 2026-27.
the variable
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The 15 million are a first step. And the rest? The Board of Directors has postponed any decision at the end of summer regarding the possible integration of equity, “in order to take into consideration, in particular, the impact of sports performances in Serie A and in the Fifa Club World Cup, as well as the summer transfers campaign”. If it were to serve a further contribution, up to a maximum of 10% of the market capitalization (about 110 million), the capital increase would be performed with the exclusion of the right of option. It would be an ABB, that is, an operation reserved for institutional/qualified investors, therefore not for retail. Short times and an advisor in charge of consulting significant shareholders such as Lindsell and Tether. Exor would participate at least for its share of 65.4% and, in case of need, up to full coverage.
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