Strategic Value of Institutional Ownership in Legacy Brands: The Juventus Case Study

The debate between family-controlled legacy brands and speculative buyouts has long captivated institutional investors. While both models aim to create value, their approaches diverge sharply in long-term outcomes. Family-controlled enterprises, with their intergenerational focus and stable governance, often outperform speculative buyouts, which prioritize short-term gains and financial engineering. This article examines the strategic value of institutional ownership in legacy brands through the lens of Juventus Football Club (FC) and contrasts it with the speculative buyout model exemplified by Manchester United.

The Endurance of Family-Controlled Legacy Brands

Family-controlled businesses, such as Juventus FC, are anchored by long-term strategic planning and operational discipline. According to a report, 43% of the largest companies in Latin America are controlled by families or founder-linked groups, and these firms outperform their peers in profitability and shareholder returns. For instance, the Votorantim Group, a five-generation family business, and Itaú Unibanco, a family-controlled bank, have demonstrated resilience through economic cycles, driven by high R&D spending and fixed investment as data shows.

Juventus FC, controlled by the Agnelli family through Exor NV, mirrors this model. Despite financial challenges, the club's institutional ownership structure has enabled strategic investments in global brand expansion and sporting competitiveness. A recent capital increase of €98 million, approved in 2025, underscores Exor's commitment to maintaining liquidity and reducing debt while aligning with long-term goals according to financial reports. This stability contrasts sharply with speculative buyouts, where short-term debt-driven strategies often undermine sustainability.

The Risks of Speculative Buyouts: The Manchester United Example

Speculative buyouts, such as the Glazer family's leveraged acquisition of Manchester United in 2005, highlight the perils of prioritizing financial engineering over operational health. As of December 2025, Manchester United's net debt stood at £749.2 million, the highest in club history, with inherited debt from the Glazer era compounding recent borrowing for player recruitment. While cost-cutting measures under INEOS leadership improved operating profits in 2026, the club's revenue declined by 2% in 2025 due to reduced broadcasting and sponsorship income according to analysis.

This case illustrates a critical flaw in speculative buyouts: high debt loads and short-term cost-cutting often erode long-term value. Unlike family-controlled models, speculative buyouts frequently lack the governance mechanisms to balance financial discipline with strategic reinvestment. For example, Manchester United's wage-to-revenue ratio fell to 52.5% in 2025, but this was achieved through player loan exits and job cuts, not sustainable operational improvements as research shows.

Institutional Ownership and Long-Term Strategic Outcomes

Family-controlled legacy brands like Juventus thrive when institutional investors adopt a collaborative, long-term mindset. Exor's €110 million capital increase in 2025, approved by shareholders, reflects a commitment to liquidity and competitiveness according to financial reports. This approach aligns with academic findings that institutional investors increasingly favor family-controlled businesses for their stable governance and alignment with long-term horizons as studies indicate. For instance, family firms under institutional ownership often exhibit higher returns on equity and resilience during downturns, as seen with Itaú Unibanco's 21% annualized returns between 1995 and 2019 according to data.

In contrast, speculative buyouts struggle to replicate this success. A 2025 analysis revealed that the average enterprise value to operating revenue multiple for top soccer clubs rose from 3.4x in 2016 to 4.9x, driven by institutional interest. However, this re-rating masks structural weaknesses, such as Manchester United's reliance on debt and its inability to sustain profitability without aggressive cost-cutting.

Growth Equity as a Middle Path

For family businesses seeking external capital without sacrificing control, growth equity (GE) offers a compelling alternative. Unlike traditional buyouts, GE involves minority stakes and collaborative governance, enabling firms to retain strategic autonomy while accessing institutional resources as research shows. Research indicates that GE supports human capital investments-such as talent expansion and wage increases-more effectively than speculative buyouts according to findings. This aligns with family firms' priorities, which often emphasize employee well-being and long-term sustainability over short-term profit maximization.

Conclusion

The Juventus case study underscores the strategic advantages of family-controlled legacy brands in institutional investment contexts. By prioritizing long-term value creation, stable governance, and intergenerational continuity, these enterprises outperform speculative buyouts, which are prone to debt-driven strategies and short-termism. As institutional investors increasingly recognize the merits of family-controlled models, the future of legacy brands may hinge on their ability to balance institutional collaboration with operational excellence.