(63.77% of share capital)

The results for the first half of the financial year 2013/2014 of Juventus Football Club S.p.A. are as follows:

  Half 1 Half 1  
€ million 2013/2014 2012/2013 Change
Revenues 155.2 149.4 5.8
Operating costs 114.1 101.9 12.2
Operating income 11.9 17.3 (5.4)
Profit for the period 4.8 11.3 (6.5)
Interim data cannot be construed as representing the basis for a full-year projection. For a correct interpretation of the six-month data it should be noted that Juventus’ financial year 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 participation in football competitions in Europe, particularly the UEFA Champions League, the calendar of sports events and the two phases of the football players’ Transfer Campaign. The financial position and cash flows of the company are also affected by the seasonal nature of the economic components; in addition, some revenues items are collected in a period different from the recognition period.
€ million 12/31/2013 12/31/2013 Change
Shareholders' equity 53.5 48.6 4.9
Net financial debt 188.0 160.3 27.7

The first half of the 2013/2014 financial year closed with a profit of €4.8 million, posting a negative change of €6.5 million compared to the profit of €11.3 million registered in the same period a year earlier. This performance substantially derived from the increase in players’ wages and technical staff costs of €11.6 million, a slight increase in revenues of €5.8 million (also negatively influenced by one less home match in the 2013/2014 half year), as well as other net negative changes of €0.7 million. These net negative changes mainly included operating costs (€0.6 million), net financial expenses (€0.8 million), amortization of players' registration rights (€0.7 million) and income taxes (€0.3 million), partly offset by lower provisions and impairments (€1.7 million).

Revenues for the first half of 2013/2014, totaling €155.2 million, showed an increase of 3.9% compared to the figure of €149.4 million for the first half of 2012/2013.

Operating costs for the first half of the 2013/2014 amounted to €114.1 million and increased 12% compared to €101.9 million for the corresponding period of the prior year.

Shareholders’ equity at December 31, 2013 totaled €53.5 million, an increase compared to the balance of €48.6 million at June 30, 2013 due mainly to the profit reported for the first half (+€4.8 million).

Net financial debt at December 31, 2013 amounted to €188 million (€160.3 million at June 30, 2013). The increase in net financial debt of €27.7 million was driven by Transfer Campaign net payments (-€25.7 million), advances paid to the City of Turin and various suppliers in relation to the Continassa Project (-€4.6 million), other investments (-€4.5 million) and financial flows (-€3.7 million). These negative cash flows were partially offset by positive cash flows from operations (+€10.6 million) and other net changes (+€0.2 million).

Significant events in the first half of 2013/2014 financial year and subsequently

Football season

During the first half of the 2013/2014 financial year, the First Team played in the group stage of the UEFA Champions League, taking third place in its round. As a result, Juventus did not qualify for the round of 16 but for the knockout phase of the UEFA Europa League, the second most important European football competition.

Transfer Campaign 2013/2014 – first phase

Acquisitions and disposals

The transactions finalized in the first phase of the Transfer Campaign 2013/2014, conducted from July 1 to September 2, 2013, resulted in an increase in invested capital of €39.2 million as a result of acquisitions of €66.5 million and disposals of €27.3 million (carrying amount of disposal rights).

The net capital gains generated by the disposals totaled €13.1 million.

The total net financial commitment, distributed over five years, came to €25 million and includes capitalized auxiliary expenses as well as financial income and expenses implicit in deferred receipts and payments.

To secure the deferred payments, guarantees were issued for a total of €23.2 million, later reduced to €16.2 million after payments made during the half year.

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 €20.2 million, including Premium Seats and additional services, compared to €19.8 million in the previous season.

New technical sponsorship

An agreement was finalized on October 24, 2013 with adidas International Marketing B.V. (“adidas”) for a technical sponsorship starting from the 2015/2016 football season.

adidas will be the technical sponsor of all Juventus teams for a fixed consideration of €139.5 million for the six-year term. The consideration does not include the value of adidas products that will be annually supplied to the club or the program of performance related incentives and bonuses available to the club.

adidas will manage all Juventus’ licensing and merchandising activities for a fixed consideration of €6 million per annum.

Juventus may also benefit from additional royalty payments upon exceeding a threshold of sales.

For the current season and the 2014/2015 season, Nike will continue in its role of technical sponsor and trademark licensee.

The Continassa Area Project

On July 30, 2013, Juventus submitted the Agreed Executive Plan (PEC) pertaining to the development of the Continassa Project to the competent officials of the City of Turin.

On September 12, 2013, the preliminary works were initiated for fencing off and securing the area, as well as the initial preparatory and introductory activities for the start of the works envisaged in the PEC and the associated Environmental Plan.

As provided for in the agreement signed with the City of Turin on June 14, 2013, at the end of December Juventus paid the balance of the amount for the acquisition of the long-term lease on the area, totaling €3.3 million.

At the beginning of January 2014 Juventus granted Beni Stabili Gestioni S.p.A. – Società di Gestione del Risparmio (“BSG”) the exclusive assignment to set up a real estate investment fund for the purpose of developing the Continassa Project (“Fund”).

BSG, with assistance and cooperation from Juventus, will work over the next few months to obtain the financial resources needed by the Fund to complete the Continassa Project, both using equity from third party investors and through financial borrowing.

Furthermore, Juventus and BSG will work together to complete the administrative process (indicatively by the end of April with the approval of the PEC and the signing of the related agreement with the City of Turin) to select the designers and construction companies, as well as the managers of the businesses that will be located in the area.

Over a time frame of four years, the Continassa Project provides for the urban development and revitalization of an area of around 180,000 square meters, adjacent to the Juventus Stadium, on which Juventus has acquired a 99-year renewable long-term lease, which will be transferred and/or sold to the Fund.

Using a total Gross Floor Area of 38,000 square meters, the new Training and Media Center for the First Team will be developed, as well as the new registered office of Juventus, a hotel, a services center for people and businesses, and private residences.

Mutu/Chelsea FC proceedings

On October 7, 2013 the Company was served with the decision of FIFA’s Dispute Resolution Chamber, following the hearing held on April 25, 2013, which 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 any interest.

This decision was based on earlier legal proceedings deriving from Mutu’s dismissal by Chelsea for drug use in 2005. Those proceedings had only involved Chelsea and Mutu, as Juventus did not contribute in any way to the player’s breach of contract which led to the termination of his employment contract.

On October 29, 2013 the Company filed an appeal against FIFA’s decision 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 decision. A hearing is set to be scheduled by the arbitration board.

Juventus believes that it has valid arguments to support its position and is of the opinion that it is very unlikely that it will lose the case and has therefore made no allocation to the provision for risks and charges. Should CAS’s decision be unfavorable, Juventus will still have the opportunity to file an appeal with the Federal Supreme Court of Switzerland.

Receivable due from Finanziaria Gilardi S.p.A. and Campi di Vinovo S.p.A.

In reference to the receivables due from Finanziaria Gilardi S.p.A. and Campi di Vinovo S.p.A., totaling €6.9 million and €10.3 million, respectively, and due December 31, 2013, Finanziaria Gilardi S.p.A. proposed further deferral of the payment to Juventus given the serious crisis which has affected all economic and financial sectors, as well as the delayed completion of the development of the "Mondo Juve – Parco Commerciale” compared to the timetable.

In February 2014 Juventus, based on the above arguments and against payment by Finanziaria Gilardi S.p.A. of €2 million on December 31, 2013, granted the counterparties deferral of payment of the total remaining payable of €14.4 million according to the following due dates: €2 million by September 30, 2014, €4 million by December 31, 2015 and €8.4 million by July 31, 2016. Interest will be earned on the installments at market rates starting from January 1, 2014.

The receivables which originated in the 2007/2008 fiscal year derive from the sale to Finanziaria Gilardi S.p.A. (originally Costruzioni Generali Gilardi S.p.A.) of the investment in Campi di Vinovo S.p.A. and also the sale of the business relating to the “Mondo Juve - Parco Commerciale” project to be built on the land of Campi di Vinovo S.p.A.

The remaining receivables due from Finanziaria Gilardi S.p.A. and Campi di Vinovo S.p.A. are secured by collateral (pledge on Campi di Vinovo shares) which will decrease with the collection of the instalment payments.

Significant events subsequent to December 31, 2013

Transfer Campaign 2013/2014 – second phase

Acquisitions and disposals

The transactions finalized in the second phase of the Transfer Campaign 2013/2014 will lead to an increase in invested capital of €6.8 million. Disposals will generate net capital gains of €6.8 million.

The net total financial receipts (including capitalized auxiliary expenses as well as financial income and expenses implicit on deferred receipts and payments) will amount to €0.1 million.

The transactions finalized in the two phases of the Transfer Campaign 2013/2014 will bring an increase in invested capital of €46 million deriving from acquisitions of €73.9 million and disposals of €27.9 million (carrying amount of disposed rights).

The net capital gains generated by the disposals will amount to €19.9 million.

The total net financial commitment (including capitalized auxiliary expenses as well as financial income and expenses implicit on deferred receipts and payments) will come to €24.9 million, distributed as follows: €11.8 million in the 2013/2014 financial year, €10.4 million in the 2014/2015 financial year, €4.4 million in the 2015/2016 financial year, -€2 million in the 2016/2017 financial year and €0.3 million in the 2017/2018 financial year.

Commercial Register No.64236277 Note legali | Credits