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Financial scandal leaves Juventus deeply impacted on and off the field

Turin’s team lost 15 points in the Italian Championship and still saw its shares plummet by more than 70% on the Euronext stock exchange

31 jan
2023
– 20h22

(updated at 8:41 pm)




Juventus is going through a delicate moment in the current season

Photo: ANSA / Ansa – Brazil

The off-field Juventus resurfaced in the sports news. Due to tax fraud in the hiring of players, the Italian team lost 15 points in the Italian Championship and had managers and former managers suspended, including former president Andrea Agnelli and vice president Pavel Nedved, who resigned in December of the year. past. The Italian club will appeal the decision.

Before being sanctioned by the Federal Court of Appeal of the Italian Football Federation (FIGC), Juventus was acquitted, along with other clubs, in April 2022, in the investigation of 62 suspicious transfers carried out between 2018 and 2021. being targeted in parallel operations, with information shared with the Italian Public Ministry, prosecutors found evidence of false accounting, market manipulation and absence of transfer invoices between 2019 and 2021.

Juventus is a publicly traded company on the Euronext stock exchange. The club tried to deceive the financial market on some occasions, such as the supposed agreement to reduce the salaries of athletes and technical staff at the beginning of the pandemic, in March 2020, but which was only valid for one month. After the gains in signings and discrepancies in finances, the greatest Italian champion has several challenges ahead.

Jorge Braga, the manager who led the restructuring of Botafogo and the search for a new investor, highlights the main impacts suffered by Juventus due to the financial scandals in recent days. “This sent the club’s shares, which are listed on the Italian stock exchange, plummeting. Since the beginning of the investigations, the market value of the club-company has dropped by more than 70%. Finally, several players were suspended and managers received individual sentences, including imprisonment and fines,” Braga said.

Under new management for the next three years, now led by accountant Gianluca Ferrero, Juventus are keeping an eye on commercial issues. According to the Football Money League 2023 report, by the Deloitte consultancy, Juventus was the 11th football club in the world with the highest revenue (400.6 million euros), although it is the first among Italian teams. However, the current number indicates a decrease of 8% in the team’s revenues compared to 2021, when it earned 433.1 million euros (R$ 2.4 billion). This was also the first time that Juventus were outside the top 10 of the report.

“Companies must carry out a thorough analysis before deciding to associate with a football team. The idea is to benefit from the attributes. We cannot judge the history of Juventus by a certain moment, but by its history and representation in Italian football and world”, said Fábio Wolff, specialist in sports marketing and managing partner of Wolff Sports.

In addition to the drop in revenue, the team also collected performances below expectations in competitions. The Italian club came from nine titles after Inter Milan broke the hegemony, in 2021. In the Champions League, even with the presence of Cristiano Ronaldo, the team suffered eliminations in the round of 16 to Villarreal, Porto and Lyon.

For Renê Salviano, specialist in sports marketing and big business, who worked for Cruzeiro as director of the commercial department, all negative news, such as the case of Juventus, for example, generates a direct and automatic impact on the retention and prospecting of sponsoring brands.

“I remember well and felt firsthand the moment of the biggest crisis in Cruzeiro’s history, and as manager of the club’s marketing and business areas, I had to work on both fronts simultaneously so as not to lose the sponsorships that were there and still look for new brands . In the following two years, in 2019 and 2020, even with the crisis and pandemic in place, we managed not to miss a single mark and still break two consecutive revenue records. Nothing beats the sweat of work with transparency and a close and true relationship with the brands,” said Rene.

The executive also emphasizes the importance of professionals, who take care of such important sectors of the institutions, working to prevent these turbulences that occur in the sports environment. “In football, we deal with passions, and for crises that are not foreseen, acting with transparency and proximity to the brands are fundamental measures; nothing beats professionalism and truth in this working relationship.”

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