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Covid-19 sees losses deepen for Juventus, Raffles named regional sponsor

Cristiano Ronaldo looks dejected after Juventus concede during their UEFA Champions League exit to Olympique Lyonnais (by Valerio Pennicino/Getty Images)

Juventus has seen its losses rise by €31.5m ($37.3m) to €71.4m for the year ending June 30, 2020, with the Italian Serie A football club laying bare the effects of Covid-19 on its financial affairs.

The club’s financial report represents the third consecutive year of losses, after a €39.9m deficit in 2019, and the Turin giant believes that at the “current state of play” another loss will be registered for 2020-21.

The Covid-19-affected 2019-20 season, which saw Juventus win the Serie A title for the ninth consecutive campaign, resulted in revenues falling from €621.4m to €573.4m. While costs also fell, from €458.5m to €414.1m, this couldn’t prevent other sizeable losses.

Concerning Covid-19, the Serie A season was suspended on March 10, with domestic competitions only resuming on June 12. Internationally, in February Juventus played the home leg of the Round of 16 of the Uefa Champions League against Olympique Lyonnais. The Champions League was then suspended and restarted on August 7, with Juventus ultimately being eliminated by its French opponent.

Juventus said that while Covid-19 restrictions meant not only that the museum and club shops could not be opened to the public for a few weeks, with a subsequent impact on merchandising revenues, closed doors matches resulted in a downturn in matchday revenues and the pro-rata refunds of standard season tickets for the 2019-20 season, as well as of tickets already sold, along with a fall in broadcast rights income.

In order to partially mitigate the economic and financial impact of the suspension of sporting activities, the club reached a wage cut agreement with first team players and then-manager Maurizio Sarri for a reduction of their 2019-20 wages that equated to the monthly salaries of March, April, May and June 2020. Juventus said the economic and financial effects of the agreement were positive for approximately €90m in the 2019-20 financial year.

However, Juventus was able to secure two major sponsorship deals in the financial year. Due to the performances achieved by the first team and the increased Juventus brand awareness at a worldwide level, in October 2019 the Italian division of Fiat Chrysler Automobiles (FCA) agreed to increase the yearly fixed Jeep sponsorship payment by €25m for the 2019-20 and 2020-21 seasons, including certain additional sponsorship rights. At the same time, Juventus and FCA agreed to start negotiations for the renewal of the sponsorship agreement.

Meanwhile, in February, Juventus reached a sponsorship agreement with financial services group Allianz for the visibility, starting from the 2019-20 financial year, on the first team training kit and some sponsorship rights related to the women’s team, as well as the extension of the stadium naming rights for seven seasons, for a total consideration of €103.1m on top of the existing agreements.

In other news, Juventus has today (Monday) signed a three-year sponsorship deal with Hong Kong-headquartered financial services group Raffles Family Office. The contract, running from 2020-21 to 2022-23, names RFO as the club’s official regional partner in Asia across five markets including Greater China and Singapore.

Juventus opened a Hong Kong office in July 2019. The partnership will see RFO and Juventus collaborate on a range of branding and marketing activations including exclusive incentives for RFO’s clients, business partners and employees. The club will aim to bring first team players to Asia in the upcoming seasons.

Federico Palomba, managing director of Juventus APAC, said: “This partnership, which is one of the very first since the establishment of our APAC branch in late 2019, truly demonstrates the significant success of our presence in the market – particularly in Greater China.

“It also demonstrates the immense value of the club’s awareness and assets and Raffles Family Office’s expansive network. We look forward to bringing the partnership to life through the development of customised activations with Raffles Family Office that speak to the ideals of its distinguished clients.”