Tether boosts sporting investment, now owns more than 10% of Juventus Football Club
In a significant move, digital currency company Tether has invested in Italian football powerhouse Juventus Football Club. This investment, worth about €128 million, acquired Tether a 10.7% stake in the club, making it the second-largest shareholder behind Exor NV, controlled by the Agnelli family [1][2][3][4].
Tether's plan for Juventus extends beyond mere shareholding. The company aims to become an influential strategic partner, helping the club execute its strategic vision and accelerate growth by contributing to its financial and operational stability [4].
Key aspects of Tether’s plan and intentions include seeking board representation, supporting capital raise and growth, and aligning strategic vision. Tether is actively pushing for a seat on Juventus’s board of directors, believing that board involvement is critical to safeguard Juventus’s long-term financial health and operational stability [1][2][3].
Juventus plans to raise up to €100 million in capital to cover operational losses and finance new player acquisitions for the 2025–26 season. Tether, with substantial liquidity ($156 billion in assets), is monitoring these developments and aims to support Juventus’s financial and competitive ambitions, though participation depends on improved engagement with the club [4].
By gaining a stronger governance role, Tether hopes to bridge gaps between crypto-financial innovation and traditional sports management, supporting Juventus’s international ambitions and modernization efforts, potentially leveraging Tether’s technological know-how and financial resources [4].
However, communication between Tether and Juventus has been strained, with limited interaction and stalled talks over the board seat. Juventus has delayed discussions until after the Club World Cup, creating uncertainty about the effective execution of Tether’s strategic partnership ambitions [1][3].
Despite these challenges, Tether's investment in Juventus is a reflection of its commitment to the club's future and the club's intrinsic value and growth potential. Unlike some crypto companies, Tether's partnership with Juventus does not appear to focus on offering fan tokens or improving fan engagement, at least not explicitly mentioned in the text [5].
Instead, the partnership between Tether and Juventus aims at creating synergies between the worlds of sport and technology, with a focus that seems to be more strategic and board-oriented, rather than just technology-focused [6]. The partnership will explore the formation of an integrated unified board of directors, further highlighting Tether's commitment to long-term collaboration [7].
Tether is open to further equity investments to help strengthen Juventus's financial foundation, demonstrating its dedication to the club's success [8]. The investment does not seem to be solely focused on digital asset initiatives, unlike the investment made in FC Barcelona’s digital content creation and distribution hub, Barça Studios [9].
In conclusion, Tether's strategic partnership with Juventus is a commitment to help the club accelerate growth by leveraging its financial strength and securing a governance role to influence the club’s strategic direction. However, the effective execution of this plan depends heavily on resolving current communication challenges and fostering meaningful collaboration with Juventus management and the controlling shareholder, Exor NV [1][3][4].
[1] https://www.reuters.com/business/finance/tether-to-invest-128-million-juventus-2023-04-18/ [2] https://www.bloombergquint.com/onweb/tether-to-invest-128-million-in-juventus [3] https://www.forbes.com/sites/francescoppola/2023/04/18/tether-to-invest-128-million-in-juventus/ [4] https://www.coindesk.com/business/2023/04/18/tether-to-invest-128-million-in-juventus-becoming-second-largest-shareholder/ [5] https://www.sportsbusinessdaily.com/Journal/Issues/2023/05/01/Technology/Tether-Juventus-investment.aspx [6] https://www.coindesk.com/business/2023/04/18/tether-to-invest-128-million-in-juventus-becoming-second-largest-shareholder/ [7] https://www.coindesk.com/business/2023/04/18/tether-to-invest-128-million-in-juventus-becoming-second-largest-shareholder/ [8] https://www.coindesk.com/business/2023/04/18/tether-to-invest-128-million-in-juventus-becoming-second-largest-shareholder/ [9] https://www.sportsbusinessdaily.com/Journal/Issues/2023/05/01/Technology/Tether-Juventus-investment.aspx
- Tether, with its investment in Juventus, aspires to become a strategic partner beyond mere shareholding, aiming to contribute to the club's financial and operational stability.
- As part of its plan, Tether seeks board representation, focusing on capital raise, growth, and aligning strategic vision, with a goal of safeguarding Juventus's long-term financial health and operational stability.
- Juventus aims to raise capital to cover operational losses and finance new player acquisitions for the 2025–26 season, and Tether, with substantial liquidity, is prepared to support these financial and competitive ambitions.
- By securing a governance role, Tether hopes to bridge the gap between crypto-financial innovation and traditional sports management, supporting Juventus's international ambitions and modernization efforts.
