June 29 – Atletico Madrid has had a capital injection of €181.8 million from private equity investor Ares Management who will take a 33.96% stake in the Spanish club.
The La Liga champions said that the new funds will “reduce the level of indebtedness derived from both the investment in the new stadium and the acquisition of players”, with the club’s revenue and income badly affected by the Covid-19 crisis.
Atletico’s debt rose to €999 million after the 2019/2020 season.
The capital increase was unanimously agreed through the issue of 972,082 shares.
Atletico chief executive Miguel Angel Gil said that the holding company Atletico HoldCo will exercise its pre-emptive subscription right in the capital increase. As a consequence,Atletico HoldCo will contribute almost €120 million to Atletico.
In a joint statement, Mark Affolter and Jim Miller, partners at Ares, said: “Ares is pleased to make this strategic investment in Atletico de Madrid given its international brand equity, loyal fan base and resilience through the Covid-19 pandemic.
“As the world begins to reopen and with the support of Ares’ flexible capital, we believe Atletico de Madrid is well-positioned to capitalise on growth in content demand and opportunities for expansion.”
Contact the writer of this story at email@example.com