Juventus and Manchester United Post Heavy Losses

Cristiano Ronaldo’s old and new teams both experienced a brutal year financially. 

Juventus and Manchester United posted nine-digit losses for the fiscal year ending June 30, with Juventus losing $246.6 million in Ronaldo’s final year there, and Man U losing $126.8 million due to a rough fourth quarter.

• Juventus, which did not provide quarter-specific results, saw revenue decline 16% year-over-year from $674.1 million to $565.1 million. 
• The team’s total assets dropped by $315.7 million to $1.07 billion, due primarily to a drop of $143.3 million in expected transfer money.

Man U was in the black over the first three quarters of the fiscal year but took a $148.2 million hit in Q4, compared to a $50.2 million loss in the same period last year. 

• Man U’s revenue rose to $129.3 million, up 15.3% year-over-year on the strength of a 140.4% jump in broadcast revenue to $54.9 million. The team played 10 more games in fiscal Q4 than the same period in 2020.
• An increase in the United Kingdom’s corporate tax rate from 19% to 25% weighed on United’s balance sheet. 
• This triggered both one-time and ongoing expenses that amounted to a $90.2 million tax expense in the quarter, compared to a $13.8 million credit in the prior year quarter.

The financial woes haven’t scared off investors. Last week, Ariel Investments increased its stake in Manchester United to 13.8% from 5%. In August, Juventus’ board of directors voted to raise up to $470.2 million by issuing shares.