Juventus

 

 

(63.77% of share capital)

 

 

 

The figures of Juventus Football Club S.p.A. for the first quarter of 2013/2014 (July 1 – September 30, 2013) are taken from its Interim Report at September 30, 2013 and presented and commented below.

  Quarter I  
€ million 2013/2014 2012/2013 Change
Revenues 55.6 54.6 1.0
Operating costs (55.9) (49.3) (6.6)
Operating loss (14.9) (8.8) (6.1)
Loss for the period (18.4) (11.6) (6.8)
  Balances at    
€ million 9/30/2013 6/30/2013   Change
Shareholders' equity 30.3 48.6 (a) (18.3)
Net financial debt 178.2 160.3   17.9
(a) Figure refers to the financial statements for the year ended June 30, 2013. It does not coincide with the figure relating to the accounting data for the period January 1 – June 30, 2013 prepared by Juventus Football Club for the first half consolidation in EXOR, owing to transactions that occurred subsequent to the approval of EXOR’s Half-Year Financial Report. The effect of such transactions, for EXOR, is presented in the third quarter of 2013. The interim data cannot be construed as representing the basis for a full-year projection. For a correct interpretation of the data it should be noted that the financial year of Juventus does not coincide with the calendar year but covers the period July 1 – June 30, which corresponds to the football season. Economic performance is characterized by the highly seasonal nature typical of the sector, determined mainly by the calendar of sports events and the two phases of the players’ Transfer Campaign. The financial position and cash flows of the company are also affected by the seasonal nature of the income components; in addition, some revenue items are collected in a period different than the period to they refer.

The first quarter of the financial year 2013/2014 closed with a loss of €18.4 million, up €6.8 million compared to the loss of €11.6 million reported in the same period of the prior year. This performance is due to higher operating costs of €6.7 million and a limited increase in revenues of €1 million partly due to the effect of a different timing for matches (one match less in Turin), in addition to other net negative changes for €1.1 million. The latter changes refer to higher net financial expenses (€0.4 million), higher amortization of players’ rights (€0.4 million) and higher income taxes (€0.3 million).

Net financial debt at September 30, 2013 amounts to a negative €178.2 million or €17.9 million more than the negative balance of €160.3 million at June 30, 2013. This increase can principally be ascribed to higher cash flows used for investing activities (€10.9 million), operating activities (€4.9 million) and other minor changes (€2.1 million).

At September 30, 2013 shareholders’ equity is €30.3 million, a reduction from €48.6 million at June 30, 2013 owing to the loss reported for the period (-€18.4 million) and net of the change in the cash flow hedge reserve (+€0.1 million).

Significant events in the first quarter 2013/2014 and subsequently

Football season
On August 18, 2013 the First Team won the Italian Super Cup for the sixth time and on September 26, 2013 the Primavera team won the Italian Super Cup in the youth version.

Transfer Campaign 2013/2014 – first phase
The transactions concluded in the first phase of the Transfer Campaign 2013/2014 held from July 1 to September 2, 2013 raised invested capital by €38.4 million between acquisitions of €65.7 million and disposals of €27.3 million (net carrying amount of rights disposed).
The disposals generated net gains of €13.1 million.
The total net financial commitment, including capitalized accessory charges, as well as implicit financial income and expenses on deferred collections and payments came to €25 million.

Season Ticket Campaign 2013/2014
The Season Ticket Campaign for the 2013/2014 closed with the sale of all 28,000 season tickets available for net proceeds of €20.1 million, including Premium Seats and additional services compared to €19.8 million in the previous season.

The Continassa Area Project
On July 30, 2013, the approved Final Planning Agreement (PEC) on the Continassa Area Project was presented to the appropriate offices of the City of Turin.
The Area was taken over by Juventus on September 12, 2013 and the work to fence off and provide security for the area began, in addition to the activities necessary to start the works outlined in the PEC and in the associated Environmental Project. It is currently estimated that operationally the Project can be completed within 4 years.

Legends Club inauguration
At the beginning of the 2013/2014 football season, a new 320-seat stand was inaugurated called the Legends Club. The stand offers spectators very comfortable chairs, a full menu with table service and view over the playing field. The Legends Club is sold for individual matches and adds to the range of premium services offered by the Juventus Stadium.

Juventus College
On September 4, 2013 the 2013/2014 school year started at the Juventus College. From this year, the college’s second year, there will be four classes, one more than last year, and the new refectory will be open. Work is also underway to expand the facility which, from next year, will also offer a fifth class and new labs.
In September 2013, the European Club Association (ECA) recognized the J College as the best youth education and development project out of all those implemented by European Clubs and targeted to the Youth Sector, and awarded the Company the “ECA Best Achievement Award” in the “Youth Development” section.

Consob inspection
Consob resolved to impose an administrative penalty of €50,000 regarding objections raised on market disclosure, and the resolution was served on Juventus on September 19, 2013. On October 18, although believing that it has always acted correctly in terms of market disclosure, Juventus paid the penalty, and waived its right to appeal to the Court of Appeal.

New technical sponsorship
On October 24, 2013 a technical sponsorship deal was reached between Juventus and adidas International Marketing B.V. (adidas) beginning with the 2015/2016 sports season.
Adidas will become the technical sponsor for all Juventus teams for fixed consideration of €139.5 million over the six year term. The consideration does not include the value of annual technical material or Juventus performance-related incentives and bonuses.
Adidas will also manage all Juventus’ licensing and merchandising activities for fixed consideration of €6 million per year.
Furthermore Juventus may benefit from additional royalties upon exceeding a specific sales threshold.
Until June 30, 2015, and therefore for the entire current and following season (2014/2015), Juventus will continue its collaboration with Nike as the technical sponsor and licensee.

Mutu/Chelsea proceedings
On October 7, 2013 the Company was served with the order whereby the FIFA Dispute Resolution Chamber, following the hearing held on April 25, 2013, ruled that Juventus was jointly liable with player Adrian Mutu for payment to Chelsea FC plc of the damages deriving from the player’s dismissal for serious breach of contract, quantified in €17 million in addition to interest, if any.
This decision was based on earlier legal proceedings deriving from Mutu’s dismissal by Chelsea for drug use in 2005. Those proceedings obviously only involved Chelsea and Mutu, as Juventus did not contribute in any way to the player’s breach of contract and was not part of the above proceedings.
On October 29 the Company filed an appeal against FIFA’s order before the Court of Arbitration for Sport (CAS). According to the consistent case law of the CAS, the appeal suspends the enforceability of the said order.
Juventus believes that it has valid arguments to support its position and is therefore of the opinion that it is very unlikely that it will lose the case. Should CAS’s decision be unfavorable, Juventus will still have the opportunity to file an appeal with the Federal Supreme Court of Switzerland.

Commercial Register No.64236277 Legal notes | Credits