Juve, the outgoing board of directors approves the new budget with a loss of 239 million

The outgoing Juventus board of directors, also chaired this afternoon by Andrea Agnelli pending the inauguration of the new directors on 18 January, approved the draft financial statements and the consolidated financial statements for the year ended 30 June 2022 in a revised version, based on the reliefs received after the initially approved version with a loss of 254.4 million. The new financial statements, which will be approved by the shareholders’ meeting on 27 December 2022, show a loss of 239.3 million against the adjustments made, the same which instead for the previous year increased the loss from 209.9 million approved at the time to the 226.8 million of the revised version now.

Re-approval

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“The re-approval of the draft financial statements and the consolidated financial statements as at 30 June 2022 – explains Juventus – follows the analyzes and evaluations carried out by the Board of Directors on 28 November last, acquired new updated opinions given in the light of the examination of the documentation relevant to the investigation by the Public Prosecutor’s Office, with reference to the so-called ‘salary maneuvers’ carried out in the 2019/2020 and 2020/2021 financial years”. The directors reiterate that “although the accounting treatment adopted (in the previous version, ed) falls within those permitted by the applicable accounting standards, the Company, in the process of adopting a perspective of heightened prudence, has decided to revise some estimates and assumptions which involve adjustments to the estimates of charges pertaining to the end of June 2020, 2 end of June 2021 and end of June 2022. Juventus will continue to collaborate and cooperate with the supervisory and sector authorities, without prejudice to the protection of its rights in relation to the disputes raised against the Company’s financial statements and press releases by Consob and the Public Prosecutor’s Office”.

Explanation

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What has changed in the new white? Juventus explains: “The Board of Directors, in the process of adopting a perspective of heightened prudence, after having carefully considered potential alternative accounting treatments, has approved a new draft financial statements and a new consolidated financial statements as at 30 June 2022 in which the estimate of the probability of fulfillment of the conditions for remaining in the squad was revised upwards for those players who in the 2019/2020 and 2020/2021 football seasons gave up part of their salaries and with whom wage supplements were subsequently agreed, respectively and “loyalty bonus” and the provisions for the charges for the wage supplementation of the so-called “first maneuver” and the charges for the “loyalty bonus” of the so-called “second maneuver” were reflected pro-rata temporis starting from the starting dates of a so-called “constructive obligations” prudentially identified, with the support of independent experts, in June 2020 for r the so-called “first manoeuvre” (month in which sports competitions resumed) and in May 2021 for the so-called “second manoeuvre” (month in which the draft supplementary agreements would have been signed). This approach entails a different distribution of the above charges on the financial years ended 30 June 2020, 2021 and 2022, compared to what is shown in the previously approved financial statements of the Company. Conversely, the effects of this approach are nil on cash flows and net financial debt for the years ended 30 June 2020, 2021 and 2022″. In particular, the loss goes from 90 to 93 million for 2019-20, from 210 to 227 for 2020-21 and from 254 to 239 for 2021-22.

UEFA

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The administrators also give an account of the proceeding opened by UEFA against Juventus: “On 1 December 2022, the UEFA Control Financial Control Body, ‘following the alleged financial violations which have recently been made public following the proceedings initiated by the Consob and the Public Prosecutor of Turin’, has launched a procedure aimed at verifying compliance with the UEFA Club Licensing and Financial Fair Play Regulations – 2018 Edition. The Company will fully cooperate with UEFA in the context of the procedure and will provide all information and data useful aimed at demonstrating that the economic, equity and financial situation of the Company has not changed significantly with respect to what was reported to the CFCB in the context of the signing of the Settlement Agreement”.