May 20 – Embattled Spanish giants FC Barcelona have secured a €500 million loan from US bank Goldman Sachs to ensure the club’s operations can run stably in the next two years.
Some clubs are too big to fail – or so it seems. FC Barcelona have found new financing that should keep the indebted club afloat in the near future. New president Juan Laporta negotiated the credit with the investment bank, providing a lifeline for a club that has teetered on the brink of bankruptcy throughout the current season.
Catalan daily L’Esportiu reported that the investment bank will release €100 million with immediate effect to ease the club’s situation.
The club’s recent annual report revealed a mammoth debt of €1.173 billion with Barcelona required to service €730 million in the short term. The breakdown of those debts is €263 million in bank loans, €160 million to members of staff who have deferred their wages and €200 million to cover bond financing.
The club will be allowed to spend the loan at will, but whether the new loan will stave off a financial Armageddon in the future is doubtful without the implementation of drastic cost control. Barcelona’s annual report already indicated that the club’s liquidity was limited with just €368 million in current assets and another €281 million in longer term non-liquid assets. Over 55% of Barcelona’s assets are accounted for by “intangible sporting assets” and property.
Contact the writer of this story, Samindra Kunti, at moc.l1634804640labto1634804640ofdlr1634804640owedi1634804640sni@o1634804640fni1634804640