June 21 – Barcelona’s socios have given their approval for a €525 million loan as the club battles with the financial fallout from the pandemic, the failed European Super League attempt, a sky-high player wage bill and infrastructure projects it can’t afford.
The agreement to accept the loan, to be provided by Goldman Sachs, was made at a general assembly at the weekend. The loan will be repaid over 15 years at a 3% interest rate.
Finance director Eduard Romeu said the loan would be guaranteed against future broadcast rights.
In addition a bridging loan of €80 million was requested to help meet payments becoming due in June and July. These included transfers of €75 million, €24 million in taxes and a whopping €57 million in player wages.
Currently the club’s debts stand at about €1.17 billion and growing.
New president Joan Laporta, acknowledging thevery high debt, said: “Much work has been done to get various financial institutions to make proposals to us to refinance short-term debt. The economic conditions of the credit have been assessed. In the market, Barçacan be trusted.”
The club just doesn’t have the trust of the rest of the football world. And with the potential for it to be excluded from the next UEFA Champions League still very much a possibility, pending legal challenges, how much can it trust its bankers?
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