Juve, here’s where the money from the capital increase will go

The curtain will rise on Monday on Juventus’ 200 million capital increase, with the option offer to shareholders lasting until March 27th (and the possibility of negotiating the rights on Milan’s Euronext until the 21st). The price will be equal to 1.582 euros for each new share, with a discount of 31.87% compared to the theoretical stock market price. The majority shareholder Exor has already paid 127 million, i.e. its relevant share, as an advance and has undertaken to subscribe to any unexercised amount up to covering 100%: the recapitalization, therefore, is certain, and is the which is why a bank guarantee consortium has not been activated.

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But what will these 200 million be used for, which after expenses will be 196 net? Juventus itself explains this in detail in the information prospectus relating to the capital increase. First of all, it refers to how the 127 already injected by Exor have served above all to manage the negative cash flows due to the failure to participate in European cups, to pay debts to clubs for players purchased in the transfer bells of previous years and to reduce indebtedness . The remaining net proceeds of the recapitalization, i.e. 69 million, will be used “to finance the total net financial requirement of the group for the 12 months following the date of the prospectus estimated at approximately Euro 48 million and for the remaining part (approximately Euro 21 million) for reduce the level of non-current financial debt”, in line with the objectives of the multi-year plan which envisages the generation of cash and a return to balance sheet profit in 2026-27. In short, a defensive maneuver, the one put in place by the Bianconeri, useful for recapitalizing the club which has to deal with the economic damage of the investigations into the financial statements, quantified at around 120 million.