The soccer scandal engulfing Juventus could devastate the Turin club's finances and even drive it into bankruptcy, analysts said on Monday. The biggest risk for the 'old lady' of Italian soccer is relegation to the Serie B second division - an option open to sports authorities if allegations of match-fixing are shown to be true.
The result would be lower revenues from ticket sales and advertising deals, less income from television rights and a probable raft of lawsuits demanding compensation.
In addition, Juventus shares would plummet on the Milan stock market.
"It would be an economic disaster," said Victor Uckmar, a professor of financial science and a former head of Italy's financial watchdog for soccer clubs.
A little under 30% of Juventus's share capital is on the stock market, while the Agnelli family holds a controlling 62% stake through its IFIL financial holding company. "If they didn't inject some more capital, I have the impression that the club would be missing some funds. The sum
of debts plus lawsuits could absorb the club's assets and so bankruptcy might be on the cards," Uckmar said.
He noted that he was unfamiliar with the current state of Juventus accounts so his remarks were not a definitive judgment.
Experts noted that for Juventus to be taken off the stock market, a request to that effect would have to come from the club itself. Clearly it would have serious financial repercussions. Juventus's retail shareholders were already up in arms on Monday. A group of them have already decided to form a committee, which will claim civil damages in any trials involving club executives.
"Not only have we been ridiculed in Italy and the world, but now our shares are diving on the bourse," said Diego Volpe Pasini, a Milan businessmen and Juve shareholder. Juventus shares were suspended on Monday. They dropped by almost 15% over Thursday and Friday.
