Two of Spain’s top tier football teams, Real Madrid and Barcelona have been forced to ask the central government for €200 million to pay the wages of their top players.
THE coronavirus crisis put a complete stop to professional football and sports, as even the most renowned football clubs in the nation are asking for financial help from the state.
The combined wages of these famous football players exceeds the billion mark and in order to pay up and keep them happy, the clubs have asked the Official Credit Institute in Spain for a €200 million loan guarantee.
According to Real Madrid sources, the club has recently asked for a new syndicated loan of around €100 million. Half of this has been provided by La Caixa bank, whilst the remaining €50 million has been provided by Santander, Bankia and BBVA.
To cover the costs of paying all of the professional football staff, Real Madrid needs approximately €594 million, €299.8 million of which belongs to the players.
On the other hand, their rival team, Barcelona FC have asked for credit policies which amount to almost €120 million. This has been arranged with several banks including Caixa Bank, Santander, Bankia, BBVA and Sabadell.
The Catalonian club has agreed to extend these credit lines by about three years. The main difference in these financial policies is that the State will assume 80 per cent of the risk.
Barcelona allocates around €671 million to pay the salaries of its professional players across an array of different sports teams, including basketball, handball and roller hockey.
The coronavirus crisis left both teams in a complex, short-term fiasco and now both teams will end the 2019-2020 season with significant losses.