Juventus Investors Approve Share Sale to Cover Record Loss, Development

Juventus Investors Approve Share Sale to Cover Record Loss, Development

By Alex Duff - Oct 18, 2011 12:08 PM ET

Juventus shareholders agreed to raise 120 million euros ($164 million) to help cover a record loss and fund the Italian soccer team’s development.

The share sale will be completed by March 31 next year, the club said in a statement. Juventus shares have slumped 35 percent to 60 cents, the lowest in a decade, since Sept. 16 when the club announced the 95.4 million-euro loss for the year through June.

The financial loss is the worst in the history of the team, Chairman Andrea Agnelli told shareholders in Turin today, according to the team website. Recent form on the field “flooded the engine,” he said. Juventus finished seventh in Italy’s Serie A in the last two seasons.

The Agnelli family, whose Exor SpA (EXO) company controls the record 27-time Italian champion, last month agreed to pay down 72 million euros of the team debt as an advance on the share sale, the statement said.

Exor is seeking to turnaround Juventus’ finances that were also hit by its demotion for a 2006 match-fixing scandal with a new stadium inaugurated this season. The team leads Serie A after six of 38 games this season.

http://www.bloomberg.com/news/2011-10-18/juventus-investors-approve-share-sale-to-cover-record-loss-development.html

The club raise 120 million euros to pay off some of its loss. However, Juventus maybe sell about 25% of the parent company's shares to super-rich Arabs, oil company, a private bank or float the company on the Singapore Stock Exchange if shareholders sell to about 10% of the company's shares to Temasek holdings.

So what does it mean long term for Juve?

I am completely clueless when it comes to economics >.<

I thought most of the loss was because of the new stadium?

If anyone can explain it in layman's terms that's be great

jn2002dk wrote:So what does it mean long term for Juve?

I am completely clueless when it comes to economics >.<

I thought most of the loss was because of the new stadium?

If anyone can explain it in layman's terms that's be great

Agnelli said we will continue to spent. Our parent company EXOR and FIAT payed for us to not be in debt and lend us money ...but there were rumors that rich arab will buy 30% of Juve

DeviAngel wrote:

jn2002dk wrote:So what does it mean long term for Juve?

I am completely clueless when it comes to economics >.<

I thought most of the loss was because of the new stadium?

If anyone can explain it in layman's terms that's be great

Agnelli said we will continue to spent. Our parent company EXOR and FIAT payed for us to not be in debt and lend us money ...but there were rumors that rich arab will buy 30% of Juve

I hope not. Hope EXOR and FIAT keep it.