Juventus: The Price of Greed
How a Club's Quest for Profit Uncovered a Systemic rot in Italian Football
Juventus, one of the most successful and storied clubs in Italian football, have been dealt a severe blow following an investigation into their transfer dealings. The Bianconeri, who have maintained their innocence and intend to appeal the decision, were found guilty of manipulating their financial records by inflating transfer fees. As a result, they have been hit with a 15-point deduction by Italy’s court of appeal.
This penalty, handed down on Friday, has sent shockwaves throughout the Italian football community and raised eyebrows globally. Prior to the ruling, Juventus sat comfortably in third place in the Serie A table. However, the deduction drops them down to 10th, putting their chances of qualifying for lucrative European competitions in serious jeopardy.
In addition to the point deduction, the court also imposed bans on 11 past and present Juventus directors from holding positions in Italian football. This includes former president Andrea Agnelli, who has been banned for two years, and former sporting director Fabio Paratici, now with Tottenham, who received a 30-month ban. This marks a significant blow to the club and its leadership, as they look to move forward and regain their footing.
What Actually Happened?
In 2021, Juventus announced that they were being investigated by Italy’s financial regulator, CONSOB, over their revenue from players’ registration rights. Another Italian watchdog, COVISOC, had also passed a report to the Italian football federation (FIGC) that flagged 62 transfers from 2019-2021 for further examination.
In April 2022, Juventus, along with 10 other teams including current league leaders Napoli, were cleared of any wrongdoing. Former Juventus President Andrea Agnelli and Sporting Director Fabio Paratici were among 59 individuals also cleared of charges. However, a parallel investigation called Prisma, launched by the public prosecutor’s office in Turin, continued to look into allegations of false accounting, false financial statements and market manipulation.
In October, the police force in charge of investigating financial affairs in Italy, the Guardia di Finanza, carried out a search and seize operation at Juventus’ training grounds and offices. 16 people, including Agnelli, then-vice president Pavel Nedved and Paratici, were placed under investigation. The club denied any wrongdoings but investigators found discrepancies in their books.
A motion from the FIGC’s federal prosecutor, Giuseppe Chine, to re-open the case was initially rejected but new evidence from the Prisma civil case prompted Chine to file another motion for the sporting case to be heard again. In November, the entire Juventus board, including President Agnelli, resigned and the FIGC case was reopened the following month.
On January 20, the ruling came and the penalty was even greater than the 9-point punishment requested by the prosecutor, Juventus have now been deducted 15 points.
Serie A In Trouble?
Juventus’ points deduction is a blow not just for the club itself, but for the entire league of Serie A. The league is already struggling to make up for the vast difference in revenue and competitiveness between itself and the powerhouse that is the Premier League.
The reputation of Serie A as a dominant force in European football was already on the decline in 2006, when the Calciopoli scandal, which exposed the corrupt use of power and influence, resulted in Juventus' first-ever relegation and punishments for other clubs, such as AC Milan, with points deductions.
The scandal further damaged the league's credibility as fans became disillusioned and the experience of attending games in crumbling stadiums, coupled with the threat of fan violence, made it unappealing.
Since then, the league has not seen a Champions League winner and the glory days of 2010-2018, where Juventus served as a shining example, building a new stadium, fostering a winning culture and attracting star player like Cristiano Ronaldo, seemed to be distant memory.
The COVID-19 pandemic has only added to the league's woes, as the current TV deal is worth significantly less than its predecessor, and there is a growing sense of uncertainty about the value of the next one. A league's strength is measured by the success of its biggest clubs, and with Juventus' recent fall from grace, it is clear that the future of Serie A is in jeopardy.
Even More Bad News…
Brand new reports have emerged that the club signed an agreement with players stating that 3 out of the 4 months of renounced wages (due to the COVID-19 pandemic in early 2020) would be paid off balance sheet, spread over time. The club's captain, Chiellini, allegedly instructed the team not to share this detail with the media, and a WhatsApp message was acquired as evidence.
This revelation could lead to severe sanctions for the club, including further point deductions and hefty fines, ranging from 1 to 3 times the amount in question. The deferred wages of star player Cristiano Ronaldo alone are worth €19.6m. The club could also face automatic relegation and the revocation of titles, such as the scudetto of 2019-20.
Adding to the woes, Juventus is a listed company, and off-balance sheet liabilities such as deferred wages are a big no-no. Former president Agnelli and several members of the board and directors are being investigated for this as well. The club's reputation, once synonymous with success and dominance, now hangs in the balance as the ramifications of their actions come to light. The Juventus scandal serves as a cautionary tale for all clubs, as the allure of financial gain can lead to disastrous consequences.
The 23 players listed in the report:
2019/20:
Rodrigo Bentancur: Tottenham Hotspur
Federico Bernardeschi: Toronto FC
Leonardo Bonucci: Juventus
Gianluigi Buffon: Parma
Giorgio Chiellini: Los Angeles FC
Douglas Costa: LA Galaxy
Juan Cuadrado: Juventus
Danilo: Juventus
Matthijs De Ligt: Bayern Munich
Mattias De Sciglio: Juventus
Merih Demiral: Atalanta
Paulo Dybala: AS Roma
Gonzalo Higuaín: Inter Miami
Sami Khedira: Retired
Blaise Matuidi: Retired
Miralem Pjanić: Sharjah
Adrien Rabiot: Juventus
Aaron Ramsey: Nice
Cristiano Ronaldo: Al-Nassr
Daniele Rugani: Juventus
Alex Sandro: Juventus
Maurizio Sarri: Lazio
Wojciech Szczęsny: Juventus
The 17 other players listed:
2020/21:
Rodrigo Bentancur: Tottenham Hotspur
Federico Bernardeschi: Toronto FC
Leonardo Bonucci: Juventus
Federico Chiesa: Juventus
Georgio Chiellini: Los Angeles FC
Douglas Costa: LA Galaxy
Juan Cuadrado: Juventus
Danilo: Juventus
Merih Demiral: Atalanta
Paulo Dybala: AS Roma
Dejan Kulusevski: Tottenham Hotspur
Arthur Melo: Juventus (currently on loan at Liverpool)
Weston McKennie: Juventus
Adrien Rabiot: Juventus
Aaron Ramsey: Nice
Cristiano Ronaldo: Al-Nassr
Wojciech Szczęsny: Juventus
Explain Like I’m 5 Years Old
Juventus, a famous soccer team, did something wrong with the money they spent on new players. They made it look like they were getting more money than they really were, so they could make more profit. But this is against the rules set by UEFA, which is the organization that runs soccer in Europe. Now they have to lose some points in their league and some important people from the team can't work in soccer for a while. This is a problem for the whole league and not just Juventus because it makes the league look bad.
This issue of greed among football owners is an important one, but could always benefit from being placed in a broader social analysis of corporate football these days. This multipart article on the European Super League that has just started appearing in The TransAtlantic might be of interest. With Juventus being one of the clubs that took part in the ESL attempted coup back in '21, it might shed some light too on what the club is playing at big picture. May check it out, if you get a mo...
https://thetransatlantic.substack.com/p/politics-of-the-european-super-league
"Juventus’ points deduction is a blow not just for the club itself, but for the entire league of Serie A. "
MLS is on an upward trajectory; and while this story represents bad news for Italian soccer, it represents a valuable opportunity for US soccer. With the diminishment of Serie A (and other European leagues), hopefully the top brass at MLS can formulate a way to take advantage.