The resignation of the board of directors is an opportunity for the Agnellis to rethink ties with a club that suffers chronic losses
Juventus president Andrea Agnelli and the rest of his managers resigned on Monday amid intense scrutiny of the Italian soccer club’s accounts. For the main investor, Exor, controlled by the Agnellis, it is an opportunity to rethink his longstanding ties to the team, which suffers chronic losses.
The Turin public prosecutor’s office and market regulator Consob are questioning the way players’ salaries are accounted for. So the club will redo its results from recent years. The juve it says the accounting changes will hardly affect its cash flow and net debt. But the drastic departure of Agnelli, a close relative of Exor president John Elkann and promoter of the failed Super League, makes an already questionable investment even worse.
With 36 leagues to its credit, it is one of the most successful teams in the country. But his victories have not been reflected in the financial statements. The club, linked to the Agnelli since 1923, has been in losses since at least 2018, and has needed repeated capital increases. The Exor holding company, which controls the club through a 64% stake, has splurged some 450 million in four years to prop it up, according to Equita analysts. And a new injection of capital may still be necessary.
The blow to the Agnelli’s reputation belies the small size of the Juve. The listed team, with a value of 700 million, represented at the end of 2021 barely 2% of the value of Exor’s net assets, of 31,000 million. Despite its sentimental value, cutting ties may be the best option. Soccer clubs are in high demand, and the sale of Chelsea has sent prospective owners into a frenzy. Despite its problems, the juve he could reach the same multiple that venture capitalist RedBird recently offered for Milan. At 4.6 times its revenue forecast for this year, 494 million, it could reach 2,300 million, including debt.
Potential suitors will likely stay on the sidelines while the legal troubles last. But in the meantime, it makes sense to come up with an exit plan.
