Shock investigation by KPMG: Juve outside the parameters of FFP

The investment made to bring Cristiano Ronaldo to Turin has changed Juventus’ financial scenarios . Not only CR7: the engagements of De Ligt, Emre Can, Rabiot and Ramsey are all starting to add up (via calciomercato).

Costs have increased exponentially, and the balance with revenues has jumped. The financial statements are in the red, and the company therefore risks incurring the penalties established by the Financial Fair Play.

40 MILLION RED – This is what emerges from the survey entrusted by RMC Sport to the authoritative KPMG, financial consultancy firm, on the accounts of the 8 teams that have won in the major European championships.

Personnel costs for Juve increased to 327.8 million, which caused a loss in the financial statements, in the financial year ended 30 June 2019, of 39.9 million euro .

Operating revenues grew, reaching 463.6 million euros, an increase of 16% compared to the 2017/18 season. Revenues from which the amount of capital gains (127 million) and temporary disposals (18 million of the Higuain loan) have been excluded.

The income from TV rights (206.6 million) and the commercial sector (185.4 million) did not improve.

SHADOW OF FINANCIAL FAIR PLAY – KPMG also focuses on the ratio of wages to total revenue .

The sustainability threshold imposed by UEFA’s Financial Fair Play requires that it be below 70%. Juve is slightly above the maximum ceiling, at 71% . It is the only club among the 8 champions who is in this difficult situation. Barcelona, ​​which was also in the balance, recently reached 69%.

THE CAPITAL INCREASE – On February 19, 2019 Juve issued the so-called “Ronaldo Bond”, 175 million euros in non-convertible bonds on the markets.

At the end of November, the company started a 300 million euro capital increase, concluded with the subscription of 100% of the shares offered on 2 January, to cover the financial needs of the next twelve months and thus consolidate the company’s equity .

Juve remains in a financially worrying situation which, however, is currently considered under control.