Juventus FC: A Case Study on Overcoming Financial Crisis Post COVID

This case study analyzes the financial challenges faced by Juventus FC due to the COVID-19 pandemic. The pandemic led to match cancellations, closure of shops and museums, and a significant decline in revenue, resulting in financial losses and difficulties in repaying employees and refunding tickets. The study explores the problem statement, which focuses on the impact of the pandemic on Juventus's financial stability, and proposes solutions such as financial planning and management, compliance with COVID-19 regulations, and the adoption of digital transformation strategies. The analysis incorporates a literature review to support the findings and recommendations, highlighting the importance of adapting to the digital age to attract audiences, increase online revenue, and improve employee satisfaction. The proposed solutions aim to mitigate the financial crisis and ensure the long-term sustainability of Juventus FC.

CASE STUDY ANALYSIS

EXECUTIVE SUMMARY
Along with the persistence of covid pandemic every sector has been affected including the
sport sector too. This has led to raise the issue for Juventus in relation with financial crises and
conduction of event and games. With the persistence of this situation it has become important
that certain steps need to be taken so that the Juventus will sustain. Thus, an aspect of digital
advancement of digitalization has been adopted so that the matches of the Juventus will be avail
live to the audience and Juventus can meet the issue of financial crises and covid pandemic. Thus
a detailed research had been conducted with the aim of justification of problem statement with
the concerned solution wherein the issue of pandemic had been discussed along with financial
crises in the context of Juventus. The literature approach had been adopted so that a dcetailed
analysis of the problem would be performed. Under analysis a detailed study of problem of
Juventus is performed that is further supported with literature review followed with finding and
recommendation. This research made a highlight towards the issue along with the proposed
solution or recommendation so that the Juventus can deal with the issues along with
identification of best solution.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
CASE STUDY OF JUVENTUS FC................................................................................................2
1. Introduction to case study........................................................................................................2
2. Case brief.................................................................................................................................2
3. Problem statement and plan for analysis.................................................................................3
4. Analysis and finding................................................................................................................4
5. Proposed solution to problem..................................................................................................6
REFERENCES................................................................................................................................8
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CASE STUDY OF JUVENTUS FC
1. Introduction to case study
While taking initiative to run and manage business operations within specific industry, there
are different types of challenges a company faced, that put direct impact on their performance
and productivity level in negative manner. As the current assignment is based on a specific
company case study and that is Juventus FC, that faced the worst situation in the recent time as it
face challenge due to pandemic, which lead to decrease customer base and profitability of
company, which is not suitable to its rapid growth in the today's competitive business
environment. From give case study, it has been determined that organization is facing issue in
the context of customer satisfaction management as the pandemic has been affected negatively.
The spread of new infection among people, driven the attention of individual customer toward
taking steps back to their home, instead of visiting an area where foot ball match is organized.
COVID-19 is one of those external factors that in the recent time has affected each company
whether it is small or large, as it lead to decrease the performance level of companies.
The aim of this research is to specify problem statement that will determine in case and
plan that help to overcome the situation. The objective to this study is to justify and evaluate the
concepts, models, and theories that apply in give case study context. Furthermore, the report will
clarify current positions facing Juventus FC, including applying principles & practices of each
concept, theory and model. Furthermore, the current assignment will explain proposed solution
to determine issue that affect current organizational performance and practice, in negative
manner that lead to create more complications. The study will shed light on problem statement
and plan of analysis in term of relevant literature that encompass argument based on current
topic as the impact on pandemic on chosen firm.
2. Case brief
Each factor in the corporate world affect an organization performance and approaches
that it may take into their consideration. In case of Juventus FC, COVID-19 affected firm
position and create complex situation for it to survive in the market, where it may had
established its venture in appropriate manner. JUVENTUS football club is known as Juve which
has been facing the worst time, because of above stated factor. It may deal with varied issues that
create because of pandemic. The major issue that has been faced by the Juventus is related with
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the financial crises under which the company face the financial loss and issue. Here the revenue
of the Juventus has been declined by 48.1 million. This has make the situation of company to be
complex in terms of not being able to repay the salary to employees and refunding of money for
the sold tickets. This has emerge the financial crises for the Juventus. The overall situation of
company drive the attention of individual stakeholder toward conducting appropriate action,
which is quite essential to deal with current factor. Just because of pandemic, firm may face issue
to refund for tickets to customers or football lovers who may already purchase the same for
purpose of watching their favourite game. During the period of 2019- 2020, organization
experience the worst environment and circumstances as it loose millions pounds in revenue,
which make venture sustainability more complicated to maintain in appropriate manner, for
which management may work harder than ever and always. The overall situation specifies the
requirement of essential and beneficial approaches implication. However as per the future
prospect the Juventus is also planning to adopt the digitalization so that it can meet the issue and
avail live experience to its audience so that along with dealing with situation of pandemic it can
also meet financial crises.
3. Problem statement and plan for analysis
As per the case study the problem which was being analysed is related with the pandemic
that has stopped the conduction of matches. This is because with the prevalence of pandemic the
conduction of football matches has been stopped that has leads to bring a negative impact
towards the matches performance. With the persistence of the restriction Juventus’s shops and
museum has been closed for few weeks. With such closure the match day revenue has also wiped
out that has force the club to make refund of the ticket which was sold already. With the
persistence of such issue the Juventus experienced 48.1 million in revenue i.e. from 621.5
million to 573.4 million. The revenue stream fell which shows that the major issue and problem
faced by Juventus is associated with pandemic that has further raise the issue of financial issue.
With the prevalence of the concerned issue the company is not being able to make repayment
towards its workers as well as meeting its expenses. The biggest problem arises when the
Juventus need to make repayment of money on the sold tickets.
In order to solve the concerned issue, the action plan plays an important role in terms of
making an identification of the strategies that would play an important role towards the
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minimisation and resolving of issue. As the issue is related with the pandemic under which the
company face the financial crises so for dealing with the concerned issue making of action plan
would lead to play an important role in terms of determination of strategies so that the issue
would be resolved. For the concerned issue the Juventus would take the step of financial
planning and management under which with the management of funds the company can deal
with the financial crises and make wise decision towards the repayment of employees as well as
to those who have buy the tickets. In the same way with respect to dealing with the issue of covid
the Juventus can make compliance of the rules and regulation of the covid pandemic as issued by
the government so that along with dealing with the situation the company can also minimise the
impact. This may include the conduction of event as per government norms with the use of
technology and digital technique so that the issue will be meet and company will not face the
loss (Rapoport, Tomilova and Engin, 2020).
In the same way with the adoption of the concept of digital transformation and integration
in the operation the Juventus can deal with the issue. With the concerned technique and step
more audience will be attracted towards the company that will lead to raise the online revenue
and thus assist the company in dealing with the situation (Budovich, 2021). The technique and
strategy will also lead to assist the company in attaching its employees i.e. may reduce the
employee’s turnover along with raising their happiness. The shift towards the digital age is
counted as one of the best strategy and action which can be taken with respect to dealing with the
issue and problem.
Literature Review
According to the Andrea Agnelli, financial position shows how the firm is working in the
business. This considers various factors such as sales, pricing, cash flow, return on investment
and various others. This will show the position of the team in the market as well as around the
world. If the financial position is not good for a team it will affect the team players in a major
way. Financial position will be determined by the balance sheet and the profit earned by the firm.
If somehow team is not able to generate the profit then they will not be able to retain their
players. According to the La Storia della Federazione, there are various theories which will
analyses the financial position of a business such as asset management, cash ratio and various
others. Fundamental analysis helps the team to assess the value of their stock in the market. This
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is beneficial because it will tell them the view point of their stakeholders. If the company is not
able to perform then too the investors expect that they will perform then it is a good point for the
team which will show them their image in the investors view.
. According to the Juventus Business Model, the financial position of firm is affected by
various external factors one of them is environmental factors. The environmental factor may
affect the team in either positive or negative way. This will make the organization understand
how the environmental factors will affect the financial position. When an organization faces
factors which are affecting the working of the business it will lead to reduction in the profit for
the business. The position of the team will be affected when they will not be able to generate
revenue which will eventually reduce the profit. Covid-19 is a major environmental factor which
affected the working of the business in a major way as many organizations are facing losses.
This is because they are not able to generate revenue which supports their functioning. If the
functioning is not supported then it is not good for any team as players will start to leave the
team as they will also don’t have any source of income. According to the Longhi, L, case study
helps to understand various factors of a team and the issue they are facing. For the purpose of the
case study secondary research is more suitable as it will help to support the factors mentioned in
the case study. The factors which affect the team mentioned in case study will be studied in
detail when secondary research is conducted. It will help the reader to know more about the
factors which will affect the team and method which helped to analyse those factors. A reader
will get in-depth knowledge on the basis of the case study as well as secondary research, as they
will be able to get access to various sources which contains valid information related to the team
or the issue they are facing.
4. Analysis and finding
Current position of the company
The organization is facing the various types of the problems that is related to the
problems of financial and various other aspects that has shown the decrease in the growth and
market capitalization of the company (Wong and et.al., 2020).
Lose of customer trust
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The company has seen that the customers are losing its trust in the organization and
making their contribution less in purchasing the tickets of the show (Jiang and et.al., 2021). The
customers are finding it tough for them to trust the organization and purchase the ticket of the
matches that led to the huge loses in the match day revenue making the organization to lose its
one of the main income streams. The company is now trying its best to prevent the risk of the
disease spread and making the best measures that is possible so that the customers can trust the
organization again and feel free to watch the matches again.
Closure of shops and museum
The company is facing the problem that the shops and museums of the company is closed
because of the pandemic that is leading to the downfall in the revenue generation of the company
(Link and Anzer, 2022). The company has faced a huge lose because of this as the tickets of the
match were already sold and the organization was required to refund the ticket money and the
revenue that was collected by selling the tickets back to the customers. The company is facing
the current situation of the financial loses that led the revenues of the company from 621.5
million euros to 573.4 million euros which is a huge downfall of 48.1 million euros making the
Juventus to lose the income streams and the market capital if the company. The match day
revenues of the organization went down from 30% and the revenues that is collected from
broadcasting reduced by 40 million euros (Blume, 2022).
Financial loses and reduction in profits
Based on the case study the company has seen the various types of financial loses that led
to the various types of the negative positions that the company is currently facing.
 Ticket sales- The sales of the tickets of the company has been reduced from 70.4 million
euros to 49.2 million euros. The reduction in the sales of the tickets has shown that the
covid-19 pandemic has made a huge impact on the company and its reputation as the
audiences has lost confidence in visiting the stadiums where the crowd will be presented
and the risk of the disease spread can increase (Pillay and Barnes, 2020).
 Television and media revenue- The Juventus has seen that the revenue that has been
getting generated from the television and media has been reduced in a huge ratio in 2019
the company made the revenue of 206.6 million euros and in the 2020 the organization
has made only 166.4 million euros which has made the company to face the current loses
(Drewes, Daumann and Follert, 2021).
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 Revenue from sponsorships- The position of the company has shown that in 2019 the
organization has lost its various sponsors and advertisers. The company has seen that
their sponsors are not interested to invest more in the company and the advertisements.
However, the revenue from the sponsorship and advertisement in the 2020 the company
has been gaining its sponsors back and making the revenue from the sponsorship and the
advertisements. The company has made 129.6 million euros in the 2020 which explains
that the Juventus are growing its business back with more effectiveness (Bandyopadhyay,
2021).
 Sales of product and license- The company has seen that the sales of their products are
decreasing in the 2020. This explains that the current position of the company and its
product driven business is not good as the shops were closed in the pandemic and the
people were afraid to visit the stores and purchase the products of the company (Reade
and Singleton, 2021). This has shown that the company is currently facing the huge loses
in their sales of their products. The financial reports of the company show that in 2019
the revenue from sales of the products and licensing was 44.03 million euros which was
reduced to 31.7 million euros in 2020.
 Other revenues- The case study has explained that the company has been facing the loses
in their other revenue generating streams which made the organization to face the
reduction in their income that was earned from the other streams the other streams of the
income is also affected as the company has shown the revenue generation of 34.1 million
euros in 2019 which reduced to 24.5 in 2020. This has shown that the current position of
the company is not very good and the company is trying its best to perform and gain back
the old performance of the company (Buehler and Pucher, 2021).
5. Proposed solution to problem
Ideas to the problems and issues
There can be various solutions that can be given to overcome the problems of the case
study. The solutions are based on the situations and the conditions that has been explained in the
case study. The solutions are effective enough that it can help the organization in achieving back
the performance in the business.
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 Increasing the security measures- The Juventus can increase the measures of security in
their stadiums and the stores so that customers can trust and have confidence that the
organization is keeping the measures of security in mind.
 Increasing the awareness of the measures of security- The organization is required to
increase the awareness in their customers that the company is making their best efforts
for the reduction of the spread of the disease. This can be done by advertising about the
safety parameters that the company is following.
 Sanitizing the store and stadiums- The company is required to sanitize the stadiums and
the stores of the company on a regular basis so that the company can reduce the risk of
disease spread as there will be a huge amount of crowd in the stadium that is visiting to
watch the match.
 Including new players- The Juventus is required to bring new and famous players so that
it can attract the viewers and increase the number of the ticket sales making the
organization to earn back the financial position and stability.
 Increasing social distancing in the stores- The organization is required to increase the
implementation of the social distancing in their stores. This can increase the number of
visitors to the store and will be able to increase the revenue generation by the sales of the
products of the company.
A best fit solution from the above options
The best fit solution that can be chosen from the above options is that the company is
required to sanitize the stores and stadiums. The Juventus is required to sanitize its stores and
stadiums on a regular basis before and after the visit of the audience and the match. This can help
the organization in reducing the risk of the disease spread from the stores and the stadiums that
can help the company in achieving back the trust of the customers. The company will be able to
provide the customers with the improved and better quality of services in the stores and stadiums
by providing them with a safe and secure environment.
Recommendations:
 As the major issue faced by Juventus is related with the pandemic so it can be
recommended that the company need to adopt the practice of digitalization. Digitalization
is the process under which there is a use of digital technology (Sestino and et.al., 2020).
In case of Juventus with the use of digital technology, the Juventus can conduct the
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online event and make it live which will provide the same experience to its audience.
This means with this technique it can telecast and avail the live experience to its audience
and thus easily deal with the problem of repayment of money to its customers.
 In order to deal with the issue of financial crises it can be recommended that Juventus can
adopt the practice of financial management so that effective use of funds can be ensured
with the adequate financial management. This will lead to ensure smooth flow of funds
along with repayment of its debts
 As per the changing trend an adoption of advanced technology is also recommended so
that Juventus can compete with the changes along with compiling with the covid
compliances. This means with the mode of digital technology the company can deal with
the issue of closing of business because with the digital mode it can easily conduct the
match and live it for audience.
On the basis of the action plan
There can be various decisions that can be made on the basis of the action plan that the
organization is required to focus more on the digitalization of its events so that the interruptions
in the events of the company can be decreased. This can help the company in making the events
more relentless as the risk of disease spread will be decreased.
Limitations of the study
The limitation of the study is that there was not enough time and financial resources for
the organization that it can perform again such big events. It is because in the times of the
pandemic the organization faced by the organization is that the streams of the income have
shown a reduction and the company was not left with many streams of income generation.
Scope for further research
The scope for further research is that the pandemic is not over yet and the organization is
still required to be dependent on the digitalization and broadcasting its events digitally to the
viewers.
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REFERENCES
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December
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Andrea Agnelli’s Speech to Shareholders. Juventus, 24 October 2019.
Bandyopadhyay, K., 2021. Introduction: COVID-19 and the soccer world. Soccer &
Society. 22(1-2). pp.1-7.
Blume, A.W., 2022. Colonialism, COVID-19, and Education. In Colonialism and the COVID-19
Pandemic (pp. 87-101). Springer, Cham.
Budovich, L.S., 2021. Business management of the sport industry by considering the
digitalization.
Buehler, R. and Pucher, J., 2021. COVID-19 impacts on cycling, 2019–2020. Transport
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Conn, D. “Juventus Chairman Andrea Agnelli: My Project to Reshape European Football.”
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Drewes, M., Daumann, F. and Follert, F., 2021. Exploring the sports economic impact of
COVID-19 on professional soccer. Soccer & Society. 22(1-2). pp.125-137.
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https://sport.sky.it/calcio/2013/12/14/
verso_juventus_sassuolo_diverse_scelte_stadio_di_proprieta
https://www.juventus.com/en/news/articles/shareholders-meeting-president-andrea-agnelli-
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