What Did We Learn This Week?

Since the news of the entire Juventus board resigning broke earlier this week, more and more details have emerged about what led to that decision and what the future may hold for Italy’s biggest club.

As explained in this previous column, the Italian government authority responsible for regulating the Italian stock market – known as CONSOB – are investigating claims that members of the Juventus first team squad were paid off the books during the height of the Covid-19 pandemic.

Indeed, according to La Gazzetta dello Sport, 23 players who had signed agreements to reduce their salaries in order to help the club through an extremely difficult period were allegedly actually given that money “in the black.”

That would mean that the players and Juventus avoided paying tax on those sums, while the club would have also falsified their books to make it appear as if they balanced. With Juve being a publicly traded company with legal obligations to the stock market, any evidence of this would be classified as financial fraud.

Since the resignations of club President Andrea Agnelli, Vice-President Pavel Nedved, CEO Maurizio Arrivabene and other key personnel were announced, further information has been published.

Italian newspaper Il Fatto Quotidiano has claimed that 17 players were involved in these “secret” salary payments, with their report insisting that these sums totalled almost €60 million ($63.22 million).

The issue is believed to have begun back in October when the Guardia Di Finanza – Italy’s financial police – are believed to have found a document signed by Cristiano Ronaldo and Juventus promising to pay the Portugal international €19.9 million ($20.97 million) even if he left the club.

That sum was not registered in Juve’s financial statements and the Turin Public Prosecutor asked Ronaldo to clarify the situation but, according to La Stampa, he refused to do so.

Particularly shocking has been the steady stream of wiretap transcripts that have been released to the media, a common occurrence in Italy. This is because Italy – unlike the United Kingdom or USA – has no jury system, meaning the public release of such evidence cannot cause undue influence in a case.

That has included a WhatsApp message allegedly sent by former Captain Giorgio Chiellini on March 27 2020. According to La Gazzetta dello Sport, Mattia De Sciglio and Matthijs de Ligt shared the message with prosecutors which read;

“Hello everyone, as you know we are talking with Fabio [Paratici] and the president to try to help the club and all the employees in this difficult moment. The final proposal is this: we are missing four months of salary, three months paid in case we manage to finish the season, two and a half months in case we stop.

“The president has guaranteed the payment of one month’s salary on July 1 and the rest in the 20/21 season. They really thank the whole team for their sensitivity. In case of okay, tomorrow I will have a paper signed by the president where he guarantees the above.

“Due to stock market legislation, the communication that would come out is only of the waiver of the four months. You are asked NOT TO TALK IN THE INTERVIEWSEWS
about the details of this agreement.”

Juventus themselves issued another statement on November 30 which insisted that what they had done fell “within those allowed by applicable accounting principles” and that “the allegations of the Public Prosecutor’s Office do not appear to be substantiated.”

“Any sporting sanction would be completely unfounded,” it continued before ending by insisting that “Juventus FC remains convinced that it has always acted correctly and intends to assert its reasons and defend its corporate, economic and sporting interests in all forums.”

There will undoubtedly more to come on this story, and Forbes will bring you further details as they emerge.