FC Barcelona has received the green light from its members to take out a loan. Barça will borrow € 525 million in fresh capital from Goldman Sachs – mainly to pay off its short-term debt.
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FC Barcelona borrow money to pay off their debts. What sounds strange at first glance is actually the case. At the general assembly held on Sunday, the delegate members approved the proposed loan of 525 million euros.
The refinancing proposal was accepted with a large majority of 588 votes in favor (89%), 28 votes against (4%) and 43 abstentions (7%).
Barça received the green light to borrow EUR 525 million from the investment bank Goldman Sachs. “FC Barcelona is proposing a loan with a maximum term of 15 years with the aim of receiving an interest rate of 3%,” said a statement from the club. Barça do not want to use the fresh capital to buy players, but to pay off the short-term debts that are weighing on the club.
ℹ Approved the refinancing proposal for 525 million
– FC Barcelona (@FCBarcelona_es) June 20, 2021
Answering questions from members, President Joan Laporta stressed that “the loan is necessary to give the club air to breathe”. Barcelona is known to plague over a billion euros in debt, 730 million euros of which are short-term liabilities.
Not only the lack of income due to the corona pandemic ensured that Barça has amassed this exorbitant mountain of debt. The years of mismanagement of the former President Josep Maria Bartomeu and his board of directors, under whom the money was squandered on massive salaries and transfers, plays a major role. Laporta himself had in an interview with the Catalan newspaper The vanguard recently stated that Barcelona’s financial situation was “worse than I thought – even though I had anticipated a very complicated situation”.
Barça still owes various clubs money for player purchases that are far in the past because they had negotiated installments at the time. For example, they still owe FC Bayern Munich money for the transfer of Arturo Vidal, Girondins Bordeaux for the purchase of Malcoms and Grêmio Porto Alegre for the transfer of Arthur – all players who no longer play for FC Barcelona. Barça still have a lot of money to pay for Coutinho. The fresh loan of 525 million euros should help to relieve the club financially of these short-term debts.
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