Lingotto Investment Management Llp

Event Detail: INCORRECT ACCOUNTING OF TRANSACTIONS -- (1) ONE COUNT, (2) FELONY, (3) NOT GUILTY. Status: Pending Summary: MR. VELLANO SERVED AS A NON-INDEPENDENT, NON-EXECUTIVE DIRECTOR OF JUVENTUS F.C. S.P.A. ("JUVENTUS") BETWEEN OCTOBER 2012 AND OCTOBER 2021. IN NOVEMBER 2021, THE PUBLIC PROSECUTOR'S OFFICE OF THE COURT OF TURIN (THE "PUBLIC PROSECUTOR") BEGAN AN INVESTIGATION AGAINST JUVENTUS AND CERTAIN OF ITS CURRENT AND FORMER EXECUTIVE DIRECTORS AND MANAGERS (EXCLUDING MR. VELLANO) REGARDING THE CONTENT OF THE "REVENUES FROM PLAYERS' REGISTRATION RIGHTS" SECTION OF JUVENTUS' FINANCIAL STATEMENTS FOR THE FINANCIAL YEARS ENDING 30 JUNE 2019, 30 JUNE 2020 AND 30 JUNE 2021. ON 24 OCTOBER 2022, THE PUBLIC PROSECUTOR SERVED A NOTICE OF CONCLUSION OF ITS PRELIMINARY INVESTIGATIONS ("AVVISO DI CONCLUSIONE DELLE INDAGINI PRELIMINARI"), CITING ALLEGATIONS THAT OFFENCES HAD BEEN COMMITTED BY JUVENTUS - PURSUANT TO LEGISLATIVE DECREE 231/2001 WHICH GOVERNS THE ADMINISTRATIVE LIABILITY OF ENTITIES - AND CERTAIN OF ITS CURRENT AND FORMER EXECUTIVE DIRECTORS AND MANAGERS, THE FORMER NON-EXECUTIVE DIRECTORS (INCLUDING MR. VELLANO), THE FORMER STATUTORY AUDITORS AND EXTERNAL AUDITORS. THE CURRENT ACCUSATIONS MADE BY THE PUBLIC PROSECUTOR RELATE TO THE ALLEGED INCORRECT ACCOUNTING OF TRANSACTIONS (IMPROPERLY) REFERRED TO AS THE "EXCHANGE" OF PLAYERS' REGISTRATION RIGHTS (ALLEGED BREACH OF IFRS 38 AND 45) AND AGREEMENTS FOR THE REDUCTIONS AND INCREASES OF SALARIES OF REGISTERED PERSONNEL (ALLEGED BREACH OF THE IFRS GOVERNING THE ACCOUNTING OF THE REMUNERATION OF THE REGISTERED PERSONNEL) IN THE FINANCIAL STATEMENTS OF JUVENTUS FOR THE FINANCIAL YEARS ENDING 30 JUNE 2019, 30 JUNE 2020 AND 30 JUNE 2022. THE ALLEGATIONS AGAINST MR. VELLANO RELATE TO THE APPROVAL OF THE RELEVANT FINANCIAL STATEMENTS BY THE BOARD OF DIRECTORS OF JUVENTUS (MR. VELLANO VOTED IN FAVOUR OF APPROVING THE IMPACTED FINANCIAL STATEMENTS AT THE RELEVANT BOARD MEETINGS). THE ALLEGATIONS DO NOT MAKE ANY SUGGESTION THAT MR. VELLANO PLAYED ANY ROLE OR HAD ANY INVOLVEMENT IN THE PREPARATION OF THE FINANCIAL STATEMENTS OR THE MANAGERIAL/EXECUTIVE ACTIONS WHICH MAY HAVE LED TO THE TRANSACTIONS IN QUESTION BEING IMPROPERLY CATEGORISED. MR. VELLANO VIEWS THESE ALLEGATIONS AS UNFOUNDED AND IS IN THE PROCESS OF EXAMINING COPIES OF THE INVESTIGATION DOCUMENTS FOR THE PURPOSE OF EXERCISING HIS RIGHT OF DEFENCE. MR. VELLANO HAS SUBMITTED A RESPONSE TO THE ALLEGATIONS IN HIS DEFENCE.