European footballers wail at the slightest collision on the pitch. Football clubs such as Juventus are not faking their financial injuries. Milan-listed Juventus announced plans late on Wednesday to raise up to €400m equity later this year to cover shortfalls. The new Serie A season begins in August. Injury time will drag on after that.
The pandemic has been painful for football. But Juventus, famous for its striped bianconeri kit, suffered years of negative operating cash flow before that. The club needs more equity. The planned fundraising would follow a €300m rights issue at the end of 2019.
Top shareholders Exor and UK fund managers Lindsell Train will have to stump up. In the 12 months to December, net debt exceeded ebitda by 6.5 times. More than half of the cash raised last time went to debt repayment.