Bigger 2006 loss in store for Juventus

Italian Juventus revised its previously announced net loss upwards to EUR 36.5 million in year to 30 June 2006.

That was raised from a previous loss of EUR 21.6 million, and against a prior year loss of €3.0 million. In final results for approval by shareholders on 26 October,Juventus said the wider full-year loss takes account of loss risks and other negative effects from its relegation to Serie B.

"In preparing the results, the board has been able to examine significant changes due to the events linked to the sporting (disciplinary) procedure that is underway," the club said.

In addition to being relegated from Serie A, Juventus faces a 17 points penalty this season, though arbitration continues with the sports authorities over a possible cut in this.

Changes to preliminary results, announced in August, include loss provisions for changes to sponsorship deal leading to an increase in the risk fund of EUR 12.6 million, and in tax provisions.

In regards to the next fiscal year, Juventus said it has raised EUR 49.1 million from player sales, and invested EUR 7.8 million in new players during the first transfer window in July and August.

These player deals will contribute a EUR 35.2 million although there could be further player deals in the second phase for transfers in January and these could affect the results.

Results could not include the EUR 22 million in turnover in the year ended from playing in the European Champions League. Juventus stated that cuts have already been made in player salaries.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.