-€400M isn’t to cover COVID losses. It’s to replace the €300M from 2019 which was burned up by Covid. Those funds were to be used as part of a 5 year plan (2019-2024) to fund a growth strategy.
-The total expected impact from covid is €320M from 2019-2022, so in theory this injection should provide for €380M in funds to be invested into the growth project. This is enough to pay off all of Juventus’ net debt (€350M)…And it’s going to be used to grow the club not pay off their debt because Juventus usually maintains debt around those levels.
-Ronaldo leaving a year early for a transfer fee in the icing on the cake. The company would expense €90M (€60M cash from his gross wages + €30M in amortization) related to Ronaldo. That essentially disappears, lowering Juve’s cost base by €90M
-Juve’s wage bill is about €310M right now. Ronaldo was being paid €60M…that is considerable relief. Wage bill drops to €250M. Revenues will also recover somewhat this year as people are allowed back into Stadiums.
- the key is that Ronaldo didn’t provide Juventus with growth decree benefits. By electing to have his foreign income at $100k, his salary couldn’t be taxed at the lower level in conjunction with the growth decree (where 50% of income is taxable). The result? €60m in gross wages yielded €35M net. If Juve replace him with a foreign star(s), they would be able to pay €47M in net wages out of the same €60M gross.
The result: my belief is by year end, we’ll be swimming in cash. We can totally afford Haaland. Don’t think small because remember that original €300M in 2019 was to buy the next Ronaldo. Juve will try for Haaland. Perhaps they fail. But I promise they try.