Unprecedented in European football! Mi Sports: Since 2019, Juventus has increased its capital four times with a total amount of nearly 1 billion euros

November 26 According to Gazzetta dello Sport, Juventus has increased its capital four times since 2019, totaling nearly 1 billion euros. Among them, the capital increase will be 300 million euros in 2019, 400 million euros in 2021, 200 million euros in 2024, and the latest capital increase of 98 million euros, totaling 998 million euros. This number is unprecedented not only in Italian football, but even in the entire European football industry.

Juventus’ latest capital increase operation is called “accelerated bookkeeping”. This is a capital increase method for institutional investors, not retail shareholders or fan shareholders, and there is no preemptive subscription right for old shareholders. Based on market demand, the final issuance price was set at 2.58 euros per share. As a result, Juventus will issue nearly 38 million new shares, which will be listed and traded on the Milan Stock Exchange. After deducting a 4.8% discount, the total amount is 102 million euros. Among them, Exor and Tether subscribed for 65.4% and 11.5% of the shares respectively, totaling 77 million euros, and the remaining 25 million euros came from other institutional investors. The demand for this capital increase exceeded the supply by more than twice. In addition to confirming the support of old shareholders, this capital increase also welcomed 15 new investors, mainly Italian and international investment funds. Each fund purchased shares with a value ranging from 500,000 euros to 1.5 million euros, and the investment period was long and non-speculative.

Exor, the holding company of the Agnelli family, has paid 30 million euros in advance to Juventus in the past few months. In this capital increase, Exor ultimately invested 64 million euros. Including previous investments, Exor has injected a total of 637 million euros into Juventus since 2019. Exor has always maintained control of a team with more than a century of history.

"We continue to strengthen Juventus on and off the field, just as we have done for the past 102 years, and we will not sell." This is the message conveyed by the Elkann team, especially regarding the acquisition intentions of Tether, led by Juve fans Devasini and Ardoino. On the other hand, cryptocurrency giant Tether confirmed its status as the club’s second-largest shareholder by paying 11 million euros and has just sent a representative to the board of directors. The funds obtained from the capital increase will be used to achieve the strategic plan for 2024-2027, with the goal of achieving breakeven in the 2026-2027 season. The nearly €100 million in equity will be used to strengthen the capital structure, gradually reduce debt, enhance the international brand image and maintain the highest level of competitive status.

Each time Juventus increases capital, it has its own specific purpose. The €300 million capital increase at the end of 2019 occurred during Ronaldo's tenure, when Juventus dominated the domestic league and reached two Champions League finals, dreaming of greater success in Europe. However, the outbreak of the new crown epidemic a few months later turned this 300 million euros into the first line of defense. The epidemic has hit hardest those clubs that are in the expansion phase, and Juventus is one of them. It should be pointed out that Juventus management also has responsibilities, including technical selection errors, low return on investment, and even risky behavior on financial statements that resulted in huge sports and economic penalties. Shareholders then had to step in to fill the financial gap. The capital will be increased by 400 million euros in December 2021 and another 200 million euros in April 2024. The new management team established in early 2022 has carried out a series of reforms and achieved results. Player salaries have dropped from 340 million euros in Ronaldo's last season (2020-21 season) to about 240 million euros currently, a drop of 100 million euros. At the same time, transfer fee amortization has also been reduced by approximately 150 million euros, resulting in salary cost savings of approximately 150 million euros over the past five years.