How many of us are wondering these days how is it possible to spend all this money on a market operation during the Covid 19 Pandemic? Above all, is it not convenient to take this player when the contract expires in 5 months, starting from January 2022?
According to the Spanish newspaper El Economista, at the beginning of 2021 the club chaired by Florentino Perez revised the agreements in place with the private debt division of the US Hedge Fund Providence, extending them until 2027 and thus obtaining fresh resources to finance the current management of the club.
The new agreement, which follows the one currently in place between Real Madrid and Providence with expiration on 30 June 2021, provides for the transfer to the hedge fund of the revenues related to the sponsorship contracts of the Meregues, with the exception of technical and commercial sponsorship of the jersey, signed respectively with Adidas and Emirates, and of the naming rights of the Bernabéu Stadium and the sports city, which remained in the hands of the club. With the renewal of the agreement, which expired on June 30, 2027, Real Madrid was thus able to obtain part of the liquidity that they planned to collect thanks to sponsorship contracts.
In fact, in recent months, the club led by Florentino Perez has raised new debts for a total of 205 million euros. More specifically, Real Madrid obtained a 5-year loan of € 155 million at a rate of 1.5% and a short-term line of credit of € 50 million. All these new loans were guaranteed at 70% by the ICO (Official Credit Institute), the state bank controlled by the Spanish Ministry of Economy.
It is thinking that this market operation (actually more a marketing and commercial strategy operation, being able to save all this money by waiting only a few months to have the player on a free transfer) wants to demonstrate the good intentions and relationships that it is intended to have between the President Florentino Perez and PSG President Nasser Ghanim Al-Khelaïfi, after the bad situation of the creation of European SuperLeague, now that the Head of the ECA is Al-Khelaïfi and with the next world football cup in Qatar in 2022 that will see the UAE as protagonists with many people prominent in the world of sport.