Tether Seeks Board Seat After €128 Million Juventus Investment

Tether, the prominent cryptocurrency company, has expressed frustration over the limited communication between itself, Juventus Football Club, and Exor, the club’s majority owner. Tether recently increased its stake in Juventus, becoming the club’s second-largest shareholder, and has been seeking a more active role in the club’s decision-making processes. Tether CEO Paolo Ardoino has stated that the company’s attempts to further raise its shareholding via a capital raise are being ignored by the club, and hinted that Tether is interested in securing a seat on the club’s board of directors.

Tether’s interest in securing a board seat comes after the company invested €128 million in Juventus, raising concerns about the company's influence and the potential for conflicts of interest. Ardoino has expressed that Tether’s goal is to ensure the long-term success of the club and believes having a voice in key decisions is part of fulfilling that responsibility. However, a spokesperson for Juventus downplayed Tether’s claims, stating that while letters about a meeting had been exchanged, no date had been set. The spokesperson suggested that a meeting could be held after the ongoing FIFA Club World Cup has ended.

Exor, which owns two-thirds of the club, has reportedly stated that it plans to evaluate Tether’s proposition after the stablecoin issuer and Juventus meet. Ardoino indicated that Tether might hesitate to purchase more publicly listed Juventus shares due to the lack of communication from the football club. Both Ardoino and Tether’s chairman, Giancarlo Devasini, are Italian and lifelong supporters of Juventus.

The Italian football team, which has fallen from grace, is seeking to raise $116 million, or about 10% of its market capitalization. Exor has reportedly agreed to provide $17.4 million in cash upfront and may participate in further capital-raising rounds to ensure its shareholding is not diluted. This situation highlights the growing influence of cryptocurrency companies in traditional industries and the potential for conflicts of interest when these companies invest in established organizations. It also raises questions about the role of communication and transparency in managing these relationships, and the potential for breakdowns in communication to lead to conflicts and disputes.