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Juventus were handed a 15-point deduction by the FIGC yesterday as punishment for inflating transfer values and lying to financial officials in an attempt to save money.
The Italian Football Federation (FIGC) slapped Juventus with a 15-point deduction for the plusvalenza scandal yesterday. This heavy point deduction sees them drop from third place (37 points) to 10th (22 points}.
So what does this mean for Juventus as a football club? Some hours ago, Juventus were handed a punishment for inflating transfer values and lying to financial officials in an attempt to save money.
According to ESPN's Gabriel Marcotti, Juventus can still appeal the decision in an appeals court and to CAS.
Also per Juventus’ statement, the initial trial for this case cleared them of any wrongdoing, and they also argued that there are no laws on player valuations and swaps for capital gains in this case, so they did not break any laws.
It remains to be seen if Juventus will win their appeal, but in the eventuality that they do not, what could this mean for the football club?
Calciopoli
To help us predict the future, it is important to review the past.
This is not Juventus' first involvement in a scandal that earned them a heavy penalty.
Juventus were implicated in a match-fixing scandal, Calciopoli, that saw them lose the 2004/05 Serie A league title and drop to last place for the 2005/06 season, meaning they were relegated.
Following the relegation verdict, Juventus suffered a mass exodus of important players. Zlatan Ibrahimovic and Patrick Viera joined rivals Inter, Emerson and Fabio Cannavaro joined Real Madrid, while Gianluca Zambrotta and Lilian Thuram joined Barcelona.
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Juventus managed to retain Gianluigi Buffon, Pavel Nedved, and Alessandro Del Piero, which helped them win Serie B the following season and immediately return to Serie A.
The 15-point deduction currently places Juventus in 10th place, and it is improbable that they will be relegated.
However, the deduction could prove to be as costly as the relegation penalty in the 2005/06 season resulted in player loss because of the state of Juventus' finances.
The dire state of Juventus' finances
The major reason Juventus dipped their hands into the cookie jar of financial manipulation is that they have been struggling with their finances for a while.
The aftermath of the pandemic, coupled with lavish player contracts, forced them to tighten their belts, and the Plusvalenza scandal was just a measure to stay competitive amidst the financial straits.
In September 2022, Juventus announced a loss of €254 million, a record for the Old Lady.
As is also the case with Barcelona, big clubs in financial trouble anticipate the payday from European club competitions, crucially the Champions League.
Juventus have already been knocked out of this season's competition in the group stages and will now compete in the lesser-paying Europa League.
The points deduction puts them 12 points behind the top four halfway through the season, making qualifying for the Champions League difficult.
Juventus in their current state will find it difficult to navigate a season without Champions League finances, and that is what they face next season.
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Before the ruling, Juventus were already reported to have players like Dusan Vlahovic on the market. A player they signed to lead their project was to be sacrificed for viability in the future.
What this ruling suggests is that more players will enter the market from Juventus' end. And if Barcelona's case is anything to draw instances from, Juventus should not expect these players to be sold at market value, as the world is aware of their weak negotiating position.
It is also worth noting that Juventus have competed poorly this season. They were knocked out of the Champions League group stage, and they only recently caught form in the league.
January signings could have helped improve their sporting situation, but this recent development suggests that is off the cards.
Another intriguing question is whether Juventus will be able to recover from this in the same way that they did after Calciopoli.
The Calciopoli ruling saw Inter win five Scudetto titles, which culminated in the 2009/10 season when they won the treble.
Given that the run started in the 2005-06 season with the title Juventus won, which was awarded to Inter as part of Juve's Calciopoli punishment, it is safe to surmise that the run would have never happened if Juventus were not relegated.
Juventus did go on a longer, more dominant run of their own after returning to the Italian top flight, and this will be at the back of the minds of many this time.
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