Juventus Scandal – Italian Giants Face Points Deduction

Juventus Scandal

In relation to the “plusvalenze” Juventus scandal, Juventus was penalized 15 points on January 20 by the Italian Football Association’s disciplinary tribunal. The club dropped from third to tenth in the points table as a result of the deduction. 

A study from Covisoc given to the Italian Football Federation, which is known as “Plusvalenze,” speaks to capital gains, a contentious subject in Italian football (FIGC). 

The Federal Attorney was asked to determine whether clubs were inflating player appraisals for capital gains.

Due to the ambiguous nature of player worth, managers and clubs—including Juventus—were relieved of all allegations of capital gains in 2022. 

Juventus was penalized by the FIGC, moving them from third to tenth position, when additional evidence was discovered during a further inquiry by the Public Prosecutor’s office in Turin. The justification for the hefty punishment has yet to be disclosed.

What will happen at this court and how it will affect the club’s status are still up in the air. However, Juventus’ league standing has already been significantly impacted, which might substantially influence the squad in the future.

If Juventus is found guilty of the accusations, the consequences might be disastrous for the team. For the team, the hearing on March 27 is essential since the result will decide the direction of the case and if they face additional sanctions.

The hearing will be exciting to watch because the club has claimed its innocence.

What is Plusvalenza?

Plusvalenza, also known as capital gains, is effectively the money generated on a transfer. The main story behind the scandal is Plusvalenza.

Consider the scenario where Juventus signs a player to a five-year, €100 million deal. They would divide out the payouts evenly over 5 years to spread the cost of the registration rights over the course of his agreement.

The player’s amortized worth, calculated by dividing $100 million by five, would be €20 million annually.

Juve would therefore generate a capital gain of around €20 million on the player’s licensing rights if they later sold him for €60 million after 3 years.

Due to the implementation of UEFA’s Financial Fair Play (FFP) rules for the past ten years, the situation has become very vulnerable because capital gains directly contribute to a club’s yearly revenue.

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